Stamp Duty and Property Registration Charges in Punjab

stamp duty in punjab — (Source: thehansindia.com)

While purchasing any property, buyers need to pay stamp duty and registration charges to the State Government. The Government levies this charge to register the property against the owner's name in the municipal records.

As per Section 3 of the Indian Stamp Act, 1899, it is mandatory for a buyer to pay stamp duty charges while registering a property.

Further, these charges vary across states. In this particular piece, you will find details on the Punjab stamp duty and the applicable registration fees.

What Are the Stamp Duty Rates in Punjab?

The Punjab cabinet has revised the stamp duty rates in order to mobilise additional resources for the state. After the amendment of Schedule 1-A of the Indian Stamp Act, 1899, stamp duty rates on 17 out of 65 items are expected to double.

As per recent news, the Punjab government granted an exemption of 2.25% in stamp duty and fees to those registering their property/land by March 31, 2023.

What Are the Present Stamp Duty and Registration Charges in Punjab?

Stamp duty in Punjab is also inclusive of the social infrastructure cess. Given below is a table showing present stamp charges in Punjab:

Gender	Stamp Duty	Registration Charges
Male	7%	1%
Female	6%	1%
Joint (Male + Male)	7%	1%
Joint (Male + Female)	6%	1%
Joint (Female + Female)	5%	1%

Stamp Duty on Different Property Deeds in Punjab

Here are the stamp duty rates in Punjab on different property deeds:

Deed Name	Stamp Duty in Punjab	Registration Fee
Sale/ Gift	5% of the Consideration amount + 1% of SIC (Social Infrastructure Cess)	1% of the Consideration amount (Max. ₹2 lakhs)
Transfer of property	Nil	Nil
General Power of Attorney (upto 5 people)	₹2000/-	₹400/-
General Power of Attorney (more than 5 people)	₹4000/-	₹400/-
Special Power of Attorney	₹1000/-	₹100/-
Cancellation of GPA	₹1000/-	₹100/-
Cancellation of SPA	₹500/-	₹100/-
Mortgage Deed (without Possession)	4% of the Consideration amount	1% of the Consideration amount (Max. ₹2 lakhs)
Mortgage Deed (with Possession)	4% of the Consideration amount	1% of the Consideration amount (Max. ₹2 lakhs)

How to Calculate Registration Charges and Stamp Duty in Punjab?

District administrators fix a standard rate for land and other properties, known as circle rates or guideline values. During property registration in Punjab, if the price of a property is less than the guidance value, there will be stamp duty charges only on this value.

On the contrary, if the transaction is higher than the circle rate, there will be an applicable stamp duty based on the deal value and not just the guidance value.

Now, let's look at a simple illustration to understand Punjab stamp duty charges for a flat in Ludhiana.

Value of the property as per the sales deed	₹50 lakhs
Property's value as per the circle rates	₹40 lakhs
Stamp duty	7% of ₹50 lakhs = ₹3.5 lakhs
Registration charge	1% of ₹50 lakhs = ₹50,000

To further simplify the calculation of stamp duty and registry rate in Punjab, one can use a stamp duty calculator online.

What Are the Steps to Use a Stamp Duty Calculator?

To evaluate stamp duty and property registry charges in Punjab by using a calculator, follow these simple steps -

Step 1: Visit IGR SARATHI and choose from options like "Sale Deed", "Agreement to Sale", etc., based on your requirement.
Step 2: Choose a Municipal Corporation or Gram Panchayat area where you belong.
Step 3: Submit the consideration property value and market value to evaluate the stamp duty in that area.

How to Pay Stamp Duty and Registration Fees in Punjab?

During online registration of property in Punjab, individuals can opt for online and offline stamp duty payment modes.

Online Procedure

Buyers can pay Punjab stamp duty online after purchasing e-stamps from the StockHolding portal.
Fill up the application form with the required details.
Pay the stamp duty charges by selecting your preferred payment mode and take a printout of the receipt.

Offline Procedure

You can visit the Authorised Collection Centre (ACC) or the Central Record Keeping Agency (CRA) and manually fill up the e-stamping application form. In this mode, you can pay the charges via cheque, cash etc. and obtain an e-stamp certificate from the branch office.

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

Here are the points to consider before paying plot registration charges in Punjab -

All the assets available for stamp duty must be stamped before registration.
Stamp papers should be in the name of the individual involved in the transaction.
You can pay Punjab stamp duty by franking. For this, you will need a franking agent such as banks etc. Under this method, the transaction details are printed on paper, and individuals submit it to the banks along with stamp duty charges. The bank then stamps on the agreement using a franking machine.
The issued stamp paper's date must not be more than 6 months from the date of transaction.

What Are the Factors That Affect Stamp Duty in Punjab?

Here are some factors that affect Punjab property registration charges and stamp duty -

Age and Gender of a Property Owner: States like Punjab offer a 1% rebate on stamp duty charges to female property purchasers.
Property's Location: Generally, stamp duties are higher for municipal limits of an urban area and lower for the rest areas.
Type of Property: Stamp duties and registration charges also depend on the type of property you are purchasing. For instance, commercial properties come with a higher stamp duty than residential ones.
Available Amenities: High-end amenities in a property means higher stamp duty charges. Therefore, the facilities in a property also constitute a determining factor of its stamp duty.

Are Tax Benefits Available on Stamp Duty and Registration Charges?

According to Section 80C of the Income Tax Act, 1961, registration charges and stamp duty are eligible for a tax deduction of up to ₹1,50,000. Furthermore, individuals can avail tax deduction under the following circumstances -

During the actual payment year of registration fees and stamp duties
Post property construction, when you are a legal owner.
Only if you own residential property
Co-owners can enjoy tax deductions on their returns. However, if a taxpayer possesses complete or partial property, he or she cannot claim deductions.
In case there is a property transfer within 5 years of purchase, you need to pay taxes in the assessment year during which you transferred the property.

It is evident that a taxpayer can enjoy a number of perks by paying Punjab stamp duty charges. For a successful payment process, you can consider going through the aforementioned pointers.

FAQs About Stamp Duty and Property Registration Charges in Punjab

All

Are Punjab stamp duty charges refundable?

No, these charges are non-refundable.

Does a home loan cover stamp duty and registration charges?

No, stamp duty and registration charges are not included in the sanctioned home loan amount.

What is the stamp duty in Punjab for male and female joint owners?

The stamp duty rate is 6% for male and female joint owners in Punjab.

What happens if there is a property transfer within 5 years of purchase?

In case there is a property transfer within 5 years of purchase, you need to pay taxes in the assessment year during which you transferred the property.