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A deeper focus on stamp duty and registration charges
Posted on: 10/Sep/2018 4:47:50 PM
In our previous article, we had briefed you about stamp duty and registration charges and why you are liable for either of them. Now that you’ve got a fair understanding, here is more on the same topic:
Consider that you have chosen to purchase a new property in Chennai city. In such a case, you will not just have to pay towards the property rate, but also bear with the stamp duty and registration charges. Hence, the latter two will also get added to the overall property value.
Considering Chennai city, regardless of whether the area of property purchase is urban or rural, the stamp duty and registration fee remain the same. Likewise, it makes no difference in charges when the buyer is female or male.
Remember – it is the government that decides the property’s market value aka guideline value. This value varies based on the area or zone where the property lies.
Let’s jump into an example for a better understanding of the concept
Say, Vinay has purchased a property in Chennai that is worth Rs 20 lakh. So, as per government rules, he will be liable to paying
1% of Rs 20 lakh towards registration fee – Rs 20,000
7% of Rs 20 lakh towards stamp duty – Rs 1,40,000
Hence, the overall sum Vinay will be supposed to pay towards the property purchase is Rs 21,60,000.
Here arises a question! What is the case with property resale? There is the same 1 percent charges towards registration for resale property and 7 percent towards stamp duty.
