Stamp Duty And Registration Calculator

Purchasing a house is a decision that entails a significant amount of expenditure, which is not restricted to the cost of the house but also includes several legally mandatory charges such as Stamp Duty and Registration Charges. If you are planning to purchase a house, you must acquaint yourself with the concept of Stamp Duty and the impact that it has on the overall cost of your house.

Stamp Duty is a tax that is payable on the sale of a property or the transfer of its ownership. Defined under Section 3 of the Indian Stamp Act, 1899, Stamp Duty is levied and collected by the government of the state where the sale/ownership transfer of the property occurs. There are several factors that affect the quantum of the Stamp Duty you shall have to pay on the house purchased by you, including the following:

1. The age of the homebuyer
2. The gender of the homebuyer
3. The state where the property is being sold
4. The state where the ownership of the property is being transferred
5. The consideration value of the property as stated in its Agreement of Sale
6. The state of the property - New or Old

Registration Charge is the fee levied by the government of a particular state on the registration of property documents in their official records. This fee is over and above the Stamp Duty payable on the purchase of a property. Although the rate of Registration Charges varies depending on the state the property is located in, it usually stands at 1 per cent of the property's consideration value.

The total Stamp Duty payable on the purchase of a property in Maharashtra comprises several charges in addition to the Stamp Duty as per the prevailing rate. These charges are composed of a cess which is also referred to as the Transport Surcharge or Local Body Tax. The quantum of this cess varies depending upon the type of area where the property is located.

Cess Payable on The Purchase of Property in Maharashtra

Here is how the Stamp Duty in Maharashtra is computed.

Stamp Duty Calculation formula:

The rate of Stamp Duty varies from one state to another. However, this charge usually hovers in the range of 4 to 7 per cent of the value of a property. Whilst purchasing a house, you shall be legally required to pay both the Stamp Duty and the Registration Charges as per the rates prevailing in the state where the property is located.

It is easy to calculate the Stamp Duty and Registration Charges payable on your property. Let us understand this with the help of an example. Ms Sharanya purchased a house in Mumbai with the consideration value of ₹1 crore in October 2021. The Stamp Duty rates prevailing in Mumbai at the time were 4 per cent for female buyers and 5 per cent for male buyers, and the Registration Charges were 1 per cent of the value of the property or ₹30,000 (whichever is lower).

Furthermore, the applicable rate of Transport Surcharge (included in the Stamp Duty) was 1 per cent of the consideration value of the property. Here is how the total Stamp Duty and Registration Charges payable by Ms Sharanya were determined.

The purchase of the aforementioned property, thus, cost Ms Sharanya a total of ₹1,04,30,000.

The Stamp Duty Rates in Mumbai are determined on the basis of the provisions of the Maharashtra Stamp Act, 1958, and the Stamp Duty rates announced by the Government of Maharashtra. In April 2020, the state government announced the reduction of the Stamp Duty payable in Mumbai from 5 per cent of the consideration value of the property to 2 per cent effective from September 1, 2020 to December 31, 2020, and to 3 per cent from January 1, 2021 to March 31, 2021.

The present rates of Stamp Duty and Registration Charges applicable in Mumbai are as follows:

Present Stamp Duty and Registration Charges in Mumbai

You can claim a deduction on your Income Tax obligation for the Stamp Duty and Registration Charges paid by you. Under Section 80C of the Income Tax Act, 1961, you can get a tax deduction to the tune of ₹1.5 lakhs for the payment of Stamp Duty and Registration Charges on the purchase of a property. However, the total deductions you claim under this section are subject to a maximum ceiling of ₹1.5 lakhs.

Furthermore, if you are the co-owner of a property, you can claim a tax deduction for the payment of Stamp Duty and Registration Charges on a proportionate basis, that is, on the basis of your share in the payment of Stamp Duty and Registration Charges.

The payment of Stamp Duty on Property is a statutory requirement. You can make this payment through three modes, namely:

1. E-Stamping
2. Physical Stamping
3. Franking

Let us discuss all the above modes of payment of Stamp Duty on property:

• 1) E-Stamping:

  As its name suggests, E-Stamping is the use of electronic media for the process of payment of Stamp Duty. If you opt for E-Stamping, you need not go engage in any paperwork to complete this payment. All you have to do is visit the website of the Stockholding Corporation of India and select the state, city, and exact location of the property you are purchasing.
  
  You can make the payment of the applicable Stamp Duty through an online mode of payment, for instance, Debit Card or Internet Banking. After the successful completion of this payment, you shall receive an e-stamp certification that serves as legal evidence of your having paid the Stamp Duty.
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  2) Physical Stamping:

  In stark contrast to its electronic counterpart, Physical Stamping is the process of payment of Stamp Duty through the physical purchase of the adequate stamp paper. You can purchase a stamp paper of the applicable value from an authorised seller and complete the process of the physical payment of Stamp Duty on property.
  
  Despite the substantial inroads made by digitalisation in India over the past few years, Physical Stamping remains one of the most common modes of payment of Stamp Duty on property.
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  3) Franking:

  You can also make the payment of the Stamp Duty payable on your property through an intermediary who is an Authorised Franking Agent. This service is rendered by banks and financial institutions as well. Therefore, if you have taken a home loan, your banking partner can assist you with this process. However, the utilisation of this service attracts a charge that is the commission for the Franking Agent.

While making the payment of Stamp Duty and Registration Charges on a property, you must have certain documents handy. Here is a list of the documents required for the payment of Stamp Duty online and offline:

1. Agreement of Sale
2. Sale Deed
3. Khata Certificate
4. A copy of the Society Share Certificate, Society Registration Certificate, and No-objection Certificate from the Apartment Association (for a housing project)
5. A copy of the Builder-Buyer Agreement, Sanctioned Building Plan, and Possession Letter (in case of an under-construction property)
6. Title documents of the land, the records of tenancy, etc. (in case of purchase of land)
7. A copy of the Joint Development Agreement between the landowner and the builder (in case of a property with joint development)
8. A copy of all the previously registered documents (in case of the resale of a property)
9. Receipts of the tax paid for the past three months
10. Your latest bank account statement
11. Encumbrance Certificate
12. Power of Attorney (if applicable)

The registration of immovable property in India is governed by the Registration Act, 1908. This act has made the registration of the sale of any property whose value is in excess of ₹100 legally mandatory. The same principle applies to the resale and transfer of property. Therefore, the sale/transfer of all immovable properties in India needs to be registered in compliance with the provisions of the above act.

The purchaser and the seller of a property need to be present at the time of its registration. The registration documents are required to be submitted to a Sub-registrar authorised to carry out the registration. During this process, you need to furnish the official evidence of the payment of Stamp Duty as per the applicable Stamp Duty Rates.

In order to ascertain the Stamp Duty and Registration Charges payable on the property being purchased by you, you can use the relevant state government department's Stamp Duty and Registration Charges Calculator. The Stamp Duty Calculator 2021 takes into account the prevailing Stamp Duty Rates in the state. The property registration charges, determined by the respective state governments, usually stand at 1 per cent of the consideration value of the property. You must know the Stamp Duty payable on your home loan before taking said loan.

• What is Stamp Duty?

  Stamp Duty is a tax levied by the government of a state on the sale or ownership transfer of a property located therein. The Stamp Duty Rates are determined by the respective state governments, and the Stamp Duty payable on the sale/transfer of a property is usually between 4 to 7 per cent of its consideration value.

• What is a Stamp Duty and Registration charges calculator?

  A Stamp Duty and Registration Charges Calculator is a tool that helps homebuyers compute the amount of the Stamp Duty and Registration Charges payable on the property being purchased by them. This calculator takes into account your age, gender, the location of the property, as well as its consideration value to arrive at the total Stamp Duty and Registration Charges payable by you.

• How are Stamp Duty and Registration charges calculated in Maharashtra?

  The Stamp Duty and Registration Charges payable in Maharashtra are determined by the state government in compliance with the provisions of the Maharashtra Stamp Act, 1958. These rates vary based on the area where the property is located - urban or rural. At present, the Stamp Duty and Registration Charges rates prevalent in Maharashtra are as follows:

  Area	Stamp Duty	Registration Charges
  Mumbai (City and Suburban Areas)	5.0 per cent of the consideration value of the property	1 per cent of the consideration value of the property or ₹30,000 (whichever is lower)
  Nagpur Municipal Corporation	6.5 per cent of the consideration value of the property
  Other Urban Areas	6.0 per cent of the consideration value of the property
  Rural Areas under NIT Area and Within the Influential Zone	4.5 per cent of the consideration value of the property
  Rural Areas under NIT Area and Beyond the Influential Zone	5.5 per cent of the consideration value of the property
  Rural Areas Under the MMRDA	5.0 per cent of the consideration value of the property
  Other Rural Areas	4.0 per cent of the consideration value of the property

  Note- These rates are indicative and remain subject to change depending the laws and Government guidelines/circulars/resolutions, applicable at the time being.

• Are Stamp Duty and Registration charges included in home loan?

  No, Stamp Duty and Registration Charges are not a part of the home loan amount sanctioned to homebuyers. Since these charges are additional fees that need to be paid by the homebuyers and are not a part of the cost of the housing property, they are not included in your home loan.

• Can a tax deduction be claimed for Stamp Duty?

  Yes, you can claim a tax deduction of up to ₹1.5 lakhs on the Stamp Duty paid by you on the purchase of a property. This deduction is available under Section 80C of the Income Tax Act, 1961.

• Does Stamp Duty include GST?

  No, the Stamp Duty payable on the sale/transfer of a property does not include GST. The amount of Stamp Duty payable by you depends on the following factors:

  1. Your age
  2. Your gender
  3. The consideration value of the property
  4. The state where the property is located
  5. Whether the property is old or new.

• How to pay Stamp Duty?

  You can pay Stamp Duty directly through an online mode or an offline mode. These modes are known as E-Stamping and Physical Stamping, respectively. However, if you wish to pay Stamp Duty through an intermediary, you can do so by seeking the services of an Authorised Franking Agent who shall help you with the process in exchange for a commission.

• What is a Property Registration Charge?

  A Property Registration Charge is a fee charged by the government of a state to include the registry of your property in their official records, thereby making it legal. The property registration charges usually stand at 1 per cent of the consideration value of the property being sold or transferred. These charges vary from one state to another.

• Are Property Registration Charges included in a home loan?

  No, Property Registration Charges are not included in the amount sanctioned for your home loan. This is because these charges are legal fees and not a part of the cost of the property.

Disclaimer – This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only.  We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.