Homebuyers in India must pay imprint duty along with the registration fee at the time of stuff registration in the sub-registrar’s office. This raises the question, why are there two different responsibilities? Is brand duty and registration fee the same thing? If not, is gainful both mandatory?
What is stamp duty?
Property buyers in India must pay a stamp duty to their state’s revenue section at the time of registration. The stamp duty is paid to obtain non-judicial stamp papers issued by the state government. All rules and guidelines related to stamp papers and stamp duty are explained in the Indian Stamps Act.
What is a registration fee?
Registration charge is the fee purchasers must pay to the authorities to avail of the property registration services. All instructions and regulations related to registration are enlarged in the Registration Act, of 1905.
How are the two different?
Land in India is a state subject. To levy and collect taxes on dealings related to land and property, states have been given the control to issue and sell stamp paper. Stamp papers give legal validity and enforceability to stuff-related agreements made between two parties. Stamp duty is thus the fee a homebuyer pays to obtain stamp papers of suitable worth from the revenue section.
Property registration quantities to a great deal of paperwork on the part of the revenue section. In that sense, the registration fee is more of a facility charge paid to the state.
Which laws in India regulate stamp duty and registration fees?
Takes from stamp duty and registration fees are measured under the Indian Stamp Act 1899, and the Registration Act, 1908, while the twin tasks are enclosed and altered by states.
While charging o stamp duty is completely a state subject, registration of deeds and passes is included in the Concurrent List of the Constitution. The power to establish on this subject is thus vested in both the Union Legislature and the national legislature.
What is the variance between stamp duty and registration fee rates?
States levy dissimilar stamp duties on diverse instruments related to stuff transactions. Stamp duty and property transactions vary from state to state. With a state, stamp duty and property transactions vary from instrument to instrument. For example, in most states, stamp duty on a sale action would typically be more advanced than the stamp duty on, say, a Will or power of attorney.
Stamp duty in significant Indian states
States - Stamp duty (as a percentage of transaction value)
Andhra Pradesh - 5%
Arunachal Pradesh - 6%
Assam - 6%
Bihar - 6%
Chhattisgarh - 5%
Goa - 3-6%, based on transaction value
Gujarat - 4.90%
Haryana - 5-7% depending on area
Himachal Pradesh - 6%
Jharkhand - 4%
Karnataka - 3-5%, based on transaction value
Kerala - 7%
Madhya Pradesh - 8%
Maharashtra - 3-6% founded on transaction value
Manipur - 4%
Meghalaya - 9.90%
Mizoram - 5%
Nagaland - 8.25%
Odisha - 5%
Punjab - 7%
Rajasthan - 6%
Sikkim - 5%
Tamil Nadu - 7%
Telangana - 4%
Tripura - 5%
Uttarakhand - 5%
Uttar Pradesh - 7%
West Bengal - 3-5% based on property value
Delhi - 6%
Property registration fee in Indian states
Although maximum states charge 1% of the property value as the registration fee, some other states levy a industrialized charge.
Registration fees in key Indian states
State - Registration fee (as a proportion of transaction value)
Andhra Pradesh - 1%
Arunachal Pradesh - 1%
Assam - 8.5%
Bihar - 1%
Chhattisgarh - 1%
Goa - 1%
Gujarat - 1%
Haryana - 1%
Himachal Pradesh - 1%
Jharkhand - 1%
Karnataka - 1%
Kerala - 1%
Madhya Pradesh - 2%
Maharashtra - 1%
Manipur - 3%
Meghalaya - 1%
Mizoram - 1%
Nagaland - 1%
Odisha - 1%
Punjab - 1%
Rajasthan - 1%
Sikkim - 1%
Tamil Nadu - 2%
Telangana - 1%
Tripura - 1%
Uttarakhand - 1%
Uttar Pradesh - 1%
West Bengal - 1%
Delhi - 1%
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