Not to mention, that buying a house is an overwhelming experience rather a monumental feeling. The happiness of achieving it, no matter at what age, knows no bounds. Well, there is no denying the fact that it is one of the biggest financial decisions that you will make in your life. The final step while buying a house is the possession. This process involves the physical transfer of the property. It then becomes your liability to get it registered in your name by paying a fee. It is therefore, important to have a proper understanding of the Stamp Duty for Property Registration. Let’s try to understand what is stamp duty, why is it important to pay stamp duty and its other aspects.
Stamp Duty for Property Registration: What is it?
The physical possession of a property doesn’t mean complete ownership of the property. You need to have legal ownership of the property. Subsequently, at the time of registration, you will also have to pay a fee (a government tax levied on property transactions) referred to as stamp duty.
This is obligatory as per the provisions of Section 3 of the Indian Stamp Act, 1899.
How the Stamp Duty for Property Registration is Computed?
The fees you pay as stamp duty for registration of the property depend on the total market value of the property. To state the fact, it considers the market value or the agreement value of the property, whichever is higher. However, the rate of varies from state to state. Besides the cost of the property, you need to pay the stamp duty on promissory notes, conveyance deeds, bill of exchange, shares & debentures and immovable assets, etc.
7% to 10% of the total market value of the property or more than that is generally what you pay.
Other Factors that Determine Your Stamp Duty Charges
- Status of the property (Old or new property)
- Gender of the owner (Some states offer concessions if the owner of the property is a female)
- Location of the property: (different in cities, rural areas, metropolitans and suburban areas for some states)
- Usage of the property (commercial property or residential one)
- Type of property (apartment, independent house)
- Age of the owner (concessions given to senior citizens in few states)
Stamp Duty for Property Registration: When do you have to pay?
You need to pay the stamp duty in full either on or before the date of the legal transaction. Subsequently, the official transfer takes place. Besides the parties in the agreement need to sign the sale deed. In addition, to this it is important to keep in mind that you cannot claim the legal ownership of the property without paying this charge. In case you avail Home loan to buy the property; you may get the stamp duty financed as well.
Online mode of paying stamp duty:
Wondering how to pay the fees? Worried if you have to visit in-person, stand in queue for long hours? Definitely No! In fact, you may now pay the stamp duty online through the official website from the comfort of your home. The process to pay stamp online is convenient. You only need to fill the details like the state in which your property is located and fill out the application form. Subsequently, you need to submit the form to the collection centre. Besides, you need to deposit the funds needed. Eventually, an e-stamp certificate with a Unique Identification Number (UIN) is issued to you.
Conclusion
If you are all set to make one of the biggest investments of your life, it is indispensable to be aware of all the steps and additional costs. Hence, the stamp duty and registration charges are things you cannot overlook. Take every possible legal safeguard to make certain that the whole process of completing the purchase is hassle-free and convenient.
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