Stamp duty and registration charges are fees or taxes imposed by governments when real estate transactions, such as property sales or leases, are legally documented and registered. These charges vary from one jurisdiction to another and are typically based on a percentage of the property's value or the transaction amount.
Check out the latest rates for stamp duty and property registration fee applicable on purchase of a plot, house or an apartment in any Uttarakhand city like Dehradun, Rishikesh, Haridwar, Haldwani, Rudrapur etc.
Stamp Duty on Property Sale-Purchase: Stamp duty is a tax levied on legal documents that provide evidence of a transaction. In the context of real estate, it is paid on documents like sale deeds, lease agreements, and conveyance deeds. When you buy or sell a property, you need to pay stamp duty on the property's sale deed. The rate of stamp duty can vary depending on factors such as the property's location, type, and its value. Stamp duty is usually paid by the buyer of the property and is a one-time payment.
Property Registration Charges : Registration charges, also known as registration fees or property registration charges, are the fees associated with the legal registration of a property transaction. When a property transaction is completed, the relevant documents, such as sale deeds, lease agreements, or mortgage documents, need to be registered with the local government authorities. The registration charges are paid for the process of officially recording these documents. Like stamp duty, registration charges are typically paid by the buyer of the property and are based on the property's value or the transaction amount.
How to Pay Property Registration and Stamp Duty Charges in Uttarakhand
The modes of payment for property registration and stamp duty charges in Uttarakhand typically include the following:
Physically Payment: It is possible to physically pay the stamp duty and registration fees via the offline approach. When a real estate transaction is complete, the buyer can go directly to the local sub-registrar's office and pay the necessary registration and stamp duty fees.
Online Payment: Some governments, like Uttarakhand, are offering online payment options for stamp duty fees and property registration fees. You might be able to pay these fees via the sub-registrar office's website or the state revenue department's official one. Internet banking, debit cards, credit cards, and online wallets are just a few examples of online payment options.
Franking: Franking involves affixing adhesive stamps to the documents to indicate that the necessary duty has been paid. Franking can often be done at authorized banks or franking centers. However, the availability and usage of franking can vary based on local practices.
E-stamping: E-stamping is an electronic method of paying stamp duty. It involves generating a unique electronic stamp certificate for the required amount, which is then affixed to the document. E-stamping aims to reduce the use of physical stamp papers and streamline the payment process.
Rate of Stamp Duty in Uttarakhand
There is a differential pricing on stamp duty being paid by male and female buyers in Uttarakhand. The latest stamp duty rates are as below:
| Stamp Duty and Registration Charges in Uttarakhand | ||
| Applicants | Stamp Duty Charges in Uttarakhand | |
| Male applicant | 5% | |
| Female applicant | 3.75% | |
| Joint (Male + Female) application | 5% | |
| Joint (Male + Male) application | 5% | |
| Joint (Female + Female) application | 3.75% | |
Rate of Property Registration in Uttarakhand
The property registration fee in Uttarakhand is charged at 2% of the transaction value or the circle rate, whichever is higher. Also, the maximum amount charged for property registration is capped at 25,000.
How to Calculate Property Registration and Stamp Duty Charges in Uttarakhand
(1) The stamp duty for female buyers in Uttarakhand is 3.75% of the circle rate of the property. Registration Fee Rate is 2% or maximum INR 25000
For Example - A Female purchased a property worth INR 25 lakh in Dehradun. She will have to pay 3.75% of the 25 lakh as stamp duty and another 2% of the property’s value as the registration fee.
- Calculate Stamp Duty : Stamp Duty = Property Value × Stamp Duty Rate
Stamp Duty = INR 25,00,000 × 3.75% = INR 93,750
- Calculate Registration Fee : Registration Fee = Property Value × Registration Fee Rate
Registration Fee = INR 25,00,000 × 2% = INR 50,000 (INR 25000 max)
So, for the property worth Rs 25 lakhs for female buyers in Dehradun:
Stamp Duty: INR 93,750
Registration Fee: INR 25,000
(2) The stamp duty for Male buyers in Uttarakhand is 5% of the circle rate of the property. Registration Fee Rate is 2% or maximum INR 25000
For Example - A male purchased a property worth INR 25 lakhs in Dehradun. He will have to pay 5% of the 25 lakhs as stamp duty and another 2% of the property’s value as the registration fee.
- Calculate Stamp Duty: Stamp Duty = Property Value × Stamp Duty Rate
Stamp Duty = INR 25,00,000 × 5% = INR 1,25,000
- Calculate Registration Fee: Registration Fee = Property Value × Registration Fee Rate
Registration Fee = INR 25,00,000 × 2% = INR 50,000 (INR 25000 max)
So, for the property worth INR 25 lakhs for male buyers in Dehradun:
Stamp Duty: INR 1,25,000
Registration Fee: INR 25,000
Tax Benefits on Stamp Duty in Uttarakhand
When you buy or build a house, you are required to pay stamp duty charges, which are mandatory. These expenses are eligible for deductions under Section 80C of the tax code. This section allows a maximum deduction or tax benefit of up to Rs. 1,50,000 for homebuyers to offset the additional costs associated with stamp duties and registration expenses. However, it's important to meet the specified conditions outlined in this section to qualify for this tax benefit.
In certain jurisdictions, the stamp duty fee paid for property purchases can indeed be claimed for tax benefits, particularly for users who opt for the old tax regime. Taxpayers are entitled to deductions under Section 80C of the Income Tax Laws under the previous tax regime. Stamp duty paid on real estate purchases can be considered an expense that is deductible. By factoring in the stamp duty fees, property buyers can potentially reduce their taxable income and, subsequently, their overall tax liability.
It's important to note that tax laws can change and the applicability of these deductions may vary by region, so it's advisable for individuals to consult with a tax professional or refer to the latest tax guidelines provided by their local tax authorities to ensure they make the most of available tax benefits when purchasing a property.
