Stamp duty and registration charges in Gurgaon

[ecis2016.org] Here’s everything you need to know about stamp duty and registration charges on property purchases in Gurgaon

Gurgaon (now known as Gurugram) is among the most expensive property markets in India currently. In spite of some correction in the past few years, the average property rates in the Millennium City currently stand at over Rs 5,000 per sq ft. Additionally, there are various other expenses that property buyers have to bear, to legally transfer the asset in their name. The Registration Act, 1908, makes it mandatory for the buyer to register a property, for which property buyers in this region have to pay the Gurgaon stamp duty and registration charges. Since these two levies considerably increase the overall cost of purchase, buyers need to know the expenses they would have to bear for this legal formality.

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Stamp duty in Gurgaon as percentage of the property cost

In Gurgaon, buyers have to pay stamp duty, depending on their gender and property location. Stamp duty charges are higher for men and higher for areas falling within the municipal limits. For properties for sale in Gurgaon in areas that fall within the municipal limits, men and women have to pay 7% and 5% stamp duty, respectively. In areas that fall outside the municipal limits, men and women have to pay 5% and 3% stamp duty, respectively.

Stamp duty in Gurgaon

Even though there has been intense pressure from the industry, to reduce the stamp duty and registration charges in Haryana to make property purchases more lucrative, at a time when the Coronavirus pandemic has ushered in an era of demand slowdown, the state government has decided to maintain a status quo on these levies. Much to the dismay of the industry, in fact, the state government also recently hiked circle rates in key housing markets, including Gurgaon.

Registration charges in Gurgaon

Under the provisions of the Registration Act, buyers have to get the transaction registered within four months of the purchase. Unlike most states where the buyer has to pay 1% of the property value as the registration charge, Haryana charges a flat fee, based on the property’s worth.

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Property registration charges in Gurgaon

How to calculate property value in Gurgaon

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Stamp duty payable by a buyer can be calculated, by factoring in the unit area and the prevalent circle rate in the area. Buyers can arrive at the duty, by first calculating the property value. This can be done by following the formula mentioned below:

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Stamp duty calculation example

Depending on the property value you arrive at, you have to calculate the stamp duty, by taking the percentage applicable on you.

If the property value is Rs 50 lakhs, for example and it falls within the municipal limits and is being registered in the name of a male, the applicable stamp duty would be 7% of Rs 50 lakhs. Thus, the buyer will have to pay Rs 3.50 lakhs as stamp duty. Since the transaction value is over Rs 25 lakhs, the buyer will have to pay an additional Rs 15,000 as the registration charges.

If the same property fell outside the municipal limit and was being registered in a woman’s name, the applicable stamp duty would be 3%. Then, the buyer would have to pay Rs 1.50 lakhs as stamp duty. Since the transaction value is over Rs 25 lakhs, the registration charge will be the same.

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Online payment of stamp duty in Gurgaon

Buyers have to first pay the stamp duty online, before they can book an online appointment for property registration at the sub-registrar’s office. You can make this payment by following the steps mentioned below.

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Step 1: Log on to the official portal, egrashry.nic.in.

Step 2: Create an account, after which you can login, using your username and password.

Step 3: You could then start the process by keying in all the property’s details and then make the payment through internet banking.

Step 4: After the successful payment, an e-receipt would be generated. At the time of the registration, the buyer has to carry a copy of this receipt along with other documents.

FAQs

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