Stamp duty and registration fees are two extra expenditures for purchasers in Pune. The Registration Act, of 1908 requires that these fees be paid to the government at the time of registration.
The buyers must pay a portion of the property value as stamp duty. The state government adjusts the stamp duty to stimulate or reduce demand. In a sluggish market, rates are lowered to stimulate demand. The move will likely save purchasers money at a time when house demand is low due to the Coronavirus outbreak.
What is Stamp Duty?
Stamp duty is a state-imposed tax on the sale of property/property ownership. It is charged in accordance with Section 3 of the 1899 Indian Stamp Act.
At the time of registration, the stamp duty period will be determined by the value of the house/property. Additionally, it differs according to the state or region in which the property is located, as well as whether it is a new or older home.
Stamp duty is an additional fee you will incur when purchasing immovable property, and it is critical to understand the implications for the kind and location of the house you want to acquire.
Currently, the stamp tax on deeds of transfer is reduced by 3% from September 1 to December 31 and by 2% from January 1 to March 31. In March 2020, the Maharashtra government announced a two-year decrease in stamp duty in Mumbai, Pune, and Nashik, from 6% to 5%.
What are the Stamp Duty Rates in Pune?
Stamp duty rate is crucial information to know when applying for a house loan, which is the ready reckoner rate. Stamp duty is a property transaction tax, while registration fees are ad valorem taxes. Stamp duty is 6% for all buyers, male, female, and joint property owners.
Stamp Duty for Women in Pune
Unlike other states, Maharashtra had no gender-specific stamp duty rates until March 8, 2021, when the state announced a one-percentage-point reduction for the fairer sex. Women can now register property in their names for 2% stamp duty.
How to Calculate Stamp Duty in Pune?
You must pay the rate based on the property’s worth. To determine the property’s worth, you must first determine the local circle rate.
The ready reckoner rate (RR), or circular rate, is the government-fixed rate below which a property cannot be sold in a certain region. Even if the seller has priced the property below the government-set-ready rates, the stamp duty is still calculated using the RR rates.
You can compute the stamp duty by multiplying the circle rate by the property’s area.
Assume Tarun Sharma buys a 300 sq m carpeted house. The property is in Baner for Rs 42,760 per sq m. In this scenario, the property’s total worth is:
(Amount of carpet x rate per sq m)= Property value
400 x 42,760 = Rs 12,828,000
Given that the Pune stamp tax is 5% of the property value, Sharma’s stamp duty bill will be Rs 6,41,400. Considering the property’s value, Sharma will have to pay an extra registration fee of Rs 30,000.
How to Pay Stamp Duty?
The following ways are available for paying stamp duty:
Physical Stamp Paper
This is the most popular method. Authorized merchants sell stamp paper. In this paper, the property registration or agreement information is written. However, if the stamp duty is high, you will need to buy a lot of stamp sheets.
In this method, you need to go to an authorized franking agent, that person will stamp your property paperwork to show that the stamp duty has been paid. This procedure normally requires a minimum quantity. The agency also charges a franking fee, which is subtracted from the total stamp duty due. Most banks provide franking agent services.
Paying stamp duty online via the SHCIL website is the most convenient method (Stock Holding Corporation of India). Simply go to the website, pick your state, fill out the form, and mail it to the collecting center with the needed cash. After payment, you will receive an e-stamp certificate with a UIN (UIN).
Points to Note
- If the document is missing essential information, the valuation officer may recall it.
- Details such as the address of the property, the year of construction, and the number of floors must be specified to accelerate the stamp duty procedure.
- Stamp duty is payable on all real estate sales excluding those made by Will.
- When the applicant transfers the property to a lawful successor, the transfer must be at market value.
- Additionally, the parties to the agreement are required to present all applicable stamp duty documentation. Transfer instruments, partitioning deeds, mortgage conveyances, mortgage deeds, selling certificates, gift deeds, tenancy agreements, license agreements, and lease deeds are examples of these papers.
You should be aware that stamp duty on property registration varies by state. The authorities employ a variety of parameters to compute costs, including the kind of structure or plot involved.