Stamp duty and registration charges of a residential property in Hyderabad- basics simplified for home buyers!

Stamp duty and registration charges form a significant chunk of a residential property, and budgets need to include these charges as you plan your residential home. 

Payment of Stamp duty are mandated as per the Indian Stamp Act, 1899, and this validates the sale of the property and maintain a record thereof.

The Stamp Duty rate in Hyderabad has been revised to 7.5% (July 2021 onwards) along with a registration fee of 0.5%, besides a transfer fee of 1.5%.

Telangana government increased registration charges as well as guideline value for land from July 2021 onwards. Post the state of Telangana came into existence, land value has appreciated. The ‘Guidelines Market Value’ (Basic Value) for registration was last revised in 2013.

• The lowest value for agricultural lands- INR 75,000 per acre
• For open residential plots, the lowest value has now been revised to INR 200 per square yard (from earlier INR 100 per sq. yard)
• The lowest value for apartments stands revised to INR 1,000 per sft (as against INR 800 per sft earlier)
• Stamp duty rates in the Telangana is still one of the lowest in the country

Total stamp duty and registration charges- explained with an example

Assumption– residential property in a certain locality XYZ in Hyderabad costs Rs 5,000 per square feet. Let us see how the calculation of total stamp duty and registration charges works out-

• No plot or house sold in this locality XYZ can be sold for less that Rs 5,000 per sft. Selling above this price is fine
• If a home buyer purchases a property of 2000 square feet in locality XYZ in Hyderabad at Rs. 5,000 per square feet, the guidance value INR 5,000 x 2000 sft = INR 1,00,00,000 (Rs 1 Crore)
• Stamp duty at 7.5% of the market value (Rs 1 Crore) = Rs 7.5 Lakh
• Registration Charges at 0.5% of saleable value (Rs 1 Crore) = Rs 50,000
• Total stamp duty and registration charges Rs 7.5 lakh + Rs 0.50 lakh = Rs 8 lakh

6 factors determine Stamp Duty Charges in Hyderabad

1. Age of property
   • Newer properties are more expensive than older ones, and attract a higher charge on stamp duty
2. Age of property owner
   • Older individuals at times get a discount on stamp duty like a senior citizens subsidised stamp duty charge
3. Gender of property owner
   • Women get a subsidised stamp duty charge roughly
4. Nature of property
   • Residential properties attract lower stamp duty charges compared to commercial property
5. Property location
   • Urban properties in posh localities are charged higher on stamp duty as compared with sub0urban and rural localities
6. Amenities
   • Lesser the amenities lower the stamp duty charges
   • Properties with amenities like gymnasium, play area, elevators, spa, swimming pool, clubhouse etc. will attract a higher stamp duty

With the above perspective, a home buyer can plan the budget for buying a residential property in Hyderabad.

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