‘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 Telangana state Sub-Registrar Office with the payment of stamp duty and registration fees.
Stamp duty in Telangana
The state government collects stamp duty which is governed by the Indian Stamp Act of 1899. The stamp duty in Hyderabad includes stamp duty fee, registration charges plus transfer duty, and 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 in Hyderabad/Telangana?
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 a 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 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||4%||0.5%||1.5%|
|In Other Areas||4%||0.5%||1.5%|
|Sale Agreement & GPA||5%||0.5% (max INR 20,000)||0%|
|Sale Agreement With Possession||4%||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 (4%) + Registration fee (0.5%) + Transfer duty (1.5%) * Property consideration value (INR 60,00,000)
The property’s stamp duty is 4% of the consideration value (INR 60,00,000 lakh) = INR 2,40,000
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 2,40,000 + INR 30,000 + INR 90,000 = INR 3,60,000
In order to obtain the property, ABC will therefore have to pay a total of INR 60,00,000 + INR 3,60,000 = INR 63,60,000
Criteria 2: In case of consideration value being lower than stamp duty value, stamp duty will be calculated based on the stamp duty value of the property.
Let’s say 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 1,20,000 + INR 15,000 + INR 45,000 = INR 1,80,000
In order to obtain the property, ABC will therefore have to pay a total of INR 30,00,000 + INR 1,80,000 = INR 31,80,000
*Stamp and transfer duty payable on IGRS Telangana stamp duty value or consideration value of the property, whichever is higher.
Documents required for property r
egistration in Hyderabad/Telangana
Several documents are required to register a property in Hyderabad. The list of documents required are:
- Proof of identity (Aadhaar card, PAN card, driving license, voter ID, passport, etc., both from the buyer and the seller.)
- Receipt or DD, which acts as proof of payment for stamp duty, transfer duty and registration fees
- Section 32A form of applicants / witnesses / executives
- ID cards and photos of two credible witnesses
- GPA/SPA (General Power of Attorney/Special Power of Attorney) documents
- 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 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.