Lifestyle

Stamp duty and registration charges in Telangana

[ecis2016.org] In this article, we will see what are the stamp duty and registration charges in Telangana on sale of immovable property, partition of property, gift and settlement and power of attorney, as well as refund for stamp paper

Stamp duty is one of the most important sources of revenue for the government. Of late, following the COVID-19 crisis, developers in Telangana are asking for a stamp duty cut, to boost the demand and sale of property in Telangana. Besides, the Telangana Real Estate Developers’ Association (TREDA) has already submitted a memorandum to the state government asking for a 50% cut in property registration charges. Stamp duty in Telangana is to be paid, at the time of execution of a document, by affixing non-judicial stamps to the document or through e-stamps remitted into any designated/authorised bank in favour of the Head of Account of the Commissioner and Inspector General of Registration and Stamps, Telangana, Hyderabad.

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In this article, we will see what are the stamp duty and registration charges in Telangana on sale of immovable property, partition of property, gift and settlement and power of attorney, as well as refund for stamp paper.

Stamp duty

Stamp duty charges in Telangana

The Registration and Stamps Department in Telangana collects 6% of the property value as charges for registration, which includes stamp duty, transfer duty and registration fee and a nominal user charge. In all the cases listed below, stamp duty is payable on the market value or the consideration amount, whichever is higher. The stamp duty and registration charges are the same for both, men and women, in Telangana.

Stamp duty, transfer duty and registration charges in Telangana 

For sale of immovable property

Document  Stamp duty  Transfer duty Registration charges
Sale of immovable property in corporations, selection grade and special grade municipalities 4% 1.5% 0.5%
Sale of immovable property in other areas 4% 1.5% 0.5%
Apartments / flats, including semi-furnished, in all areas 4% 1.5% 0.5%
Sale agreement with GPA 5% (4% adjustable and 1% not adjustable) 0% Rs 2,000
Sale agreement with possession 4% 0% 0.5% (subject to a minimum of Rs 1,000 and a maximum of Rs 20,000)
Sale agreement without possession 0.5% (not adjustable) 0% 0.5% (subject to a minimum of Rs 1,000 and a maximum of Rs 20,000)

Read also : Can budget 2017 compensate for demonetisation’s impact on realty?

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Source: Telangana Registration Department

[ecis2016.org] Telangana land and property registration: All you need to know

Stamp duty on partition of property, gift and settlement in Telangana

In all the cases listed below, stamp duty is payable on the market value or the consideration amount, whichever is higher.

Document  Stamp duty Transfer charges Registration fee
Partition among family members 0.5% on VSS, subject to a maximum of Rs 20,000 0% Rs 1,000
Partition among co-owners that are not family members 1% on VSS 0% Rs 1,000
Settlement among family members 1% 0% 0.5% (subject to a minimum of Rs 1,000 and maximum of Rs 10,000)
Settlement with non-family members 2% 0% 0.5% (subject to a minimum of Rs 1,000 and maximum of Rs 10,000)
Settlement for charitable purposes 1% 0% 0.5% (subject to a minimum of Rs 1,000 and maximum of Rs 10,000)
Gift in favour of relatives 1% 0.5% 0.5% (subject to a minimum of Rs 1,000 and maximum of Rs 10,000)
Gift in other cases 4% 1.5% 0.5% (subject to a minimum of Rs 1,000 and maximum of Rs 10,000)

Read also : Can budget 2017 compensate for demonetisation’s impact on realty?

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Source: Telangana Registration Department

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Stamp duty on power of attorney and will in Telangana

In all the cases listed below, stamp duty is payable on the market value or the consideration amount, whichever is higher.

Document  Stamp duty Transfer charges Registration fee
General power of attorney authorising a family member to sell, transfer and develop immovable property Rs 1,000 0 0.5% (subject to a minimum of Rs 1,000 and maximum of Rs 20,000)
General power of attorney authorising an agent or others to sell, transfer and develop immovable property 1% 0 0.5% (subject to a minimum of Rs 1,000 and maximum of Rs 20,000)
General power of attorney for any other purpose other than authorising an agent or others to sell, transfer and develop immovable property Rs 50 0 Rs 1,000
Special power of attorney Rs 20 0 Rs 1,000 for attestation
Will 0 0 Rs 1,000

Read also : Can budget 2017 compensate for demonetisation’s impact on realty?

Read also : Andhra Pradesh sand booking platform: All you need to know

Source: Telangana Registration Department

What happens if you do not pay stamp duty?

When you do not pay stamp duty, the purchase or transaction cannot be accepted or received as evidence. In short, it is not valid and such transactions will be impounded by law and a penalty will also be imposed.

Read our article on Telangana RERA.

How to get a refund on stamp duty in Telangana?

You can ask for a refund for non-judicial stamp papers that were not used or spoilt. This is permissible under the Indian Stamp Act, 1899. However, non-judicial stamp papers are available up to Rs 100 only and a government order has allowed refunds through the challan system.

Check out properties for sale in Hyderabad.

FAQ

What is the market value of a property?

As per Section 47A of the Indian Stamp Act, 1899, the market value of a property is the value it would fetch, if sold in the open market.

Can I get refund of penalty on an impounded document?

Yes, a Controlling Revenue Authority (IGR & S) can order for refund on your appeal, if the penalty levied was charged on the higher side.

In case of a partition deed, who pays stamp duty?

In this case, the rules say that all the parties are liable to pay stamp duty, in proportion to their share in the property.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Source: https://ecis2016.org
Category: Lifestyle

Debora Berti

Università degli Studi di Firenze, IT

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