Property Transfer Charges in India: Everything You Need to Know

Property transfer fees are crucial in real estate transactions in India whenever purchasing a new home. Whether you are buying or selling a home, it is critical to understand these fees to make informed decisions. This page seeks to provide a thorough explanation of property transfer charges, including their various categories, associated expenses, and ways for minimizing them. By understanding this element, you will be able to manage the property transfer procedure more effectively and ensure a smoother transaction.

What is property transfer? 

In simple words when a person wants to transfer his property to any other person by following the guidelines provided by the government it is called Property transfer. Property transfer charges are different from state to state. Nowadays Buying a new property is more easier rather than registering that property So whenever you are planning to buy a Property or before spending your hard-earned money you must be aware of the different charges and other home-buying processes which will help you buy your dream property stress-free. Even different states or cities like tier 1 2 3 cities in India have different changes of buying property.

What is property transfer? 
Source – damore-law.com 

What are property transfer charges state-wise in India?

Property transfer Charges are mandatory for every citizen who wants to transfer his/her property. Charges of property transfer vary from state to state. Charges under the Transfer of property act 1882 define Real estate as broadly classified into 2 categories Movable property and Immovable property. As per the Indian government who wants to transfer his immovable property he is chargeable for property transfer. The location of the property affects the price of the property, and when you select the locations which are best for living and work the absolutely it will be directly affected by the stamp duty and registration charges.

Stamp Duty and Registration Charges in India

After the purchase of the property, two major costs will be added to your expenses, stamp duty, and one-time registration charges. Under Section 3 of The Indian Stamp Duty Act, of 1899. The price quoted by a builder to you is not the final amount.

States

Stamp Duty Rates

Registration Charges

Andhra Pradesh

6% on the market value of property

0.1%  To 0.5%

Arunachal Pradesh

6%

1%

Assam

For Male is 6% 

For Females is 5%

For male and female 

(More than 5 lakh is 8.5%)

Bihar

For Females is 5.7%

For Male is 6.3%

For Other cases - 6%

2%

Chhattisgarh

For Male is 5% 

For Females is 4% 

For Joint ownership is 4%

4%

Goa

Rs 0 To Rs 50 lakh is 3%

Rs 51 lakh to Rs 75 lakh is 4%

Rs 76 lakh To Rs 1 crore is 4.5%

More than Rs 1 crore is 5%

Rs 0 To Rs 75 lakh is 3%

Rs 76 To Rs 1 crore is 3.5%

More than Rs 1 crore is 3.5%

Gujarat

4.90%

1% (0 charges for females)

Haryana

Urban Area-

7% for male

5% for female 

6% for Joint ownership

Rural Area-

5% for male

3% for female 

4% for Joint ownership

Rs 0 to Rs 50000 is Rs 100

Rs 50,001 to Rs 5 lakh is Rs 1000

Rs 5 lakh to Rs 10 lakh  is Rs 5000

Rs 10 lakh to Rs 20 lakh is Rs 10000

Rs 20 lakh to Rs 25 lakh is Rs 12500

Rs 25 lakh is Rs 15000

Rs 25 lakh to Rs 40 lakh is Rs 20000

Himachal Pradesh

For Male is 6% 

For Females is 4% 

For Joint ownership is 5%

For Male is 2% or Rs 25000 whichever is higher 

For Females is 2% or Rs 15000 whichever is higher 

For Joint ownership, 2% or Rs 15000 whichever is higher 

Jammu and Kashmir

Male - 7%

Female - 3%

Male + Male - 7%

Male + Female - 7%

Female + Female - 5%

1.20%

West Bengal

Urban Area-

Less than Rs 1 crore is 4%

More than Rs 1 crore is 5%

Rural Area-

Less than Rs 1 crore is 3%

More than Rs 1 crore is 4%

1%

Uttarakhand

Male - 5%

Female - 3.75%

Male + Male - 5%

Male + Female - 4.37%

Female + Female - 3.75%

2%

Uttar Pradesh

Male - 7%

Female - 6%

Male + Male - 7%

Male + Female - 6.5%

Female + Female - 6%

1%

Tripura

5%

Telangana

4%

0.5%

Tamil Nadu

7%

4%

Sikkim

For Sikkimese origin is 5%

For Others is 10%

Rajasthan

For Male is 6% 

For Females is 5%

1%

Punjab

Male - 4.7% 

Females - 2.75%

Male + Female - 3.75%

1%

Jharkhand

4%

3%

Karnataka

Rs 0 To Rs 20 lakh - 2%

Rs 21 To Rs 45 lakh - 3%

More than Rs 45 lakh - 5%

1%

Kerala

8%

2%

Madhya Pradesh

7.50%

3%

Maharashtra

Urban- 6%

Suburban- 5%

Rural- 4%

1% for Less than 30 lakh

Rs 30000 for more than 30 lakh

Manipur

7%

3%

Meghalaya

9.90%

Mizoram

Mizoram

9%

Nagaland

8.25%

Odisha

For Male is 5% 

For Females is 4%

2%

Factors that affect your stamp duty Charges?

Various factors affect stamp duty charges and they differ from state to state, person to person, gender to gender, etc. In a few states where the stamp duty rate is low for females such as Assam, Bihar, Haryana, Punjab, and many more. The commercial property stamp rate is high compared to residential property. 

Age of the owner

The charges of the stamp duty depend upon the age of the person, and on whose name the property is being transferred. In case the buyer belongs to a senior citizen so there is an advantage for the buyer for paying less stamp duty compared to others. Charges may differ from state to state. 

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Gender of the owner

The charges of the stamp duty depend upon the gender of the person. Just like a senior citizen If the property is registered in the name of a woman and she wishes to transfer her property to anyone so she will get some amount of concession. This facility does not apply to all Indian citizens. States like Maharashtra, Bihar, Jharkhand, and Kerala. The charges are the same for men and women.

Age of the Property

The charges of the stamp duty depend upon the age of the property. If the buyer is purchasing old property so there are chances of less stamp duty and vice versa.

Location of the property 

The location of the property plays a vital role in the charge of stamp duty. If you are a citizen of an urban area like Mumbai, Kolkata, or Bangalore, the stamp duty is higher than compared to rural areas.

In urban areas like Mumbai, Kolkata, and Bangalore, the stamp duty – a tax paid on property transactions – tends to be higher than in rural regions. This is due to the city like Mumbai have expensive house values and demand in cities.

But when you looking for the best return on your investments, then you must ignore the stamp duty charges and go for the Smart Cities to invest your precious money.

Type of property

Stamp duty depends upon the which type of property you are planning to buy like a flat, land, villa, and independent house. Charges may differ for each property.

Usage of property

It depends upon the usage of the property. Either is purchased for residential purposes or commercial purposes. Charges are always higher for commercial properties as compared to residential properties.

Project amenities

If you purchase a property and they offer you exclusive amenities like Club house, transport facility, swimming pool, gym, community hall, garden, etc .stamp duty charges are high for this type of property.

How stamp duty calculates

Caption: How stamp duty calculates?

Source – homefirstindia.com

The charges of stamp duty are calculated based on the ready reckoner rate of the property and the rate of property as per the agreement. The other word for ready reckoner rate is circle rate. For example- If the value of the property mentioned in the agreement is Rs 90 lakh and the ready reckoner rate is Rs 1 Cr . so the stamp duty of the property will be calculated on the higher amount (Rs 1 Cr ).

Document required for the payment of stamp duty

According to the type of property, you are required to submit various documents at the time of registration. Here is a list of a document mentioned below, which will help you to submit the document at the time of registration of the new property.

  • Original sale deed of the flat
  • No-objection certificate (NOC) of the society
  • Government-authorized ID Card
  • PAN Card
  • Khata certificate
  • If the property is under construction, sanctioned plan, possession letter, and agreement copy between the builder and buyer.
  • If your property loan is due or not cleared, do submit your latest bank statement.  

The procedure of property transfer

The procedure of property transfer typically involves a series of steps and legal processes to ensure the lawful and documented transfer of ownership from one party to another. While the exact procedure can vary depending on the jurisdiction and specific circumstances, I can provide you with a general overview of the typical steps involved in a property transfer:

Sale deed

Whenever a person is transferring his/her property to one or more persons in the present or future is known as transferring a property. Sale deeds occur only when the property owner is not well, retired, bankrupt, and more. It includes the details of the buyer and seller, rights of the buyer, address of the property, Total area of the property, etc.

Gift deed

Whenever a person voluntarily gifts his/her property to any other person then it’s called a gift deed. In this type of property transfer, there is less chance of any dispute.

Relinquishment deed.

It happens only when the owner of the property expires, and the co-owner wants to transfer his owner property to another co-owner. This type of deed must be registered in court for legal purposes 

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Will deed

If the owner of the property makes a will deed that, after the death of the owner to whom the property will be distributed. and mention all details in a deed. To avoid the dispute in the future between the heirs.  

Settlement deed

It is a legal contract between family members only, specifying that if in the future there is any disagreement happen between them. then they all should follow the same terms and conditions mentioned in the agreement. It includes only close family member who is a part of the property distribution

Now you can clear your stamp duty & Registration Fee In an easy way

Nowadays purchasing a new property is easier than registering of new property. So here we cover all charges of stamp duty and registration in India. These charges differ from state to state. Many factors affect these charges. We can assume the maximum registration charge is 4% and maximum stamp duty charges are between 5% To 10%. Now whenever you buy a Flat in the Smart City or Satellite Cities you can smoothly complete this registration process.

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