What are property transfer charges state-wise in India?
Property transfer Charges are mandatory for every citizen who wants to transfer his/her property. Charges of property transfer vary from state to state. Charges under the Transfer of property act 1882 define Real estate as broadly classified into 2 categories Movable property and Immovable property. As per the Indian government who wants to transfer his immovable property he is chargeable for property transfer. The location of the property affects the price of the property, and when you select the locations which are best for living and work the absolutely it will be directly affected by the stamp duty and registration charges.
Factors that affect your stamp duty Charges?
Various factors affect stamp duty charges and they differ from state to state, person to person, gender to gender, etc. In a few states where the stamp duty rate is low for females such as Assam, Bihar, Haryana, Punjab, and many more. The commercial property stamp rate is high compared to residential property.
Age of the owner
The charges of the stamp duty depend upon the age of the person, and on whose name the property is being transferred. In case the buyer belongs to a senior citizen so there is an advantage for the buyer for paying less stamp duty compared to others. Charges may differ from state to state.
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Gender of the owner
The charges of the stamp duty depend upon the gender of the person. Just like a senior citizen If the property is registered in the name of a woman and she wishes to transfer her property to anyone so she will get some amount of concession. This facility does not apply to all Indian citizens. States like Maharashtra, Bihar, Jharkhand, and Kerala. The charges are the same for men and women.
Age of the Property
The charges of the stamp duty depend upon the age of the property. If the buyer is purchasing old property so there are chances of less stamp duty and vice versa.
Location of the property
The location of the property plays a vital role in the charge of stamp duty. If you are a citizen of an urban area like Mumbai, Kolkata, or Bangalore, the stamp duty is higher as compared to rural areas. But when you looking for the best return on your investments, then you must ignore the stamp duty charges and go for the Smart Cities to invest your precious money.
Type of property
Stamp duty depends upon the which type of property you are planning to buy like a flat, land, villa, and independent house. Charges may differ for each property.
Usage of property
It depends upon the usage of the property. Either is purchased for residential purposes or commercial purposes. Charges are always higher for commercial properties as compared to residential properties.
Project amenities
If you purchase a property and they offer you exclusive amenities like Club house, transport facility, swimming pool, gym, community hall, garden, etc .stamp duty charges are high for this type of property.
How stamp duty calculates
The charges of stamp duty are calculated based on the ready reckoner rate of the property and the rate of property as per the agreement. The other word for ready reckoner rate is circle rate. For example- If the value of the property mentioned in the agreement is Rs 90 lakh and the ready reckoner rate is Rs 1 Cr . so the stamp duty of the property will be calculated on the higher amount (Rs 1 Cr ).
Document required for the payment of stamp duty
According to the type of property, you are required to submit various documents at the time of registration. Here is a list of a document mentioned below, which will help you to submit the document at the time of registration of the new property.
- Original sale deed of the flat
- No-objection certificate (NOC) of the society
- Government-authorized ID Card
- PAN Card
- Khata certificate
- If the property is under construction, sanctioned plan, possession letter, and agreement copy between the builder and buyer.
- If your property loan is due or not cleared, do submit your latest bank statement.
The procedure of property transfer
The procedure of property transfer typically involves a series of steps and legal processes to ensure the lawful and documented transfer of ownership from one party to another. While the exact procedure can vary depending on the jurisdiction and specific circumstances, I can provide you with a general overview of the typical steps involved in a property transfer:
Sale deed
Whenever a person is transferring his/her property to one or more persons in the present or future is known as transferring a property. Sale deeds occur only when the property owner is not well, retired, bankrupt, and more. It includes the details of the buyer and seller, rights of the buyer, address of the property, Total area of the property, etc.
Gift deed
Whenever a person voluntarily gifts his/her property to any other person then it’s called a gift deed. In this type of property transfer, there is less chance of any dispute.
Relinquishment deed.
It happens only when the owner of the property expires, and the co-owner wants to transfer his owner property to another co-owner. This type of deed must be registered in court for legal purposes
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Will deed
If the owner of the property makes a will deed that, after the death of the owner to whom the property will be distributed. and mention all details in a deed. To avoid the dispute in the future between the heirs.
Settlement deed
It is a legal contract between family members only, specifying that if in the future there is any disagreement happen between them. then they all should follow the same terms and conditions mentioned in the agreement. It includes only close family member who is a part of the property distribution
Now you can clear your stamp duty Registration Fee In an easy way
Nowadays purchasing a new property is easier than registering of new property. So here we cover all charges of stamp duty and registration in India. These charges differ from state to state. Many factors affect these charges. We can assume the maximum registration charge is 4% and maximum stamp duty charges are between 5% To 10%. Now whenever you buy a Flat in the Smart City or Satellite Cities you can smoothly complete this registration process.
