What should you know about stamp duty and registration charges in Hyderabad?

Stamp Duty and Registration Hyderabad

As we all know, settling down in India is synonymous to owning a home. Many Indians aspire to own property as soon as they start working. However, zeroing in on the right property we aspire isn’t easy. Many of us apply for home loan and get the property registered. But this registration process of transferring ownership is important as you need to pay some charges in the form of stamp duty and registration charges. But after reading this, everything will be clear and helps you in following rules and get it done easily.

In few states, concerned government provide discounts to women buyers and most of the states have different stamp duty and registration charges for their rural and urban areas. Hence these charges are collected by the representative state governments.

Know the whole process of stamp duty and registration charges to avoid complications

The rates of both, stamp duty and registration charges are based on the price of the property registered or the ready reckoned rate, whichever is higher.

What is Stamp Duty?

Stamp duty is also one of the taxes levied by the government on all legal property transactions. Any stamp papers which have to buy either in the name of the seller or buyer is valid for 6 months, provided the stamp duty is paid without any delay. Simply, any document becomes legal only when the payment of stamp duty is done. Any document can be used as evidence in a court of law when the stamp duty payment is done.

Stamp duty charges

As mentioned above, the calculation of stamp duty differs from state to state. However, the central government fixes the stamp duty and registration charges of specific instruments. Any delay in the payment will charge a penalty of 2% on a monthly basis. Stamp duty charges also depend on whether a given property is new or old.

Ways to pay stamp duty

You can pay stamp duty in 3 ways. They are:

• Physical stamp paper: This type of payment is the most traditional way. You need to search for a vendor selling non-judicial stamp papers which have become tedious these days. After you have bought, the transaction details can be written or typed on them. If the stamp duty is a high amount, then you might require many stamp papers. This method is not preferred by many these days

• Franking: In this process, an authorised franking agent will stamp on your document which indicates that you have paid stamp duty. You should approach an authorised bank who will act as a franking agent. After you pay the stamp duty, a franking machine will be used to frank the document with a special adhesive stamp.

Every state will have minimum amount prescribed for franking. Franking charges vary from place to place and agent to agent. Usually, they vary from 1% to 10% of the amount worth of the property you buy. This fee might be adjusted against the stamp duty at the time you execute the sale deed.

• E-Stamping: This is a method of payment done online, introduced by the government to avoid counterfeit stamp papers and to make stamping easy. Stock Holding Corporation of India Limited (SHCIL) has been appointed as the official vendor for e-stamping and is also the Central Record Keeping Agency for all the e-stamps that are used in the country. The benefit of e-stamping is the convenience it gives with various payment methods such as debit cards, credit cards, cheque, demand draft and online banking. However, the issue with e-stamping is that a duplicate of your e-stamp will not be issued.

What is a Registration Fee?

The registration fee is a fee over and above the stamp duty. Stamp duty and registration charges, both vary from state to state. Once you pay the stamp duty, the document had to be registered under the Indian Registration Act with a sub-registrar. This registrar should belong to the jurisdiction where the property is situated if the transaction involves property purchase.

Registration Procedure

There are many documents that you need to register a transaction. Here are the documents required at the time of registration for a property purchase in Hyderabad. However, the documents list might vary from state to state.

Following are the documents required to present at the time of registration of any property.

• Proof of Identity is mandate such as PAN Card, Driving License, and Passport etc for both the seller and buyer.
• Challan or Demand draft which evidences the payment of full stamp duty, transfer duty is applicable, registration fee and user charges.
• Section 32A photo form of executants/claimants/witnesses
• Two credible persons who witness and identify the parties and identity cards with photos of such persons
• A photograph capturing a frontal view of the property. (8/6 inches)
• GPA/SPA, if any in original and its Photostat copy
• Link documents copy

You must submit all the original documents bearing a signature of all parties if you intend to buy.

Below is the table of stamp duty and registration charges along with transfer duty in case of sale, transfer or partition of a property in Hyderabad.

Now that you know the whole process related to stamp duty and registration charges. It should be easy for you to register that house you are planning to buy. And this might be the right time to buy that house as loan rates have dropped. Always compare across lenders to get the best rates.

One of the benefits that home buyers have in Hyderabad is that the government has provided plot registration documents and apartment registration documents online. This saves home owners a lot of time and makes the overall process quick.