Introduction
In Hyderabad, stamp duty for property transactions is 7.5% of the property value, effective July 2022. Earlier, it was 6%. In addition, individuals have to pay property registration charges of 0.5% of the property value. These rates vary based on specific circumstances.
Table of Contents
- Introduction
- The Stamp Duty
- Stamp Duty and Registration Charges
- Property Registration Rates and Stamp Duty Value
- Stamp Duty Charges
- Conclusion
The Hyderabad housing market in India is exhibiting a continuous growth trend with increasing value. In one of the most populous metropolises in the country, Hyderabad property prices vary according to its population. Such a densely populated city organically accelerates the rate of property acquisition. However, the important thing to keep in mind before finalizing is that it includes the property price as well as stamp duty and registration rates in Hyderabad.
These charges can significantly increase the budget for home purchases. The stamp duty can change from state to state. The Indian Stamp Act of 1899 mandates stamp duty and property registration to confirm the transaction of property and to keep a record of possession.
The Stamp Duty
Governments levy a charge called stamp duty on legal documents. Usually, when assets or property are transferred, documents required to legally record certain types of transactions are subject to stamp charges. Commonly known as stamp taxes by governments.
Legal records of marriages, military commissions, and the sale or transfer of property are included in this category. Similar to income tax, stamp duty is also collected by the government. Stamp duty is considered a payment document or legal instrument.
Also admissible as evidence in court. Documents not properly stamped will not be accepted as evidence by the court. Stamp duty is payable as per Section 3 of the Indian Stamp Act, 1899. Pay in full and on time. Delay in payment of stamp duty incurs the penalty.
Stamp Duty and Registration Charges
While buying a property, an important factor to consider is the registration and stamp duty charges. The combination of stamp duty and registration charges can stretch your budget significantly, and they vary from state to state. They are primarily required to verify the sale of the property and maintain a record of the purchase.
| Type of Fee | Amount |
| Registration Fees | 0.5 percent of the property value |
| Stamp duty. | 4 percent of the property value |
| Transfer duty | 1.5 percent on property value |
| Transfer and Stamp duty due on | Consideration or MV, whichever would be higher |
Property Registration Rates and Stamp Duty Value
Buyers must know about stamp duty and registration rates in Hyderabad before purchasing a particular property. Because that amount adds significantly to the final price. The stamp duty is the same across the state.
Individuals have to pay a stamp duty of 4% of the property value on all property purchases in Hyderabad. Besides, individuals also have to pay property registration charges in Hyderabad, which are 0.5% of the property value.
Stamp Duty Charges
Stamp duty and Registration rates in Hyderabad should be calculated to calculate the final property price. Here is a simple example that demonstrates the calculation process. If a person plans to buy an apartment or a house worth Rs 40 lakh, they will have to pay a 4% stamp duty.
In addition to that, the buyer has to pay 0.5% of the house registration charges in Hyderabad. Hence, the buyer has to pay a 4% stamp duty. In addition, they have to pay plot registration charges which are Rs. 40 lakhs at 0.5%, i.e. Rs. 20,000. Therefore, the person can pay an additional Rs. 1,80,000 in stamp duty and registration rates over the actual property price in Hyderabad.
| Document | Stamp Duty | Registration Fees | Chargeable Value |
| Sale Deed (in Gram Panchayath) | 5.50 % | 2.00 percent | Market Value (Or) Consideration Which Ever Is More |
| Sale Deed (in areas other than Gram Panchayat) | 5.50 % | 0.50 percent | Market Value (Or) Consideration Which Ever Is More |
| Sale Agreement with Possession | 5.50 % | 0.5 percent | Market Value (Or) Consideration Which Ever Is More |
| (5.50 percent Adjustable) | |||
| Conveyance | 5.00 % | 0.50 percent | Market Value (Or) Consideration Which Ever Is More |
| Sale Certificate | 5.00 % | 0.50 percent | Value Identical to the Amount Paid for It |
| Construction/Development Agreement plus GPA | 1.00 percent (not adjustable | 0.50 percent (subject to a minimum of Rs.5000/- and maximum of Rs.1 lakh/-) | Whichever is More, the land value or the estimated cost of the proposed construction or development of the property. |
Conclusion
In Hyderabad, stamp duty has been fixed for property purchases across the state. Individuals have to pay a stamp duty equal to 4% of the property value for all types of property transactions. Additionally, property buyers must also pay property registration charges. Visit our Openplot to learn more. Welcome to a world where your ideal topic is just a click away!
Also read: Are you Familiar with Stamp Duty Charges in Mohali?