Everything you need to know about stamp duty and plot registration charges in Hyderabad/Telangana

Stamp duty and property registrations are some of the most significant sources of income for the Government of India. Even when you have found your dream property, stamp duty payment and property registration still remain the most important factors that need your consideration. If you are residing in Hyderabad/ Telangana, you must be aware of the skyrocketing real-estate prices here. This was why many people earlier remained concerned about the heavy stamp duty and registration charges. 

However, after the advent of the global pandemic, the real estate developers in Telangana have asked for a reduction in the price of stamp duty and property registration to enhance the demand for properties in Hyderabad. Stamp duty and property registration charges in Telangana/Hyderabad is usually paid at the time of execution of a property document, by placing non-judicial stamps to the document or with the help of e-stamps, (in case of stamp duty) dispatched into any accredited bank in favor of the Inspector General of Registration and Stamps and Head of Account of the Commissioner Telangana, Hyderabad.

Step-by-step process to register property in Telangana & Property Registration charges

For registering property in Telangana, the purchasers are necessitated to register the acquired property in their name to receive absolute ownership. The Telangana Registration and Stamp Department is in charge of all the property registration matters in the State. To register a property in Telangana, the purchaser and seller must visit the nearest office of the sub-registrar to pay the registration charges and stamp duty. 

List of documents needed to register a property in Telangana:

There are some compulsory documents that you need to submit at the time of registering a property in Telangana. These documents can be easily uploaded online on the IGRS (Integrated Grievance Redressal System) portal before visiting the sub-registrar's office for property registration in Telangana. Mentioned hereunder is the list of documents that are required for registration. 

• Original documents of the property 
• Unique Property card
• Photo identification proofs along with address proofs such as Pan Card, Aadhaar Card of the seller, purchaser, and witnesses
• Encumbrance Certificate
• Power of Attorney 
• Passport-size photographs of the purchaser and seller
• In the case the property is agricultural land then, a pattadar passbook is needed
• Stamp duty and property registration charges payment receipt
• Photocopy of Section 32A

The lease deed or the sale deed must be filed in the sub-registrar office within 24 hours of the purchase and sale. The documents submitted will be scanned thoroughly and returned to the buyer and seller once verified. The encumbrance document will also be provided within one hour by the senior assistant to the sub-registrar. You can further request for market rate to understand the real-estate rates in a specific locality; these details will also be presented within one hour.

Step by step process to register a property in Telangana 

To assist you with your property registration in Telangana, enumerated below is a step-by-step process that you can follow.  

• The initial step in this process is to log in to the Registration and Stamp Department and create an account with your Email Id.

• Once you have created an account, complete the document uploading process and then move on to paying the necessary registration and stamp duty charges. 

• After making the payment and uploading all the documents, you can schedule a date to visit the sub-registrar office for your property registration.

• Make the required changes if demanded by the sub-registrar for the uploaded records. You can also receive a checklist at the sub-registrar office. 

• Once the submitted documents are approved by the sub-registrar, an e-KYC (Know Your Customer) process is carried that is verified with the national Aadhaar database.

• Apart from the KYC, the Challan copy of property registration charges, stamp duty and other charges will also be verified. Once the registrar is done with the verification, the registration process will be carried further.

• A document number of the property will be generated along with collecting the thumb impressions for registering the property.

• The application of the property registration will be scanned and updated by the sub-registrar. This application will further be uploaded on the online portal for future use.

How to calculate Hyderabad/Telangana stamp duty and registration charges?

Stamp duty charges is a rate that is different states and they charge a set percentage on the cumulative cost of a property. Stamp duty charges and property registration charges additionally vary based on the type of the property like commercial or residential along with the nature of the area like urban or rural. Stamp duty is calculated just on the cumulative saleable value of your property. 

This sizable value of the property is calculated by initially multiplying the area of your property with its market value or the guidance value provided by the contractor or builder. In addition to this, the car parking costs and floor augmentation, or PLC (Preferential Location Charges) are computed to provide the cumulative saleable value of the property. 

Saleable Value = Primary Cost (Guidance Value x Size of property ) +Floor Rise Premium and PLC (Preferential Location Charges) + Parking Charges (if any).

After taking out this sizable value, the stamp duty charge is calculated at a rate of 4 percent along with the calculation of property registration charges at a rate of 1 percent on the total sizeable value. 

Stamp duty and registration charges in Hyderabad/Telangana

While procuring property in Telangana, it is necessary to take into deliberation the stamp duty and registration charges as well. The main reason for this is because these charges can considerably increase your set budget. Property registration charges and stamp duty are sanctioned under the Indian Stamp Act, 1899 principally to authorize the marketing of the property and keep a record of the acquisition. The stamp duty and registration charges in Telangana are stated below:

Corporations and Municipalities

Other Areas

Apartments and Flats

Sale Agreement and GPA

Sale Agreement With Possession

Complete Process to pay stamp duty online

This process to pay stamp duty online in India is extremely easy and effortless for everyone to perform and implement. This process of stamp duty payment can be performed on the sanctioned cloud platform of the Stock Holding Corporation of India Limited within minutes. The steps included in the process of paying online stamp duty is as follows.  

1. The initial step that you need to follow to pay stamp duty online is to go to the E-Stamping website. The link to this e-stamping website is https://www.shcilestamp.com/.

1. All the initial-time visitors who come on this website for paying the online stamp duty are required to register on this portal by entering their email id. Once you enter your email address, a verification link will be sent to your email address for password generation. Once you create a password, you can easily log in to this process.

1. Once you have successfully logged in to the portal, you can choose your state from the drop-down menu that appears on the top of the menu. Once you have chosen the appropriate state, you will be required to determine the alternative to discover the “Most proximal SHCIL Branch”.

1. After performing this step, you will be required to fill in all your necessary details like the name of the first party i.e. the seller, the name of the second party i.e. the buyer, property number, name of the person paying stamp duty along with the total stamp duty amount.

1. Once you fill in all these specifications, you will receive an online reference acknowledgment number. 

1. You can take a printout of this presented Online Reference Acknowledgement Number and go to the nearest financial institution or bank branch to receive the ultimate printout of the e-stamp document. 

1. The charges of stamp duty can be easily paid online in different modes of payment like cheque, cash, demand draft, RTGS, NEFT, and pay order, bank to bank transfer.

Aspects that determine stamp duty and registration charges

Stamp duty and property registration fees are charged by the government at the time of selling the property. The different states command it as per their special laws and the rates of these stamp duty and property registration charges differ from one state to another. 

Stamp duty and property registration include the primary document which holds the title details like the name of the owner which assures you that you are buying the property from the legitimate owner. It is further obligatory to register the disposal or transfer of property, and at the point of registering the transfer, you need to pay the registration charges and stamp duty on stamp duty on the Integrated Grievance Redressal System (IGRS) Telangana. 

However, along with this, there are a lot of other aspects or factors that determine the stamp duty and registration charges. Some of the factors are mentioned below:

• Area of the property

Stamp duty and property registration charges in Telangana vary for different areas. A property situated in a city location draws more stamp duty and registration charges as compared to a property situated in a rural area. In addition to this, there is further a separate charge drawn when a property is situated in a semi-urban region.

• Nature of property

Another aspect that determines the stamp duty and registration charges is the nature of the property. For example, lower stamp duty is imposed for residential property as contrasted to commercial property. 

• Special Amenities

 In the present times, a lot of residences are being developed with ultra-modern facilities. The very is also estimated while taxing stamp duty charges. A house with more new-aged facilities like a gym, swimming pool, sports facilities clubhouse, etc. is most probable to get imposed higher when contrasted with a property that holds fewer facilities.

• Age of property

 Stamp duty and property registration charges are applied to the cumulative value of the property. It is performed by analyzing the most important factor like the age of the property that is calculated from the point the property is built. Hence, a newly built property draws more stamp duty and registration charges.

Tax benefits of Stamp Duty Charges and Land Registration Charges

When speaking of income tax, there are a lot of advantages that you can get on your Stamp duty and property registration charges. The amount paid as stamp duty and property registration charges are exempted under section 80C of the Indian Income Tax Act, 1961 and the maximum amount deducted under this section are Rs 1,50,000. 

The Bottom Line

To sum up, it can be asserted that all the stamp duty and property registration charges are an indispensable part of property purchase in India. With the help of all the points mentioned above, you can easily understand how to move forward with the stamp duty payment and property registration in Telangana/ Hyderabad. 

Brick&Bolt is a leading construction company in Hyderabad that can take care of all your stamp duty and property registration requirements along with managing your property construction. The professional squad at this organization takes into deliberation even the minutest stipulations of their customers to ensure that you get the house that you have forever craved for. Right from stock purchase to outlining blueprints to achieving it to taking care of all the government approvals, Brick&Bolt takes custody of all these construction pursuits and all this within a defined budget of their clients. Hence, it is always the right decision to leave all your property-related hassles to them.