Irrespective of the type of property you buy, its registration is a mandatory requirement by law. The property registration process involves the payment of stamp duty and other registration charges for processing the sale deed and other documents. If you’re looking for information regarding stamp duty and property registration, you’ve come to the right place. Here’s everything that you should know.
The collection of stamp duty and registration charges falls under the state government’s aegis, not the central government. Almost every state in the country has its own stamp duty laws. Thus, the rate of stamp duty varies from one state to another. For instance, the stamp duty rate and registration charges in Mumbai are very different from that of Kochi. Furthermore, the registration of property is governed by various sub-registrar offices, that also fall under the purview of the state government.
You are only required to pay stamp duty and property registration charges once when you register the property. Failing to pay the appropriate amount of stamp duty is an offence. It can lead you to paying a fine ranging from 2% on the outstanding amount per month to around 200%.
Many states, in a bid to empower women and enable them to become homeowners, charge a significantly lower amount of stamp duty if the property is registered in the name of a woman. For instance, the prevailing stamp duty rate in Haryana is around 7%, whereas if the property is registered in the name of a woman, the rate is just 5%.
In addition to purchasing physical stamp papers over the counter and franking (document stamping), property buyers can also pay the charges online. Almost all Indian states have an online portal that allows for payments. This would not only simplify the process of property registration, but also save a lot of time for the buyer.
The property that you buy can only be registered after the payment of stamp duty and registration charges. Thus, ensure that you pay the right charges and carry all the necessary documentation to back it up. Once you’ve made the payment of stamp duty, fix an appointment with the sub-registrar’s office for registering the property in your name.
If you’ve taken out a home loan, you will also have to pay stamp duty on the agreement that you enter into with the lender. The financial institution granting the loan usually charges around 0.1 – 0.2% as stamp duty.
Now that you know everything about stamp duty and property registration, go ahead and make your dream of owning property come true with a loan. That said, keep in mind to always check home loan interest rates being offered by different lenders. Make use of a home loan EMI calculator to ascertain your repayment obligations before you apply for a loan.