Stamp Duty and Property Registration Charges in Chennai 2024
What is Stamp Duty?
Property stamp duty will be incurred when you transfer ownership of your property to another individual. The state government charges this fee for the paperwork required to register your property. States have different registration fees and stamp duties. Section 3 of the Indian Stamp Act, 1899 mandates that you pay stamp duty when registering a property.
The stamp duty fee is 7% of property market value while the registration charges in the state are 4% of property value. A property buyer is required 11% of property value for the registration of their property.
| Best Builder Project in Chennai |
Factors Raising Your Stamp Duty Costs
1.Property's Age:
The age of the property is important in determining the stamp duty charges you must pay. Because stamp duty is calculated as a percentage of the total market value of the property, old buildings usually attract lower stamp duty charges while new buildings attract a higher charge.
2. Property’s location:
Be ready to pay a high stamp duty if your property is situated in a posh urban area or a municipal locality. You will pay less to have your property stamped if it is situated outside of the town or within Panchayat limits.
3.The owner's gender:
If the property is registered in the name of the woman, she is eligible for a stamp duty discount, just like senior citizens are. The cost difference between men and women for the stamping of property registration documents is approximately 2%.
4. Age of Owner:
Stamp duty charges for senior citizens have been subsidized by nearly all state governments. Thus, the owner's age has a significant impact on the charge.
Stamp duty and registration fees in various Indian cities
|
City |
Stamp Duty Charges |
Registration Charges |
|
Bangalore |
2% to 5% |
1% of the property value |
|
Delhi |
4% to 6% |
1% of the deal value |
|
Mumbai |
3% to 6% |
1% of the property value |
|
Chennai |
1% to 7% |
1% to 4% of the property value |
|
Kolkata |
5% to 7% |
1% of the total property value |
| Luxury Flats in Chennai |
How Do Stamp Duty Charges Get Calculated?
1.considering the total market value of the property. If the market value of your property is high, you will be charged a high fee, and vice versa. If you have both the market value and the agreement value of the property, the higher of the two will be charged.
2. In addition to the property's price or value, other factors that affect these costs include the property's type, location, owner's gender and age, usage, and number of floors.
3.Officials in charge of stamp duty typically estimate the property's value using Stamp Duty Ready Reckoner. The concerned state government releases the Stamp Duty Ready Reckoner on January 1st of every year.
FAQ
1.Are stamp duty charges refundable?
No, stamp duty charges are not refundable.
2.Can I claim stamp duty as tax deduction?
Yes, under Section 80C of the Income Tax Act, stamp duty is deductible from taxes up to a total of Rs.1,50,000.
3.Is GST included in stamp duty?
GST and stamp duty have been separate taxes paid on the sale of real estate up until this point.
4.How are registration fees for properties identified?
The market value of the property is the basis for calculating the property registration fees. The registration fee is one percent of the property's value, up to a maximum of Rs. 50 lakh.
— - —
