Stamp Duty and Property Registration Charges in Telangana
Jun 26, 2024
Telangana Property Registration & Stamp Duty
When a property transaction takes place, the state government imposes certain charges known as property registration charges. They cover the costs associated with registering the transfer of ownership. Stamp duty is a component of property registration charges and is a tax imposed on the sale of property. It is generally calculated based on the transaction value or market value of the property, whichever is higher.
Both of these charges are considerations when looking to purchase real estate within the state of Telangana. This article will provide a general overview of the stamp duty and property registration charges in Telangana, the factors that can affect them, and the documents required for registration of stamp duty in Telangana.
Table of contents
- What are the stamp duty charges in Telangana?
- What are some of the factors that determine the stamp duty charges you will pay in Telangana?
- What are the documents required for registration for stamp duty in Telangana?
- Stamp duty and registration charges in Telangana
- How are registration and stamp duty charges calculated in Telangana?
- How to pay stamp duty and registration charges in Telangana?
- Conclusion
- FAQs
What are the stamp duty charges in Telangana?
Being one of the more densely populated cities in India, with Hyderabad as its capital, Telangana real estate is in high demand. The stamp duty in Telangana for areas excluding Gram Panchayath is 5.50% and the registration fees are 0.50%, as per the Registration and Stamps Department, Government of Telangana. Additionally, a transfer duty of 1.50% is applicable. For a sale deed in Gram Panchayath, the stamp duty is 5.5% and the registration fees are 2.00%. Transfer duty is not levied.
What are some of the factors that determine the stamp duty charges you will pay in Telangana?
Factors such as property location, property type, and age and gender of the owner can affect the charges for stamp duty in Telangana.
- Location of the property: Urban areas may have a higher stamp duty compared to rural areas.
- Property type and age: Residential properties may have lower stamp duty charges than commercial properties. Additionally, lower stamp duty may be levied on older properties as compared to newer ones.
- Age of the owner: Senior citizens may be able to get a rebate on stamp duty, thus having to pay lower charges than younger property owners.
- Gender of the owner: In some states, women have to pay lower stamp duty charges than men.
- Amenities: Properties with more amenities and facilities may lead to a higher stamp duty.
What are the documents required for registration for stamp duty in Telangana?
Here are the general documents required for registration of stamp duty in Telangana:
- Original property documents such as the sales deed.
- Encumbrance Certificate (EC)
- Identity proof (with address) of the seller, buyer, and 2 witnesses. An Aadhar Card is generally preferred.
- Bank challan showing the payment of land registration fees in the state
- Demand draft
- Section 32A photo form of executants and witnesses
- Pattadar passbook for agricultural land
- Power of Attorney (if required)
| Document |
Stamp Duty |
Transfer Duty |
Registration Fees |
Chargeable Value |
Sale Deed (in Gram Panchayath) |
5.5% |
0.00% |
2.00% |
Market Value OR Consideration (Whichever is higher) |
Sale Deed (in other areas) |
5.50% |
1.50% |
0.50% |
Market Value OR Consideration (Whichever is higher) |
Sale Agreement With Possession |
5.50% (5.50% Adjustable) |
0.00% |
0.5% (Minimum INR 1,000 and Maximum INR 50,000) |
Market Value OR Consideration (Whichever is higher) |
Sale Agreement Without Possession |
0.50% (Not adjustable) |
0.00% |
0.50% (Minimum INR 1,000 and Maximum INR 50,000) |
Market Value OR Consideration (Whichever is higher) |
Agreement of Sale cum General Power of Attorney |
6.50% (5.50% Adjustable) |
0.00% |
0.5% subject to a minimum of INR 5,000 and maximum of INR 1,00,000 |
Market Value OR Consideration (Whichever is higher) |
Conveyance |
5.00% |
0.00% |
0.50% |
Market Value OR Consideration (Whichever is higher) |
Certificate of Sale |
5.00% |
0.00% |
0.50% |
Market Value OR Consideration (Whichever is higher) |
Stamp duty charges also vary for deeds such as a gift, settlement, will, lease, and so on. It is advisable to visit the official website of Registration and Stamps Department, Government of Telangana for up-to-date information.
How are registration and stamp duty charges calculated in Telangana?
Stamp duty in Telangana and registration are calculated as a certain percentage of the property’s market value.
Let us consider a residential property with a market value of INR 10,00,000 in an urban area. The stamp duty is 5.5% and registration fees in this case are 0.50%. A transfer duty of 1.50% is also applicable. Thus,
Stamp duty: INR 10,00,000 * 5.5% = INR 55,000
Registration fees: INR 10,00,000 * 0.50% = INR 5,000
Transfer duty: INR 10,00,000 * 1.50% = INR 15,000
Therefore, total charges: INR 55,000 + INR 5,000 + INR 15,000 = INR 75,000.
How to pay stamp duty and registration charges in Telangana?
Online Process:
- Visit the official website of Registration and Stamps Department, Government of Telangana.
- Click on "e-STAMPS". If you haven’t already, register and create a login ID on the portal.
- Submit the necessary details, documents, and pay the fees. A duplicate copy of the challan will be generated upon successful payment.
- Book a time slot and appointment with the sub-registrar.
- Visit the Sub-Registrar's Office (SRO) for document verification and present e-KYC.
- Complete the process, upon which the officer will provide an endorsement of the registered document.
These are the general steps you may need to go through. For the most up-to-date information, visit the official website.
Offline Process:
To pay the stamp duty and property registration charges in Telangana through offline mode, you can visit the sub-registrar's office with all the required documents and pay the charges through a challan.
Conclusion
Understanding stamp duty and property registration charges in Telangana is crucial when buying property in the state. These charges significantly contribute to the overall cost of buying a property.
If you are looking to buy a house in Telangana, SMFG Grihashakti can help you get access to funds up to 90%* of the property’s value. With attractive interest rates and a hassle-free online application process, we can help you get your dream property in Telangana. Check the documents required for a home loan and apply now.
FAQ's
What happens if you don’t pay stamp duty in Telangana?
Failing to pay stamp duty in Telangana can result in serious legal and financial consequences. The property transaction will not be legally valid, therefore your ownership will not be recognised by the law. You may also have to pay a penalty for non-payment of stamp duty. Complications may also arise in the future sale or ownership transfer of the property.
Are tax benefits available on stamp duty and registration charges in Telangana?
Yes, you can claim a deduction for the amount paid towards stamp duty and registration charges under Section 80C of the Income Tax Act. The maximum amount for deductions is INR 1,50,000.
How to get a refund on stamp duty in Telangana?
If a claim for a refund is made within 6 months, you will get the amount for the Stamp Duty with 10% deducted from the total stamp duty paid. The application has to be made to the concerned District Collector/Sub-Collector/Deputy Collector/R.D.O/Tahsildar through the Sub-registrar. You must also state the reason for the refund and present the challan and the original receipt from the designated financial institution.
When is stamp duty in Telangana to be paid?
In general, stamp duty is to be paid before or at the same time that a document is being executed.
What is the validity of stamp duty challan in Telangana?
According to the Telangana Registration and Stamps Department, once the stamp duty is paid through the challan, it can be used any time by the payer.
Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.