Stamp Duty and Property/Flat Registration Charges in Hyderabad

Buying a house is one of the most important decisions anyone makes. Total amount of a property depends on so many factors, one of which is stamp duty. 

If you are looking forward to buying any property in Hyderabad, read the full article to know the current stamp duty and registration charges in Hyderabad.

The stamp duty in Hyderabad has not changed since 1st April 2013. Stamp duty is 4% for properties that fall under Municipalities and Corporations. The figures remain the same for other areas in the case of apartments. Stamp duty rate is 5% for GPA and sale agreements.

Read more about Property Insurance in India

Individuals can use a stamp duty calculator to avoid the hassle of calculating stamp duty manually and save time. Follow these steps to use a stamp duty calculator -

• Step 1 - Visit any website containing a Stamp Duty Calculator.
• Step 2 - Select the state where your property belongs.
• Step 3 - From the drop-down menu, select your gender.
• Step 4 - Enter the price of property for which you want to calculate the stamp duty.
• Step  5 - Finally, click on ‘Calculate’, and the applicable stamp duty will appear on your screen.

Individuals can pay the stamp duty and registration charges in Hyderabad online using the following steps – 

• Step 1 – Visit the official website of the Registration and Stamp Department and look for ‘E-payments’ under the ' Online Services' option. 
• Step 2 – A new page will open with three options, ‘Document registration e-challan’, ‘Non-registration e-challan’, and ‘Franking services e-challan’. 
• Step 3 – Once you complete registering yourself, you will receive a twelve digit challan number and a five-digit passcode through SMS.
• Step 4 – Then, go to the payment option. Here you can print the passcode and challan number. A disclaimer page will open. 
• Step 5 - On agreeing to it, you will be redirected to the SBI ePay. Select to pay the charges either online. Select Credit/ Debit card, NEFT or Net banking.

After completing payment, you will receive a 'successful' status message. This website will generate a duplicate challan containing the SBI ePay confirmation reference number. Print this challan and submit its copy and other documents to the sub-registrar at the time of property registration.

Individuals can pay registration charges and stamp duty offline, either via stamp papers or franking.

Some essential points to keep in mind before paying stamp duty charges in Hyderabad are as follows:

• All properties must be stamped before registration or within the next working day from the day of execution. If a property deed is outside the territory, it should be stamped within three months. Execution, here, means the signature of both parties involved in the transaction.
• Date of the issued stamp should not be more than six months from the transaction date.
• The stamp paper must contain the name of individuals involved in the transaction. 
• Individuals can pay stamp duty in Hyderabad using adhesive stamps. These adhesive stamps are removed during execution to avoid reusing stamps.

According to Section 80C of the Income Tax Act 1961, expenses related to registration and stamp duty charges are eligible for tax deductions. However, the maximum deduction limit is ₹ 1,50,000.

One can claim the tax deductions under following circumstances –

• Individuals can claim tax benefits when they make the actual payment in the same year.
• Construction of the property is complete, and you are the legal owner of the property.
• Co-owners can claim a tax deduction. However, the maximum deduction limit remains the same as ₹ 1,50,000.
• If there is a property transfer within five years of purchase, you have to pay the tax in the assessment year when you transferred the property.

Therefore, before buying any property in Hyderabad, make sure to check the stamp duty and registration charges in Hyderabad. These entities have an essential role to play in deciding the final value of the property.