While buying a property, stamp duty and registration charges conclude the deal. These mandatory charges vary from one State to the other. Factors like property value, type of property and its location, number of floors, and the purpose for which it’s being bought – residential or commercial – determine how much stamp duty the buyer will have to pay.
Recently, the Government of Tamil Nadu revised these charges for several of its services related to real estate. Due to this, the development and redevelopment of property is expected to become pricier.
This is the third hike in fees by the registration department in the last three years, including the increase in the guideline value and other services such as construction agreements and power of attorney. On the other hand, in a first of sorts, the Tamil Nadu government recently amended the Registration Act, 1908 (Central Act XVI of 1908), applicable only to the State, which empowers the State government’s Department of Registration to cancel the registration of properties if they are found to have been forged.
If those involved in the property deal have been impersonated, the registration can be cancelled. Also, Tamil Nadu is the second State in India (after Maharashtra) to introduce online registration of certain type of documents related to property transactions. Digitally signed certified copies of documents registered way back from 1865 onwards and Encumbrance Certificates from the year 1975 onwards can also be obtained online. Here is everything you need to know on the subject, at a glance.
Highs and lows
The sale deed registration fees varies drastically across India. As on October 31 last year (in percentage):
9.5: Madhya Pradesh had the highest stamp duty rate in India
4.9: Gujarat had the lowest stamp duty rate (without considering rural or female concession)
8.5: Assam had the highest registration fees rate
0.15: Meghalaya had the lowest registration fees rate
What’s in a picture?
In a bid to prevent evasion of stamp duty on the registration of properties, some States have made it mandatory for buyers to furnish a photograph of the property in the sale deed.
The rule is followed in Gujarat, Madhya Pradesh, Bihar, Andhra Pradesh, Telangana and Uttarakhand
In Rajasthan, photographs of the property are affixed only when the value of the property exceeds ₹25 lakh
In Bihar, the photograph of the property is taken in the presence of officials from the registration department before it is affixed in the sale deed
Online verification of property encumbrance details
This facility is available only in Andhra Pradesh, Bihar, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Maharashtra, Odisha, Telangana, Tamil Nadu and West Bengal and in the two Union Territories Delhi and Puducherry. The period of online verification of transactions varies from State to State. In Gujarat and West Bengal, the facility varies from region to region.
Being GPS ready
In Uttarakhand and Himachal Pradesh, GPS details should be mentioned in all the documents presented for registration
In Rajasthan, GPS details are required only for agricultural properties
Telangana, Karnataka, Maharashtra and West Bengal have a separate app for the stamps and registration department
Exemptions for women and armed forces
Rajasthan, Haryana, Himachal Pradesh, Punjab, Assam, Chhattisgarh, Uttarakhand, Uttar Pradesh, Bihar and the Union Territories of Delhi and Puducherry grant concession to women for purchase of properties in their name
No registration fees is levied in Gujarat for purchase of property in the name of women
Rajasthan, Uttarakhand and Uttar Pradesh grant concession for purchase of property in the name of disabled persons
Uttarakhand is the only State in India which grants concession in stamp duty for purchase of property in the name of those in the armed forces
Uttar Pradesh grants concession in stamp duty for ex-servicemen and the legal dependents of martyr soldiers, martyr paramilitary and martyr Central armed police forces
Limits on stamp paper
Telangana, Gujarat and Maharashtra have completely stopped the physical usage of non-judicial stamp papers in the registration department. That said, some States have introduced maximum upper ceiling limits for usage of stamp papers. For instance, in Haryana the maximum limit is ₹100, West Bengal ₹5,000, Rajasthan ₹50,000, and Kerala ₹1 lakh.
Route map compulsory
In Andhra Pradesh, Karnataka (city survey sketch for vacant lands), Jharkhand, Odisha, West Bengal (site map issued by any registered surveyor), Uttarakhand, Uttar Pradesh, Himachal Pradesh (only for built-up properties), Punjab and Chandigarh (only for agricultural properties), the route map/sketch map should be compulsorily enclosed at the time of registration.
₹10,000-crore club
Till a decade ago, Maharashtra and Tamil Nadu alone earned annual revenues exceeding ₹10,000 crore for the State exchequer. Maharashtra earned the highest revenue of ₹43,289 crore for the financial year 2022-23 followed by Uttar Pradesh, Karnataka, Tamil Nadu and Telangana. During the financial year 2022-23, apart from the above-said States, Gujarat and Haryana have also earned more than ₹10,000 crore from the stamps and registration department.
The shift system
Maharashtra is the only State in India where sub-registrar offices function on a shift basis. In selective offices in Mumbai, Pune and Thane, the morning shift is from 7.30 a.m. to 3.15 p.m., afternoon shift from 1.15 p.m. to 8.45 p.m., besides the regular shift from 9.45 a.m. to 6.15 p.m.
Registration anywhere
Among all the States, it is only in Andhra Pradesh (from 2015 onwards) and Kerala (2021 onwards) that documents for registration can be presented in any sub-registrar office across the respective States.
Going digital
Digitally signed certified copies of documents are issued only in Tamil Nadu, Odisha, Gujarat, Karnataka, Madhya Pradesh and Maharashtra.
The writer is Chennai-based advocate and author of ‘Property Registration, Land Records and Building Approval Procedures Followed in Various States in India’.
