Know About Registration Charges and Stamp Duty Rates

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Know About Registration Charges and Stamp Duty Rates

Owning a house is a beautiful dream and we all desire to cherish it but the extra expenses that come up even after paying the cost of the house should be known to us. One should be aware of the registration charges and the Stamp Duty Rates that have to be paid after paying the cost of the house.

1. Meaning of Registration Charges and Stamp Duty

The State government of the every state levies a fee called stamp duty which a home buyer has to pay when he purchases a house. It is a form of tax which is levied on all types of real estate properties. To get the legal ownership of a house after it is purchased, one has to get it registered by paying the registration charges. Registration offers legal ownership title to you.

Stamp duty and registration charges are important taxes which one has to pay to the respective city authorities of the state when he purchases a property. The registration fee and the stamp duty are not same in all the states of India.

2. Stamp Duty and Registration Charges are Important

Purchasing a home doesn’t end after paying the amount of the property. It needs a legal procedure that declares that you are the new owner of that property. This happens when the property gets registered at the Sub-Registrar Office after paying stamp duty and registration charges. Until then the property will be considered illegal. One cannot possess the right to secure that property from any fraud if it has not undergone the process of stamp duty and registration. This stamp duty and the registration charges will be paid through IGRS website and the transaction gets recorded in the Sub-Registrar Office. Only after undergoing a few legal formalities, you will be considered as the rightful owner of that property.

3. Documents Required for Registration in Hyderabad

The following documents are required to register a property in the city of Hyderabad.

ID proof of buyer and seller
GPA/SPA documents
Proof of payment
Section 32A form
Property frontal view picture
ID cards and photos of two credible witnesses
Route map

4. Revised Property Registration Rates in Telangana

Property registration rates in Telangana haven’t seen a hike from 2013 but now the government has decided to increase the registration and stamp charges for both agricultural and non-agricultural land and other buildings, such as flats etc. The market rates of land have increased exponentially during the last few years but the government has not increased the registration rates, though the law provides for a revision of the rate every two to three years. These rates are revised for the first time after the formation of Telangana. The Government of Telangana has launched the IGRS Telangana portal to guarantee transparency and liability in land transactions.

5. What is IGRS

The government of Telangana has created an official online portal, Integrated Grievance Redressal System (IGRS) for registration and stamp duty process. This is an initiative taken by the government and it is beneficial for both, the government and the citizens. This website facilitates various features. People can get to know the latest market value. They can search for Encumbrance Certificate (EC),e-Stamp services, and much more. It also facilitates to share the feedback and complaints related to the registration & Stamp Department of Telangana.

6. Factors that Influence the Stamp Duty

Stamp Duty in the state of Telangana varies based on the following factors in addition to the area of the property.

6.1. Location and Type of Property

Location of a property has a major influence on the stamp duty. It is not the same for all locations. A property in urban area demands more stamp duty as compared to one found in a rural area. Properties in semi-urban areas have different charges of stamp duty. Similarly commercial properties demand more stamp duty than residential ones.

6.2. Amenities of the Property

Amenities are in demand in the present generation. Obviously when you want to live a more luxurious life with more comforts and luxuries, then you will have to pay a higher amount as stamp duty. Properties with fewer amenities will have less stamp duty charges.

6.3. Age of the Property

This is another factor that influences the stamp duty. The more the age of the property, the lesser will be the stamp duty. Hence we can say that a newly constructed property will demand more stamp duty.

6.4. Gender and Age of the Buyer

These two factors also leave their influence on the stamp duty. In some states, a female buyer gets an allowance on the stamp duty as compared to a male buyer. This is done to encourage female buyers. Even the age of the buyer also reflects on the stamp duty. Senior citizens get a rebate on the stamp duty in some states.

7. Know About Registration Charges and Stamp Duty Rates

Stamp duty and the registration charges are the taxes levied by the government on the purchase of a property. In India, the state government is responsible for setting the rules and guidelines and maintaining the process of collection. It is generally fixed at a percentage rate of the transactional value. Stamp Duty is an important fee to pay for transferring the ownership of a property in legal records. Under the Indian Stamps Act, 1899, the payment of stamp duty acts as proof of record in cases of property disputes. Registration of a property requires a verification and submission of a few documents which are mandatory.

With technology in hand, the payment of stamp duty and registration charges has become an easy and convenient task. The digital portal, IGRS, created in the state of Telangana makes the payments easy. One can upload the required documents on the portal and pay the charges of stamp duty and registration fee on the portal. He can also book the time slot and appointment with the office of the sub-registrar. Then on the appointed day, he should visit the Sub-Registrar Office and carry on the formalities as required there. After completing all the formalities at the Sub-Registrar Office, he will get the endorsed, registered document on the same day. Make sure to carry all the original documents with you when you visit the Sub-Registrar Office. This process is very simplified and hardly takes a day to get your property registered on the appointed day. It is essential to know about the stamp duty and registration charges when we purchase a property.