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Stamp duty & registration Charges

Real Estate

Stamp duty and registration charges in Delhi

 

Buying your dream house is an exciting journey, from touring various places to imagining your life there before zeroing in the one. A new home brings with it a new adventure, a new lifestyle but also taxes and stamp duty along with others. It could be a daunting experience, especially if you are a first time home buyer. We’ll decode it for you so your property purchase becomes effortless without the taxation hassle as it is an integral part of buying a place. 

 

The Registration Act 1908

 

The Registration Act of 1908 obliges the purchaser of the property to pay the stamp duty at the time of registration of the property. By means of the registration process, the ownership of the property is transferred from the old to the government records in the name of the new purchaser. 

 

Rate

Stamp Duty and Registration Charges are two key factors that make up a significant part of the expenditure when purchasing a property in Delhi. However, with a view to growing home-ownership, the stamp duty in Delhi is held lower for women buyers. It is the government’s way of advocating women to own a house. There is also a reduction in the Stamp Duty and Registration Charges if you want to purchase a property jointly, a man and a woman. To be specific, the Stamp Duty rate for a male is 6 percent, while it is only 4 percent if you are a woman. In case you plan to buy joint property, the rate of Stamp duty would be 5 percent. But, the Registration Charges stay at 1 percent in either case. 

 

Factors

Not just varying rates for each gender, there are various other factors that affect the Stamp Duty Charges in Delhi. The location of the property is one such factor. The circle rate in Delhi for residential plots is dependent on the category of the location. Also, the purpose of the purchase matters. The stamp duty applied to a commercial property is greater than that applicable to a residential property. The age of the property also matters. As the stamp duty is imposed on the value of the property, the old houses, due to their low price, are subject to a lower stamp duty than the comparatively new ones.

 

Payment

E-stamp papers were introduced on 6th February 2012 in India and Delhi became the first state in the country to issue e-stamps. With the government implementing e-stamping, stamp duty must be charged by e-stamping in Delhi. Consequently, there are no offline networks by which this obligation can be paid. The e-stamp paper can be collected through selected Corporation bank or visit Stock Holding Corporation of India Limited (SHCIL), the agency appointed by the centre. If you are working through the ACC, you may also pay the stamp duty in cash. You may also pay the fund via check / demand / deposit / pay order / RTGS / NEFT / account transfer.