Stamp Duty and Property Registration Charges in Kerala

stamp duty in kerala — (Source: housing.com)

The State Government imposes the stamp duty on property sale or mutual agreement between a buyer and seller. At the same time, the registration charges are levied to manage the operation of registration offices.

Individuals planning to purchase a house in Kerala should know the rates for property registration.

Keep reading to learn more about stamp duty Kerala and related variables.

What Are the Stamp Duty Rates in Kerala?

Stamp duty in Kerala is levied on the consideration value or a property transaction value as on the sale deed. The registration department of Kerala decides this value of a land.

Unlike other Indian states that charge 1% of property value as registration charge, Kerala charges around 2% as registration charge.

This increases the overall expense of purchasing a property in Kerala.

Moreover, the Kerala Registration Department has mandated the presence of buyer and seller at registration or cancellation of sales deeds.

Nevertheless, let’s check what the current stamp duty rates in Kerala on properties are.

Present Stamp Duty and Registration Charges in Kerala

Stamp duty rate in Kerala is currently 8% of the consideration value or fair value, whichever is higher. At the same time, registration charges are 2% of this consideration value or fair value.

These rates indicate that purchasing a property in Kerala is an expensive deal. Moreover, there aren’t any changes or gender-based concessions.

Following is a table explaining applicable stamp duty charges in Kerala.

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Gender/Ownership	Registration Charges	Stamp Duty
Female	8%	2%
Joint ownership (Male + Female)	8%	2%
Male	8%	2%
Joint ownership (Female + Female)	8%	2%
Joint ownership (Male +Male)	8%	2%

The Kerala registration department does not offer any specific incentive or concession on stamp duty to women house buyers. Hence, both men and women have to pay exact land registration fees in Kerala set by the State Government.

Let’s learn how to calculate the registration charges in Kerala for a detailed understanding.

How to Calculate Registration Charges and Stamp Duty in Kerala?

Stamp duty calculation in Kerala entirely depends on consideration value or a property transaction value as on the sale deed, whichever is highest.

Hence, if a property value is ₹80,00,000 and consideration rate is ₹50,00,000, then stamp duty will be charged on property transaction value.

Let’s take an example to understand Kerala land registration fees on a flat in Kochi.

Property Cost	₹80,00,000
Stamp Duty	8% of ₹80,00,000 = ₹6,40,000

Let’s calculate registration charges with the same example.

Property Cost	₹80,00,000
Registration Charges	2% of ₹80,00,000= ₹1,60,000

If individuals find the above calculation confusing, they can use a smart tool like a stamp duty and registration charge calculator.

This tool is easily available on most lending institutions or public websites. One can also access the same on their mobile.

What Are the Steps to Use a Stamp Duty Calculator?

The steps to use a stamp duty calculator are as follows.

Step 1: Visit the website offering stamp duty calculator. Scroll down and you will find the Stamp Duty Details option
Step 2: Click on the respective state and the area, such as Gram Panchayat or Municipal Corporation and proceed.
Step 3: Enter the property value and click enter.

The stamp duty will be displayed on the screen.

After calculating the payable amount, individuals can pay their respective registration charges and stamp duty on the official website.

How to Pay Stamp Duty and Registration Fees in Kerala?

Individuals can pay the registration fees and stamp duty on a property in Kerala online by following these steps.

Online Procedure

Step 1: Individuals must visit the official Kerala registration portal and register using a login ID and password. First-time users have to complete their registration and follow the steps below.
Step 2: After logging in, click on the ‘Doc Registration’ option and fill in mandatory details. Click on ‘View Token’ and select a suitable slot.
Step 3: Choose your preferred transaction type. Next, click on ‘Submit’. Fill in the remaining slots and click on the boxes as required. Enter the claimant and seller details. Then click on the power of attorney option.
Step 4: Enter the property details like area, price, property types and number. Also, select the documents you need to submit and enter witness details.
Step 5: Click on the ‘Save and Continue’ option and select the payment mode.

An acknowledgement slip will appear on the screen after successful payment.

Individuals should print this challan for future use. This document will also substantiate their property ownership during financial activities like availing a loan.

On the day of property registration in Kerala, both seller and buyer must carry this document and other property-related papers. They should also bring their identity proofs.

There is no offline procedure of stamp duty and property registrations in Kerala.

Let’s check the factors that significantly affect the stamp duty and registration charges in Kerala. This will help understand the concept better.

What Are the Points to Consider Before Paying Stamp Duty in Kerala?

Here are a few essential points you need to consider before paying stamp duty in Kerala-

The date of the issued stamp paper must not be more than 6 months from the transaction date.
All assets applicable for stamp duty must be stamped before registration or the next working day.
The stamp paper must be in the name of individuals involved in a transaction.
The adhesive stamp removed at the execution time is not available for reuse

What Are the Factors That Affect Stamp Duty in Kerala?

The stamp duty charges are calculated based on the property’s market value. Several facets impact the stamp duty charges.

Buyer’s Age - Many State Governments offer senior citizens a discount on stamp duty.
Buyer’s Gender- Women homebuyers receive a concession on stamp duty and registration charges. However, Kerala doesn’t have any such provisions.
Property Usage - The stamp duty is chargeable depending on the property usage, such as commercial or residential needs.
Location of the Property - The stamp duty for a property can vary depending on the property location.

Are Tax Benefits Available on Stamp Duty and Registration Charges?

Section 80C of the Income Tax Act of 1961 allows a tax deduction on registration charges and stamp duties.

There are also tax deductions applicable for joint owners. Here, the maximum deduction limit is up to ₹1,50,000.

Individuals can claim deduction only on new properties. However, there are no tax exemptions on residential plots, resale of property and commercial buildings.

Hence individuals thinking of purchasing a property in the state can check the above discussion on stamp duty in Kerala.

FAQs About Stamp Duty and Property Registration Charges in Kerala

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How do I authenticate the stamp duty and registration charge payment in Kerala?

After paying the stamp duty and registration charge in Kerala, every taxpayer receives an acknowledgement slip.

Do I need a NOC certificate to pay stamp duty charges in Kerala?

Yes, individuals have to submit a NOC certificate to pay stamp duty charges in Kerala.

Do I need to upload any documents during the property registration process?

Yes, you will have to upload documents during the property registration process. This includes - two passport size photographs, PAN Card, Plan of property, Id proofs of all the property owners and witnesses, NOC, sale deed, power of attorney, and municipal tax bill.