Introduction
Taxes are the main source of revenue for the government of Andhra Pradesh. From the annual property tax to stamp duty on properties and the registry fees, all these levies help local authorities carry out their duties effectively, including infrastructure development. In this article, we provide detailed information for consumers looking for concessions on property tax, stamp duty, and registration fees in Andhra Pradesh.
Table of Contents
- Stamp Duty and Registration Charges in AP
- Registration Charges in Andhra Pradesh in 2024
- Registration Charges in AP in 2024 on Conveyance Deed
- Registration Charges in AP in 2024 on Sale agreement
- Stamp Duty Refund in Andhra Pradesh
According to Section 17 of the Indian Registration Act 1908, immovable property sale transactions must be registered in the office of the registrar within six months of the execution of the deed. Registration is essential to protect the ownership title and prevent unwanted fraud in the future.
Moreover, it serves as proof that someone has misused the original documents on the property. To register a property, the home buyer is required to pay a fee. That means paying stamp duty and registration charges to the state registration and stamp department.
Stamp Duty and Registration Charges in AP
In the state of Andhra Pradesh, stamp duty and registration charges for property are determined by the market value, or Ready Reckoner Rate (RRR). Market value is the price at which the property fetches in the open market. While RRR is the lowest value at which the property can be registered. It is essentially a rate set by the government, which is fixed annually. Property tax is calculated based on the location, type, and age of the property.
While registering a property in Andhra Pradesh, stamp duty and registration charges are calculated based on the market value, or RRR. Whichever are less counts. That means if the market value of the property is more than the RRR. The stamp duty and registration charges will be calculated based on the RRR. Understanding this calculation process will help ensure you are aware of the costs of registering property with the state.
For example, the RRR of a particular area is Rs. 4,000, and the market price at which the property was purchased is Rs. 5,000. However, stamp duty and property registration charges may be calculated based on a variable amount. per sq. ft., Rs 4,000 per sq. ft., and Rs. 5,000 between.
Registration Charges in Andhra Pradesh in 2024
Below is a detailed understanding of stamp duty calculation in Andhra Pradesh along with the registration fee with the help of the below example.
For example, if Mr. Sunil pays to buy an apartment worth Rs 80 lakhs, then the applicable stamp duty is five percent. The registration charge is one percent, and the transfer duty is 1.5 percent.
| Stamp duty: 5 percent of Rs 80 lakhs = Rs 4 lakhs Registration charge: 1 percent of Rs 80 lakhs= Rs 80,000 Transfer duty fee: 1.5 percent of Rs 80 lakhs = Rs 1.2 lakhs |
- So, the total registration cost will be = Rs 4 lakhs + Rs 80,000 + Rs 1.2 lakhs = Rs 6 lakhs
- And the final cost of the property will be Rs 80 lakh + Rs 6 lakh = Rs 86 lakh
Registration Charges in AP in 2024 on Conveyance Deed
Stamp duty and Registration Charges in AP in 2024 on Conveyance Deed.
| Type of document | Registration charges | Stamp duty | Transfer duty |
|---|---|---|---|
| Sale Deed | 1 percent | 5 percent | 1.50 percent |
| Gift (by a family member) | 0.50 percent | 2 percent | 1.50 percent |
| Exchange | 0.50 percent | 5 percent | 1.50 percent |
| Partition | Rs 1,000 | 2 percent | Nil |
| Release | 0.5 percent (subject to a minimum of Rs 1,000/- and maximum of Rs 10,000/-) | 3 percent | Nil |
Registration Charges in AP in 2024 on Sale agreement
Stamp duty and registration charges in Andhra Pradesh in 2024 on sale deed are explained in the table below.
| Type of document | Registration Charges | Stamp duty |
|---|---|---|
| Agreement of sale | Rs 2,000 | 5 percent |
| Development agreement | 0.5 percent (Capped at 20,000) | 5 percent |
| Construction agreement | 0.50 percent | 5 percent |
| Agreement of sale-cum-GPA | Rs 2,000 | 6 percent |
| Development agreement-cum-GPA | 0.50 percent | 1 percent |
| Construction agreement-cum-GPA | 0.50 percent | 1 percent |
| Lease deeds | 0.10 percent | 0.40 percent |
| Lease deeds of more than 10 years but less than 20 years | 0.10 percent | 0.60 percent |
Stamp Duty Refund in Andhra Pradesh
A party can claim a refund of stamp duty in Andhra Pradesh only within six months from the date of issue of challan. The party seeking a refund of stamp duty shall make an application through the Sub-Registrar, under Section 2(9) of the IS Act to the concerned District Collector or Deputy Collector, Tehsildar stating the reason for the refund. They have to attach the original challan issued by the bank along with the application.
After the sub-registrar receives such an application, they verify the genuineness of the challan. Ensures that it has not yet been used. Based on their verification, they issue a certificate. Thereafter the amount is repaid with a standard deduction of 10 percent.
The Government of Andhra Pradesh is in the process of online payment of digital stamps and IGRS AP Deed details at Village/Ward Secretariats. Signed a Memorandum of Understanding (MoU) with Stock Holding Corporation of India Limited (SHCIL) for the sale of digital stamps. About 3,000 centers will be set up in different areas for the sale of digital stamps.
Conclusion
The government of Andhra Pradesh launched e-stamping services of the Stamps and Registration Department in April 2023. People can pay stamp duty and registration fees directly through e-stamping. So, this facility facilitates easy registration. Now, people can pay through the e-stamping application on their mobile phones using the SHCIL official website or UPI. For more information, visit openplot.
Also read: Property Tax in Andhra Pradesh 2024: Do You Know About It?