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Stamp Duty Charges & Registration- Tips to Save on Stamp Duty

Updated on December 18, 2024 , 17457 views

Stamp duty is nothing but a charge which is obligatory for the house-owner or to-be-house owner. Read on to know about stamp duty, registration charges, city-wise stamp duty charges and how you can save stamp duty in India.

What is Stamp Duty?

Stamp duty is a fee that is charged while transferring the name of your property to another person. This is the fee that is levied by the state government on the documents you need to register your property. An individual has to pay stamp duty while registering a property as it is mandatory under section 3 of the Indian Stamp Act, 1899. This stamp duty may differ from one state to another.

The state government garners the stamp duty paid to validate your registration agreement. A registration document with stamp duty paid showcases the legal document to prove your ownership of the property to the court. It is very important to pay the full stamp duty charge.

How to Pay Stamp Duty and Registration Charges?

You can pay these charges in the sub-registrar’s office by following these steps:

You have to purchase impressed stamps from the treasury or authorised stamp vendors
Purchase adhesive stamps
Make a payment to the government through DD/pay order or from any nationalised Bank
The payment may take two months of the date of execution and get certified by the jurisdictional district or sub-registrar

How to Pay Stamp Duty Online?

Paying stamp duty online is the easiest and the best way to pay stamp duty.

Visit e-stamping website - www.shcilestamp.com
If you are a first time user then register yourself, as user registration is mandatory
You need to submit valid information like phone number, email id and so on
Enter your credentials to create a user id and password
Once you have completed the registration process, you will receive an activation link on your email id. Click on the link and your account will be activated.
Now, you have to select your ‘State’ from the state drop-down menu. After this, select the nearest SHCIL Branch. Enter your mandatory details like First Party Name, Second Party Name, Article no, Stamp duty paid by and Stamp duty amount. After entering all these details it will help you generate an online reference acknowledgement number.
You have to take the print out of the online reference acknowledgement number and visit the nearest stockholding branch to take a final printout of the e-stamp certificate

Stamp Duty Calculator Online

You can find many stamp duty calculators online, which will generate the amount you need to pay for your registered property. All you need to do is enter basic information about state and property value.

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Essential Factors of Stamp Duty

The stamp duty charges rely on these several factors mentioned below:

The property’s age

The stamp duty is calculated on the total value of the property because the age of the property plays a significant role in managing stamp duty charges. Mainly the old properties are less expensive as compared to the new property.

Age of the property holder

Senior citizens usually pay less stamp duty in most cities. This is why the age of the property holder plays an important role in determining stamp duty charges.

Type of property

It is very important to see which type of property you own because Flat and apartment owners pay more stamp duty charges as compared to independent houses.

Gender of the owner

Women usually pay less stamp duty charges as compared to men in India. Men have to pay more than 2 percent compared to a woman.

Purpose of Property

Commercial property lures higher stamp duty charges compared to a residential property. Usually, commercial property has a lot more amenities compared to residential property.

Location of property

The location is also another important aspect of stamp duty because property located in urban areas attracts higher stamp duty compared to rural areas.

Amenities

The stamp duty charged is based on the amenities of the property. A building with more amenities requires higher stamp duty fee while the building with lesser amenities will have lower stamp duty.

Amenities like hall, swimming pool, club, gym, sports area, lifts, children area, etc. These amenities attract higher stamp duty charges.

Stamp Duty Charges in the Indian States

As a rule, stamp duty and registration charges are not incorporated in the Home Loan amount approved by lenders.

Almost majority of cities stamp duty rates varies from each other:

States	Stamp Duty Rates
Andhra Pradesh	5%
Arunachal Pradesh	6%
Assam	8.25%
Bihar	Male to Female- 5.7%, Female to Male- 6.3%, Other Cases-6%
Chhattisgarh	5%
Goa	Up to Rs 50 lakh - 3.5%, Rs 50 - Rs 75 lakh - 4%, Rs 75 - Rs 1 crore - 4.5%, Over Rs 1 crore - 5%
Gujarat	4.9%
Haryana	For male - 6% in rural areas, 8% in urban areas. For female - 4% in rural areas & 6% in urban areas
Himachal Pradesh	5%
Jammu and Kashmir	5%
Jharkhand	4%
Karnataka	5%
Kerala	8%
Madhya Pradesh	5%
Maharashtra	6%
Manipur	7%
Meghalaya	9.9%
Mizoram	9%
Nagaland	8.25%
Odisha	5% (Male), 4% (Female)
Punjab	6%
Rajasthan	5% (Male), 4% (Female)
Sikkim	4% + 1% (in case of Sikkimese origin), 9% + 1% (for others)
Tamil Nadu	7%
Telangana	5%
Tripura	5%
Uttar Pradesh	Male - 7%, Female - 7%-Rs 10,000, Joint - 7%
Uttarakhand	Male - 5%, Female - 3.75%
West Bengal	Upto Rs. 25 lakh - 7%, Above Rs. 25 lakh - 6%

How to Save Stamp Duty Charges?

Stamp duty avoidance is an illegal act it can be menacing for your entire property. But, you can save stamp duty charges, which are legal.

One of the ways to save stamp duty charges is to register the property in the name of a woman. In fact, all states in the country charge between one or two per cent for women. In some states, there is no stamp duty applicable to the woman. So, registering your property in the name of woman will help you save stamp duty or pay less stamp duty charges.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.