Property Registration
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Property registration is the process of registering documents related to property according to section 17 of the Registration Act, 1908.
As mentioned in the section above, the transfer of property must be registered, if it exceeds a certain monetary limit. So, if the sale of land is done for more than Rs 100, the land must be registered in the name of the new owner by paying the due stamp duty and registration charges.
The property registration process must be done at the office of the sub-registrar having jurisdiction over the area in which you have bought property. In most Indian states, property registration involves a computerized process.
When you purchase a flat directly from the builder, registration of property gives you the right to legally own, use and dispose of the property. When you purchase a flat that is being transferred from one hand to another for the second or third time, you will have to pay stamp duty and registration charges over it.
Stamp Duty and Registration Charges
More than buying a property, registering it can be taxing. If you are planning on buying a property, remember that the amount quoted to you by the seller is not the final price you have to pay. Easily, a few lakhs get added to the price quoted to you when you’ll register it on your name. Did you know that you will be charged stamp duty and registration charges, cess, and surcharges when you pick a property? Yes, all the charges put together can come up to 7% to 10% of the total market value of the property or more than that. In most states in India, 5% to 7% of the total market value of the property is charged as stamp duty while 1% is charged as a registration fee.
What is Stamp Duty?
While transferring the title of your property to another person, you will be charged property stamp duty. This is a fee that is levied by the state government on the documents you need to register your property. Stamp duty and Registration Charges differ from one state to another.
You will have to pay Stamp duty while registering a property as it is mandatory under Section 3 of the Indian Stamp Act, 1899.
The state government collects stamp duty to validate your registration agreement. A registration document with a stamp duty paid tag on it acts as a legal document to prove your ownership of the property in court. Without paying stamp duty charges, one cannot claim the property to be his/her own legally. Thus, it is very important to pay the full stamp duty charge.
Stamp Duty and Registration Charges in Different Cities across India
Given below are the stamp duty and registration charges in different cities across India| City | Stamp Duty Charges | Registration Charges |
|---|---|---|
|
Bangalore |
2% to 3% |
1% of the property value |
|
Delhi |
4% to 6% |
1% of the deal value |
|
Mumbai |
3% to 6% |
1% of the property value |
Factors that Determine Your Stamp Duty Charges
• Age of the Property: The age of the property plays a crucial role in determining the stamp duty charges you will be required to pay. As stamp duty charges are calculated as a percentage of the total market value of the property, old buildings usually attract less stamp duty charges and new buildings attract a high charge. This is because the market value of old buildings would have depreciated.
• Age of the Owner: Almost all state governments have subsidized stamp duty charges for senior citizens. So, the age of the owner plays an important role in determining the charge.
• Gender of the Owner: Like senior citizens, women in our country also get a discount on stamp duty charges if the property is registered in her name. Men pay about 2% extra to get their property registration documents stamped when compared to women.
• Purpose: Commercial buildings attract a high stamp duty fee when compared to residential buildings. This is mainly because commercial buildings would need a lot of amenities, floor space, and security features.
• Location: If your property is located in a municipal locality or an upscale urban area, be prepared to pay high stamp duty. If your property is located in Panchayat limits or the outskirts of the town, you will land up paying less to get it stamped.
• Amenities: Did you know that the government will charge you for every extra amenity you have on your premises while registering the property? Yes, the government has a list of over 20 amenities that you will have to pay extra for if you have them on your property. Some of the amenities are lifts, a swimming pool, a library, a club, a gym, a community hall, and a sports area.
Stamp duty rates and registration charges in Greater Noida
The Uttar Pradesh government levies stamp duty and registration charges on all properties located in Greater Noida as well. The rates are mentioned below in the table.
| Ownership | Stamp duty rates | Registration fees |
|---|---|---|
|
Male |
7 percent |
1 percent |
|
Female |
7 percent-Rs 10000 |
1 percent |
|
Joint (Male and Female) |
7 percent-Rs 10000 |
1 percent |
How to calculate stamp duty charges in Noida, Greater Noida?
Let us understand the stamp duty and registration charges applicable on a property worth Rs 50 lakh in Noida and Greater Noida for male and female owners. Assume that a man and a woman buy two adjacent properties in the twin city. Following will be the total cost of the property for them:
Stamp duty payable by the male property owner = 50,00,000 * 7/100 = Rs 3,50,000
Registration fee = 50,00,000 * 1/100 = Rs 50,000
Hence, total cost of the property = Rs 50,00,000 + Rs 3,50,000 + Rs 50,000 = Rs 54,00,000
Stamp duty payable by the woman property owner = 50,00,000 * 7/100 = Rs 3,50,000
Being a woman, Simran gets a rebate of Rs 10,000 on the total stamp duty charged.
Registration fee = 50,00,000 * 1/100 = Rs 50,000
Hence, total cost of the property = Rs 50,00,000 + Rs 3,40,000 + Rs 50,000 = Rs 53,90,000