Stamp Duty & Property Registration Charges in India

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta
 

Real Estate has always been the priority asset class for majority of Indians to invest their lifelong savings. Whether one is investing for end-use or for investment purpose, he/she needs to take notice of various costs associated with real estate. Other than paying the market value of property in consideration, there are costs such as brokerage charges, insurance, taxes, and stamp duty & registration charges.

In this article, Stamp duty and registration charges are presented in Gurgaon, Noida, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Pune, Ahmedabad, Faridabad, Delhi, Ghaziabad, Kochi, Jaipur, and other cities (states) in India.

Stamp duty and registration charges in india from Green Realtech Projects Pvt. Ltd

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Stamp Duty Refund Process

So things haven’t been as perfect as you would have expected with your registration procedure and to make things worse you have already paid stamp duty to the state. Since you are right now on this page, I will make a wild guess and deduce that you wish to have your stamp duty refunded. Good for you, however, there’s a slight problem, the first thing you need to realize is that your money has already been received by the state government and the second thing is that to get it back from them wouldn’t be any less of a mean feat. So how can you go about it?


The whole of the stamp duty refund procedure could be described into two general steps:

1. Step 1: Filing a stamp duty refund application.
2. Step 2: Dedicated follow up.

• Step 1. Stamp duty refund application (Maharashtra)

To file a stamp duty refund application you have to complete an online procedure and an offline procedure.

Online procedure: To complete the online procedure you could go to state government’s Department of Registration and Stamps website. Complete the form and download or print a copy of completed form.

Offline procedure: To complete the offline procedure for stamp duty refund you will need to download various forms from IGR Maharashtra’s official website like;

• Application form
• Jabab
• Checklist
• Receipt for the Value of stamps (Two Copies)
• Affidavit
• Pratidnyapatra

Besides the aforementioned list you will further need some other documents, they are as following:

• Photocopy of I.D. (Preferably Pan Card)
• Original Gras Challan/Simple receipt Challan or ESBTR certificate
• A draft of the Agreement which you couldn’t register or Cancelled Agreement
• A cancelled cheque of the account where you wish to receive the refunded stamp duty and registration fee amount

Attach all the downloaded forms and rest of the documents together. Create two more photocopies of all the completed forms and attached documents. One photocopy will be attached with the file you are about to submit, the other photocopy will be served as your acknowledgement.

• Step 2: Dedicated follow up.

Filing of the stamp duty application is just the beginning and you will need to maintain consistent and dedicated follow-up of the concerned government office. Make sure that no additional requirements are asked of you by the concerned office. Usually there is a deduction of Rs. 1000/- (max) only out of your stamp duty and registration fees and the rest is refunded to you. Sometimes the application is rejected.

Those of you who intend to file stamp duty refund application personally, you could check if you are eligible for refund from here: Are you eligible for stamp duty refund?

I hope that you have been informed about the basics properly and sincerely wish that you do get your Stamp duty & Registration fees amount back.

Was this article useful to you? If you have any queries regarding stamp duty refund procedure, please feel free to contact Sarvesh R by posting comments here.

4 modes to pay Stamp Duty and registration fee for your property transactions

There are four modes to pay Non-Judicial Stamp Duty and registration fee for your property transactions. You will have to select the mode of payment on the basis of the amount of stamp duty you are required to pay. The modes of payment are as follows:

1. Franking
2. GRAS
3. ESBTR
4. Stamp Paper

Out of the aforementioned stamp duty modes, franking is useful only when your stamp duty amount is less than Rs. 4,999 (Four Thousand Nine Hundred and Ninety Nine Rupees). If your stamp duty amount is more than that then you look towards other modes.

Franking

Franking is simply a government stamp which is printed on a Paper. You could pay a maximum amount of Rs. 4,999 (Four Thousand Nine Hundred and Ninety Nine Rupees) by franking,

you are required to deposit the stamp duty amount with the bank where franking service is available and get the page of your Agreement/Deed or other pertinent document franked. Please remember that signed documents are not accepted for franking.

GRAS (Government Receipt Accounting System)

To pay through GRAS, your stamp duty amount should be more than Rs. 5,000/- (Five Thousand Rupees). This service is available in selective branches of few banks. Stamp duty amount less than Rs. 50,000/- (Fifty Thousand Rupees) could be paid in cash while more than that amount has to be paid through NEFT or RTGS.

You are required to fill your personal identification and property details on GRAS website and take a print of the filled form. This form is known as challan. Further you are required to submit the challan with the relevant bank authorities and they will do the needful.

There is also a provision to complete the whole process online, if you are well versed with net banking. If you wish to complete your payment online then please select "e-payment" as your payment mode and continue towards payment.

List of Banks where GRAS service is available:

• Andhra Bank
• Bank of India
• Bank of Maharashtra
• IDBI Bank
• Punjab National Bank
• State Bank of India
• State Bank of Hyderabad

ESBTR (Electronic - Secured Bank & Treasury Receipt)

To pay through ESBTR, your stamp duty amount should be more than Rs. 5,000/- (Five Thousand Rupees). This service is available in selective branches of few banks. Stamp duty amount less than Rs. 50,000/- (Fifty Thousand Rupees) could be paid in cash while more than that amount has to be paid through NEFT or RTGS.

You are required to fill your personal identification and property details on the site of selected banks which provide the services. Take the print out of the filled form and submit it to the selected bank branch, the bank authorities will do the needful.

List of Bank links where ESBTR service is available:

• Bank of Maharashtra
• IDBI Bank
• Punjab National Bank

Stamp Paper

Once the most convenient way of paying stamp duty has now been reduced to being a cumbersome process. The new government formalities require that the stamp vendor record every detail about stamp purchaser and the transaction, the details are then mentioned at the back of your stamp paper.

The buying process being time consuming may invoke choicest of curses, however do keep in mind, that it is an attempt by the government to introduce some transparency in the buy/sale process of stamp Papers.

Now a days, some sub registrar offices insist on stamp duty payments by other means, hence make sure to confirm with the registrar's office first before investing in Stamp Papers.

Conclusion: These are the methods of Stamp Duty and Registration Fee Payment. Choose wisely and ensure that you have understood the various modes and processes completely before trying the same. In case you have any doubts and queries regarding the procedures, kindly mail us at nirrtigo@nirrtigo.com and we will do our best to address them. Thank you for reading.

This is a guest post by Sarvesh from Legal Counter

What are the various kinds of taxes and charges you have to pay when buying a property, residential plot, or apartment in India?

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Ok, you have finalized your property; i.e. residential plot or an apartment. Now what? Well, in addition to paying the property price, there are other charges which are incurred and are broadly categorized as follows:

1. Transaction charges
2. Stamp duty and registration charges
3. Service tax
4. Value Added Tax (VAT)
5. Capital gains tax to be borne out by the seller for a resale transaction

Transaction charges:

Transaction charges are those that are spent in availing the services of property broker. In case, you are buying an under construction property from real estate developer, then transaction charges are Nil. However, if you are buying the property from resale market such as a residential plot or a completed apartment, you will be paying the brokerage fee which is equivalent to 1% of the property value.

Stamp Duty and Registration Charges:

Real Estate Stamp duty is a type of tax accumulation by the Government of India. Stamp duty is established on the agreement value or on the market value whichever is greater.

For other states across India, click stamp duty and registration charges in India

The procedure also includes a registration fee for properties costing more than Rs. 30,000, which is fixed at 1% of the market value or the agreement value, whichever is higher.

Service Tax:

Service tax is applicable for under-construction property. In other words, if you are buying in an under construction project (apartment, flat, villa, etc.) from real estate developer, then you will be liable for service tax on property price. 

Service tax under composition scheme stands at 3.71% of property price.

Value Added Tax (VAT):

Recently, supreme court of India ruling states that the sale of an under construction property would be liable to VAT. It is likely that real estate builders will pass on this additional VAT on buyers. The VAT under composition scheme stands at 3% of property price.

Here is an example showing different charges for buying an apartment in Gurgaon, Haryana.

So the question to be asked is, if you would like to purchase an under construction property or completed one? While, in an under-construction property you will pay as per the construction plan whereas in a completed project the entire amount is payable within mutually agreed upon time period of 2-3 months.

In an under-construction property, you can make payment through cheque (white) whereas for a completed property you will end up paying by cheque and cash (black). The amount of money you pay by cash is dependent on the market value of the property minus the value of property as per the government circle rate. Why do a seller prefer cash component? Well, to save on capital gain taxes which stand at 20%.

Now, that you have a bit of information about various charges and taxes in property transaction. You decide J

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