Stamp Duty and Registration Charges in Hyderabad, TS

Stamp Duty and Registration Charges in Hyderabad, Telangana

‘Stamp duty’ is collected when a property is transferred from one person to another. Ownership of a property is legally transferred from one person to another in Hyderabad only if it is registered by the Telangana state Sub-Registrar Office with the payment of stamp duty and registration fees.

Stamp duty in Telangana

The state government collects stamp duty according to the Indian Stamp Act of 1899. The stamp duty in Hyderabad includes stamp duty fees, registration charges plus transfer duty. It is calculated based on the guidance value (stamp duty value) of the property as per IGRS Telangana.

If ‘Person A’ wants to buy an independent house for ‘X’ amount from ‘Person B’ in Hyderabad, ‘Person A’ will pay the amount of the transaction to ‘Person B’, and then ‘Person B’ carries out a sale deed. ‘Person A’ must then register the sale deed by paying stamp duty fees and registration at the Telangana Sub-registrar’s Office. Once ‘Person A’ pays the stamp duty and the property registration fee, the transaction is recorded in the Sub-Registrar Office, and ‘Person A’ will become the property’s legal owner.

Type of property transaction where one should pay stamp duty and registration charges

At the time of the implementation of a transfer agreement, such as a sale/exchange/gift/partition/lease/transfer/loan deed between two parties, one must pay the stamp duty and registration fees calculated based on the guidance value of the property as per IGRS Telanagana.

Is it mandatory to pay stamp duty?

One must register the sale/transfer of the property and pay the stamp duty and registration fees at the time of registration of the sale/transfer. The stamp duty paid and the state property registration documents are legal proofs proving ownership. Also, these documents are useful in the event of a dispute over property ownership.

One can also obtain a duplicate sale/transfer deed in case of loss of the original deed from the office of the Sub-Registrar claiming your ownership of the property.

Stamp duty and registration charges in Hyderabad/Telangana

When buying a property, the registration and stamp duty charges must also be taken into account. These charges will increase the budget set for the purchase of your property considerably. Under the Indian Stamp Act of 1899, the stamp duty and registration fees are mandated mainly to validate the sale of the property and keep a record of the purchase.

Type	Stamp Duty	Registration Fee	Transfer Duty
Sale Of Property
Under Corporations & Municipalities	5.5%	0.5%	1.5%
In Other Areas	5.5%	0.5%	1.5%
Apartments/Villas	5.5%	0.5%	1.5%
Sale Agreement & GPA	5.5%	0.5% (max INR 20,000)	0%
Sale Agreement With Possession	5.5%	0.5% (max INR 20,000)	0%
Sale Agreement Without Possession	0.5%	0.5% (max INR 20,000)	0%

How to calculate Hyderabad/Telangana stamp duty and registration charges?

Let us consider that a residential flat in Hyderabad costs INR 3,000 per Sqft in a particular area as per IGRS Telangana stamp duty value. This means that no flat sold in this area can be sold for less than INR 3,000, but can be sold at a higher price.

Criteria 1:

Let’s say ABC bought a 1000 Sqft flat at INR 6,000 per Sqft in the same area.

Therefore, the property’s consideration value will be INR 6,000 times 1000 = INR 60,00,000

Total registration charges = Stamp duty charges (5.5%) + Registration fee (0.5%) + Transfer duty (1.5%) * Property consideration value (INR 60,00,000)

The property’s stamp duty is 5.5% of the consideration value (INR 60,00,000 lakh) = INR 3,30,000

The property registration fee will be 0.5% of the consideration value (INR 60,00,000 lakh) = INR 30,000

Transfer duty charges will be 1.5% of the consideration value (INR 60,00,000 lakh) = INR 90,000

The total charges will therefore amount to INR 3,30,000 + INR 30,000 + INR 90,000 = INR 4,50,000

In order to obtain the property, ABC will therefore have to pay a total of INR 60,00,000 + INR 4,50,000 = INR 64,50,000

Criteria 2:

In case of consideration value being lower than the stamp duty value, stamp duty will be calculated based on the stamp duty value of the property.

Let’s say the consideration value is INR 2,500 per Sqft, the stamp duty will be calculated on IGRS Telangana stamp duty value i.e., INR 3,000 per Sqft. which amounts to 3000 times 1000 Sqft = INR 30,00,000

So, the total charges, in this case, will therefore amount to INR 1,65,000 + INR 15,000 + INR 45,000 = INR 2,25,000

In order to obtain the property, ABC will therefore have to pay a total of INR 30,00,000 + INR 1,80,000 = INR 32,25,000

*Stamp and transfer duty payable on IGRS Telangana stamp duty value or consideration value of the property, whichever is higher.

Documents required for property registration in Hyderabad/Telangana

Several documents are required to register a property in Hyderabad. The list of documents required are:

1. Proof of identity (Aadhaar card, PAN card, driving license, voter ID, passport, etc., both from the buyer and the seller.)
2. Receipt or DD, which acts as proof of payment for stamp duty, transfer duty, and registration fees
3. Section 32A form of applicants/witnesses/executives
4. ID cards and photos of two credible witnesses
5. GPA/SPA (General Power of Attorney/Special Power of Attorney) documents
6. A photo showing the property’s front view

Aspects that determine the charges of stamp duty

Property type: Stamp duty for residential properties are often less than for commercial properties. This is because commercial properties typically need far more amenities than residential properties, and therefore a higher stamp duty fee is applied to commercial properties.

Property age: Since the stamp duty is based on the total value of the property, the age of a particular property plays an important role in determining the stamp duty charges. Since newer properties are more likely costlier than older properties, they attract a higher stamp duty charge than older ones.

Property owner’s age: In determining the stamp duty charges, an individual’s age is important because older people receive a rebate on the stamp duty.

Property owner’s gender: Men pay a higher stamp duty fee compared to women. Women receive a subsidized stamp duty fee.

Property Location: Stamp duty charges differ from location to location. For example, a property located in Banjara Hills will attract more charges than a property located in Alwal.

One can calculate Stamp duty, transfer duty, and registration fee by using Market Value Assistant and by referring to rates in IGRS Telangana.

Ready Reckoner for Stamp Duty, Transfer & Registration Fees

S.No.	Deed Name	Document	Stamp Duty	Transfer Duty	Registration Fees	Chargable Value
1	Sale	Sale Deed (in Gram Panchayath)	5.5%	0.00%	2.00%	MARKET VALUE (OR) CONSIDERATION WHICH EVER IS HIGHER
2		Sale Deed (in other areas)	5.50%	1.50%	0.50%	MARKET VALUE (OR) CONSIDERATION WHICH EVER IS HIGHER
3		Sale Agreement With Possession	5.50% (5.50% Adjustable)	0.00%	0.5% (Minimum Rs.1,000/-and Maximum 50,000/-)	MARKET VALUE (OR) CONSIDERATION WHICH EVER IS HIGHER
4		Sale Agreement Without Possession	0.50% (Not adjustable)	0.00%	0.50% (Minimum Rs.1,000/-and Maximum 50,000/-)	MARKET VALUE (OR) CONSIDERATION WHICH EVER IS HIGHER
5		Agreement of Sale cum General Power of Attorney	6.50% (5.50% Adjustable)	0.00%	0.5% subject to a minimum of Rs.5,000/- and maximum of Rs.1,00,000/-	MARKET VALUE (OR) CONSIDERATION WHICH EVER IS HIGHER
6		Conveyance	5.00%	0.00%	0.50%	MARKET VALUE (OR) CONSIDERATION WHICH EVER IS HIGHER
7		Certificate of Sale	5.00%	0.00%	0.50%	VALUE EQUAL TO THE AMOUNT OF PURCHASE MONEY
8		Development / Construction Agreement cum GPA	1.00% (not adjustable)	0.00%	0.50% subject to a minimum of Rs.5000/- and maximum of Rs.1,00,000/-	Land value or the estimated cost of the proposed construction /development of the property whichever is higher
9		Development/Construction Agreement	0.50% (not adjustable)	0.00%	0.50% ( Subject to a minmum of Rs.5000/- and maximum of Rs.50,000/-)	Land value or the estimated cost of the proposed construction /development of the property whichever is higher
10	Gift	(i) Gift in favour of Family Member (a) Property falling in any area except Gram Panchayat	2.00%	0.50%	0.5% subject to a minimum of Rs.2,000/-and maximum of Rs.25,000/-	MARKET VALUE OF THE PROPERTY
11		(b) Property falling in Gram Panchayat	2.00%	0.00%	0.5% + (0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.25,000/-)	MARKET VALUE OF THE PROPERTY
12		(ii) Gift in favor of Person other than Family Member. (a) Property falling in any area except Gram Panchayat	5.00%	1.5%	0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.1,00,000/-	MARKET VALUE OF THE PROPERTY
13		(b) Property falling in Gram Panchayat	5.00%	0.00%	1.5% + (0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.1,00,000/-)	MARKET VALUE OF THE PROPERTY
14		(iii) Gift in favour of Government/Gram Panchayat/Municipality/Municipal Corporation/UDA/ IALA	0.00%	0.00%	0.5% subject to a minimum of Rs.2,000/-and maximum of Rs.10,000/–	MARKET VALUE OF THE PROPERTY
15	Settlement	(i) Settlement in favour of Family Member	2.00%	0.00%	0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.25,000/-	MARKET VALUE OF THE PROPERTY
16		(ii) Settlement in favour of person other than Family Members	3.50%	0.00%	0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.1,00,000/-	MARKET VALUE OF THE PROPERTY
17		(iii) Settlement in favor of Government/Gram Panchayat/ Municipality/Municipal Corporation /UDA/ IALA	0.00%	0.00%	0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.10,000/-	MARKET VALUE OF THE PROPERTY
18	Mortgage	Mortgage without Possession	0.50%	0.00%	0.10%	Mortgage/MOU
19		Mortgage with Possession (in Gram Panchayath)	2.00%	0.00%	1.60%	Mortgage/MOU
20		Mortgage with Possession (in other areas)	2.00%	1.50%	0.10%	Mortgage/MOU
21		Deposit of Title deeds	0.5% (Subject to a maximum of Rs.50,000/-)	0.00%	0.10% (Subject to a maximum of Rs.10,000/-)	Mortgage/MOU
22	General Power of Attorney	General Power of Attorney authorising family member to sell , Transfer or Develop immovable property	Rs.1000/-	0.00%	0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.20,000/-	Market Value of the property
23		General Power of Attorney authorising agent to sell , Transfer or Develop immovable property outsiders (Other than family)	1.00%	0.00%	0.5% subject to minimum of Rs.5,000/- and maximum of Rs.1,00,000/-	Market Value of the property
24		General Power of Attorney purpose other than authorising sell, transfer or develop immovable property
25		a) Authorising not more than five persons	50/-	0.00%	5,000/-	NA
26		b) Authorising more than five, but not more than ten persons	75/-	0.00%	5,000/-	NA
27	Special Power of Attorney		20/-	0.00%	3,000/-	NA
28	Exchange	Exchange (in Gram Panchayath)	5.00%	0.00%	2.00%	MARKET VALUE OF THE PROPERTY With Higher VALUE
29		Exchange(in other areas)	5.00%	1.50%	0.50%	MARKET VALUE OF THE PROPERTY With Higher VALUE
30	Partition	Partition among family Members	0.50%, subject to a maximum of Rs. 1,00,000/-	0	2000/-	ON VALUE OF SEPERATED SHARE
31		Partition outside family	2.50%	0.00%	0.5% subject to a minimum of Rs.2,000/- and maximum of Rs.1,00,000/-	ON VALUE OF SEPERATED SHARE
32	Will		0/-	0.00%	3,000/-	NA
33	Lease
	(a)	i) for less than 1 year	0.40%	0.00%	0.20%	on total rent
		ii) for 1-5 years
		For residential properties	0.50%	0.00%	0.20%	on Average Annual Rent
		In other cases	1.00%	0.00%	0.20%	on Average Annual Rent
		iii) For 5-10 years
		For residential properties	1.00%	0.00%	0.20%	on Average Annual Rent
		In other cases	2.00%	0.00%	0.20%	on Average Annual Rent
		iv) For 10-20 years	6.00%	0.00%	0.20%	on Average Annual Rent
		(v) for 20-30 years	15.00%	0.00	0.20%	on Average Annual Rent
		(vi) For more than 30 years or in perpetuity	3.00%	0.00%	0.20%	Market Value of the property
	(b)	For fine, premium or money advanced without rent	2.00%	0.00%	0.20%	Fine , Premium or money advanced
	(c)	For fine, premium or money advanced in addition to the rent	2.00%	0.00%	0.20%	Fine , Premium or money advanced in addition to the duty payable on the rent
	(d)	involving improvements, to be made over to lessor at the end	2.00%	0.00%	0.20%	Value of improvements