Buying a new home is no less than a dream for most of us. We put in a lot of effort and finances to own a property and transform those four walls into our own abode. While choosing the right property is a tedious task in itself, preparing the finances and making monetary arrangements is wearying and tiring and one requires proper guidance on the financial aspect of property buying. When buying a commercial or a residential property in Pune, understanding stamp duty and registration charges is important. These charges are mandatory and contribute significantly to the overall cost of property value.
Below is a comprehensive guide for Stamp Duty and Registration Charges in Pune.
What is Stamp Duty?
When buying a property, stamp duty is the amount paid as tax to the state government on the purchase of a property in a particular area. It is a legal requirement by the buyer under the Indian Stamp Act, 1899, and it validates the property transaction.
What are Registration Charges?
Under law, registration charge is the fees paid for registering the property in the new owner’s name. This process is conducted at the Sub-Registrar’s office under the Indian Registration Act, 1908.
What are the current Registration Charges in Pune
The registration charge is typically 1% of the property’s market value or the agreement value, whichever is higher, subject to a maximum cap (commonly Rs. 30,000 in Maharashtra).
Stamp duty registration made easier: Calculate Stamp Duty in Pune
It is now easy and convenient to have an accurate estimate of stamp duty rates in Pune, as buyers can now have an estimate of the online stamp duty and registration with online calculators. For your better understanding, below is an example of Pune’s registration and stamp duty charges calculation-
If the value of the chosen property in Pune is INR 80 lakhs; the stamp duty calculation is made using the below percentages-
- The Stamp Duty @ 5% will be INR 400000
- The Local Body Tax (LBT) @ 1% will be INR 80000
- The Metro Cess (announced in April 2022) @ 1% will be INR 80000
- The Registration Charges @ 1% will be INR 80000
In total, the total stamp duty and registration charges in Pune will be INR 640000.
Area-Wise Stamp Duty In Pune
Pune is spread far and wide and consists of many zones for example- the gram panchayat, rural areas, SEZ and cantonment areas and likewise the area wise stamp duty differs accordingly.
Below listed are the stamp duty for each area:
- Within the regulatory controls of a Gram Panchayat, the stamp duty is 4%
- Within the administration of any panchayat or rural area falling under the MMRDA (Mumbai Metropolitan Region Development Authority), the stamp duty is 5%
- Within the authority of regions of the Cantonment Area or Municipal Corporation, the stamp duty is 5%
How to make payment for stamp duty online In Pune?
An easy and faster way of making payment for stamp duty and property registration charges in Pune is by choosing to do it online. Below listed is the main website that will make it easier for the homebuyer to make payment for stamp duty in Pune online:
- Official website of Maharashtra at https://gras.mahakosh.gov.in/igr/frmIndex.php
- Click on e-Registration, and you will be redirected to https://appl1igr.maharashtra.gov.in/NGDRS_MH/
- Select Citizen Login, and continue accordingly.
This website will project your stamp duty and property registration fees according to the information provided there. As and when you complete the entire process and make the payment, an online e-signed deed will be available for download. This document is very important and must be kept for future reference purposes.
Factors Affecting Stamp Duty Charges In Pune
Not all types of properties have the same stamp duty in Pune. The state government in Maharashtra levies stamp duty and registration charges according to the various property types- newly constructed property, resale flats, commercial spaces etc.
However, the exact stamp and registration charges in Pune can depend on many factors:
- Category of property and intentional use: It is to be noted that stamp duty charges and registration fees are higher on residential properties as compared to commercial properties.
- The location of the property: Stamp duty and registration charges will largely depend on the region it is located. For eg. rural areas, urban space, or semi-urban regions.
- The market worth of the property: When ascertaining the stamp duty, charge the market worth of the property. must also be evaluated.
- The demographic factor: The age and gender of the buyer also influences the stamp duty and registration charges.
- Exemptions and Concessions: In some cases, there might be exemptions or concessions- Women buyers in Maharashtra get a 1% concession on stamp duty, whereas the agricultural properties may have different rates.
Understanding the nitty-gritty of stamp duty and registration charges is a requisite for a legal and stress-free property transaction when buying a property in Pune. It’s also important to stay upgraded with the up to date rates and regulations to avoid any legal complications. For the updated current rates and procedures, you can refer to the official websites of the Government of Maharashtra and the Department of Registration and Stamps.
