While acquiring a property, it is important to take into consideration the registration and stamp duty charges too. These charges are considerably going to increase the budget set on purchasing your house and also differs in each state. Stamp duty and registration charges are mandated under the Indian Stamp Act, 1899 mainly to validate the sale of the property and maintain a record of the purchase.
The stamp duty and registration charges in Hyderabad are mentioned below:
Corporations and Municipalities
| Type of Fee | Amount |
|---|---|
| Registration charge | 0.5% of the property value |
| Stamp duty | 4% of the property value |
| Transfer duty | 1.5% on property value |
| Stamp and transfer duty payable on | MV or consideration, whichever is higher |
Other Areas
| Type of Fee | Amount |
|---|---|
| Registration charge | 0.5% of the property value |
| Stamp duty | 4% of the property value |
| Transfer duty | 1.5% on property value |
Apartments and Flats
| Type of Fee | Amount |
|---|---|
| Registration charge | 0.5% of the property value |
| Stamp duty | 4% of the property value |
| Transfer duty | 1.5% on property value |
Sale Agreement and GPA
| Type of fee | Amount |
|---|---|
| Registration charge | Rs.20,000.00 |
| Stamp duty | 5% of the property value |
| Transfer duty | 0% on property value |
Sale Agreement With Possession
| Type of Fee | Amount |
|---|---|
| Registration charge | 0.5% (minimum of Rs.1,000 and maximum of Rs.20,000) |
| Stamp duty | 4% of the property value |
| Transfer duty | 0% on property value |
Sale Agreement Without Possession
| Type of Fee | Amount |
|---|---|
| Registration charge | 0.5% (minimum of Rs.1,000 and maximum of Rs.20,000) |
| Stamp duty | 0.5% of the property value |
| Transfer duty | 0% on property value |
Documents Required for Flat Registration in Hyderabad
In order to register a property in Hyderabad, there are several documents required to do so. The list of documents required to register a property are mentioned below:
- ID proof (PAN card, Aadhaar card, Driving licence, Passport, etc., from both the buyer and seller.)
- Receipt or DD that acts as proof of payment for stamp duty, transfer duty and registration charges
- Section 32A form of claimants / witnesses / executants
- ID cards and photos of two credible witnesses
- A photo containing the frontal view of the property
- GPA/SPA documents
All the original documents must be submitted bearing all the required signatures of all the respective parties.
How is Stamp Duty and Registration Charges Calculated in Hyderabad?
Let us assume that a plot in Hyderabad, in a specific area, costs Rs.4,000 per square feet. This means that any plot or house sold in this area cannot be sold for lesser that Rs.4,000, but can be sold above this price.
Let us sat that Mr. Patel had purchased a property of 1000 square feet in the same area in Hyderabad at Rs.4,000 per square feet.
The guidance value for the property will therefore be Rs.4,000 times 1000 = Rs.40,00,000.
The stamp duty for the property (assuming it is a municipal property) will be 4% of the market value (Rs.40,00,000 lakh) = Rs.1,60,000.
Registration Charges for the property will be 0.5% of saleable value (Rs.40,00,000 lakh) =Rs.20,000.
Therefore, the total registration and stamp duty charges will add up to be Rs.1,60,000 + Rs.20,000 = Rs.1,80,000.
Therefore, Mr. Patel will have to pay a total of Rs.40,00,000 + Rs.1,80,000 = Rs.41,80,000 to obtain the property.
Factors that determine Stamp Duty Charges
- The age of the property – As stamp duty is considered based on the entire worth of the property or house, the age of a specific property plays a huge part in determining the charges on stamp duty. Newer properties tend to be more expensive than older properties, therefore, newer properties will attract a higher charge on stamp duty than older properties.
- The age of the owner of the property – Sometimes, older individuals get a discount on stamp duty in some cases. Many states offer senior citizens a subsidized stamp duty charge. This is the reason that the age of a property holder is key in determining the stamp duty charge of a particular property.
- Gender of the property owner – In the majority of states, men pay a higher stamp duty fee when compared to women. Women get a subsidized stamp duty charge and in most cases, men end up paying roughly 2% more stamp duty charge than a woman.
- Nature of the property – Residential properties often draw lower stamp duty charged that a commercial property. Since commercial properties usually require a lot more amenities in relation to a residential property, commercial properties attract a higher stamp duty charge.
- Location of the property – Different localities attract different stamp duty charges. For example, a property that is situated in an urban zone will he charged higher on stamp duty than if the property were to be located in a rural or suburban area.
- Amenities – The various amenities that a house or property contains also dictate the stamp duty payable by an individual. A property with lesser amenities would attract a lesser stamp duty charge while a property with more amenities will attract a higher stamp duty charge. Amenities like gym, sports area, lifts, gym, swimming pool, library, etc., will bear a higher stamp duty charge.
