Stamp duty on Property in Delhi is a crucial component of buying a home since it proves that ownership of the property has changed hands. It also has absolute legal worth, and any sale is only regarded as effective after the payment of the registration fee and stamp duty.
It would be important to be aware of the stamp duty and property registration fees if you are looking to buy a house in Delhi. To establish your property ownership in a court of law, stamp duty must be paid. This is a quick guide to assist you with Delhi property registration and stamp duty payment. Thus, with that in mind, let’s learn everything there is to know about stamp duty on property in Delhi, Registration, and Charges.
Stamp duty property in Delhi charges
The amount that a person must pay to register their property in Delhi is known as the stamp duty rate in Delhi. Since they are a key source of revenue for the state government, Delhi’s stamp duty and registry fees are constantly being adjusted. Hence, let’s analyze their rates!
|Gender||Rate(of the property value)|
All buyers in Delhi, regardless of gender, must pay 1% of the total deal value as the registration price and the stamp duty at the moment the sale deed is registered. So, a man purchasing and registering a property in the national capital will essentially have to pay 7% of the property cost during the registration while a woman will pay 5% of the value. When a home is registered jointly in the names of a man and a woman in Delhi, they each must pay 6% of the property’s cost at the time of registration.
Factors determining stamp duty charges in Delhi
Age and gender of owner:
In Delhi, female and senior residents often pay slightly less in stamp duty and house registration fees than do young male and female property owners.
Location of property:
The fees will be comparatively greater for homes located in metropolitan areas or in the middle of cities than for those in semi-urban and rural locations.
Use any type of property:
Age of property:
Due to their lower cost, older properties tend to have lesser stamp duty than newer ones since the tax is based on the value of the property.
How to calculate stamp duty in Delhi
The ready reckoner rate, market value, or circle rate of the property is used to determine stamp duty. Here’s how to figure it out:
- Your local circle fee is Rs. 5,000 per square foot.
- Property size: 1,000 square feet
- Cost of property at circle rate: Rs. 50 lakh
- Stamp duty is charged at 6%.
- Stamp duty is due: 6% of Rs. 50 lakh is equal to Rs. 3 lahks.
- 1 percent in registration fees
- Registration fees: 1 percent of Rs. 50 lakh is equal to Rs. 50,000.
- The total amount due for stamp duty and registration fees is Rs. 3.5 lakh.
Points to consider before paying stamp duty in Delhi
The stamp duty and registration fees are required to be paid compulsorily since they are regarded as an essential component of the property registration process.
For female applicants, the state government has maintained slightly reduced stamp duty rates. This was carried out to encourage women to acquire property.
Although the stamp duty and registration fees are one-time payments, the state exchequer may impose a severe fine if the stamp duty is not paid.
It must be highlighted that the stamp duty and registration charges are exempted under section 80 C of the Income Tax Act, but this limit is capped at Rs 1.5 lakh per annum.
How to pay stamp duty in Delhi
In Delhi, stamp duty must be paid through e-stamping as a result of the government’s introduction of the practice. Thus, there are no offline methods for paying this duty. The Stock Holding Corporation of India Ltd (SHCIL) has been designated by the center as the organization in charge of all e-stamps in India, therefore purchasers must go to its shcilestamp.com and submit a payment there. SHCIL has authorized collecting facilities known as ACCs that serve as a middleman between SHCIL and the buyer.
You can either pay the stamp duty in cash if you are acting through an ACC. Also, you might transfer money from one account to another via a check, demand draft, pay order, RTGS, or NEFT.
By going on to srams.delhi.gov.in to start the registration procedure, the buyer can schedule an online appointment with the sub-office registrars after paying the necessary fees.
List of documents required for stamp duty payment in Delhi
- All original records are accompanied by a single collection of copies.
- Address the buyer’s, seller’s, and witnesses’ evidence.
- On two copies of the papers, two passport-sized portraits of the buyers and sellers.
- E-Stamp paper with the right stamp duty amount.
- E-Registration fee receipt, along with an undertaking or affidavit.
- Copy of PAN card or Form 60 that has been self-attested.
- In the case of a plot or property, a no-objection certificate (NOC) is required.
- Sale Deed
- Proof of the buyer, seller, and witness identities.
Know the latest updates on stamp duty and registration charges in Delhi
The Delhi Municipal Corporation voted to raise the property transfer tax last year. The transfer duty on such properties would rise by 1% for those worth more than Rs 25 lakh. As a result, men will pay 4% of the new transfer charge, while women would pay only 3%.
To help the Delhi Municipal Corporation’s financial predicament, the transfer duty was raised. During COVID-19, the municipal corporation experienced serious losses. Only those buyers whose property has a registered value of more than Rs 25 Lakhs will be impacted by the decision. The Delhi administration also intended to raise stamp taxes for several types of transactions.
The government also stopped offering a 20% discount on circular rates for real estate transfers. The revenue division was informed of the idea, and it will probably be approved. The rise in stamp duty may bring in an extra Rs 700–800 crore for the state.
How to save stamp duty charges
Even though paying stamp duty is required, there are ways to do so cheaply. Here are some suggestions to help you pay less in stamp duty:
Buy Property in Women’s Name
If the property is recorded in a woman’s name, certain jurisdictions will reduce the stamp tax. For instance, women in Delhi must pay 4% stamp duty whereas men must pay 6%.
Purchase Affordably Priced Housing
The Pradhan Mantri Awas Yojana is one of the programs the government has launched to encourage affordable housing (PMAY). Stamp duty rates are reduced for properties registered under these programs.
If you buy the home jointly with another individual, the cost is lower overall because the stamp duty liability is split between the two of you.
Purchase Real Estate in a Rural Area
In several states, rural properties are subject to lower stamp duty rates than urban properties.
Under Section 80C of the Income Tax Act of 1961, you may deduct the stamp duty and registration costs if you borrow money to buy the property.
Stamp Duty on Property in Delhi, and registration fees in Delhi guarantee that the property is properly registered in public records and may avert legal difficulties down the road.
Do I need to pay stamp duty for registration of the will?
No, you do not need to pay stamp duty for the registration of wills. You only need to pay the registration fee.
Are Tax Benefits Available on Stamp Duty and Registration Charges?
Yes, you can avail of a tax exemption of up to ₹1,50,000 under Section 80C of the Income Tax Act of 1962 for paying stamp duty and registration fee
How can I check ownership of land in Delhi?
Visit the DORIS (Delhi Online Registration Information System) official website to check the ownership of land in Delhi.