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Purchasing a house comes with numerous expenses apart from the actual cost of buying one. Stamp duty and registration fees are among such charges that are mandatory in India. However, based on the location of the purchased property, the amount you need to pay can differ. If you are planning to buy a property in Gujarat, then it is important you are aware of the stamp duty and registration charges applicable on property purchase.
What Are Stamp Duty and Registration Charges?
Stamp duty is a tax that you need to pay on the purchase of a property anywhere in India. Every State government charges a fixed percentage of stamp duty on the market value of the property. Thus, stamp duty isn’t uniform across the country. On paying this tax, you can legalise your property documents, which can be produced in the Court of Law. At the same time, you also need to pay registration charges to get the house registered to your name. This amount is also decided by the State government and can differ for males and females.
Types of Stamp Duty in Gujarat
Types Of Transactions That Require Stamp Duty
The Indian Stamp Act of 1899 governs the taxation of various transactions using stamps. Section 3 of the Act outlines the regulations for payment of stamp duty in Gujarat on instruments, including those related to property, shares, debentures, bills of exchange, conveyance deeds, hire purchases, promissory notes, and movable and immovable assets.
Calculation Of Stamp Duty Based On The Type Of Transaction
The transaction value primarily determines the Gujarat stamp act on a property transaction. District administrations set a standard rate for the property, and transactions cannot be registered below this rate. Even if a property is purchased below the circle rate, the stamp duty is calculated on the circle rate value. If you want an easy way to calculate stamp duty rates in Gujarat, use the stamp duty calculator Gujarat.
Different Types Of The Stamp Duty In Gujarat
Registration Fees
Registration Fees
Registration Fees
1.
Transfer of the lease right
3%
2.
Lease deed 1 – 10 years
3%
3.
Sale Deed or gift deed stamp duty in Gujarat
6%
4.
Mortgage deed without the possession
1.50%
5.
Deed for exchange on the value of the property
3%
How Is Stamp Duty Calculated in Gujarat?
The stamp duty in Gujarat is calculated based on the market rate of the property you purchase. But many other aspects are also considered while deciding the tax you must pay.
The stamp duty in Gujarat is calculated based on the market rate of the property you purchase. But many other aspects are also considered while deciding the tax you must pay. Some of these factors are the age and gender of the buyer, type, and location of the property, amenities available, usage of the property, etc. Below, you can find the fixed rate of stamp duty and registration charges that the Gujarat State government has set:
Region
Stamp Duty Charges
Registration Fees
Male Homebuyers
Gujarat
4.90%
1%
Female Homebuyers
No charges applicable
Read More: How You Calculate Stamp Duty Charges Using Kotak Bank's Online Stamp Duty Calculator
How to Pay Stamp Duty in Gujarat?
In Gujarat, you can choose to complete stamp duty payment with the help of a paper-based method, e-stamping, or franking. For the paper-based process, you can purchase stamp papers from an authorized seller and pay the fees. An alternate way for stamping is by visiting a bank or a franking centre to pay the stamp duty via franking. If you want to complete the payment through e-stamping, several banks, stamp vendors, notaries, etc. facilitate this. Hence, you can easily make stamp duty payments without much hassle.
Property Registration Process in Gujarat
The Gujarat government allows property owners to register their land or property online. This is done through a website called Garvi. Here is how you can use it to register your property:
How to fill E Stamping Application form Gujarat
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What are the Documents Required for Stamp Duty Payment in Gujarat?
Below are the documents that you can keep handy while paying stamp duty and property registration charges in Gujarat:
Are there any tax benefits that you can claim for stamp duty and property registration charges in Gujarat?
Yes, you can avail of tax benefits under Section 80C of the Income Tax Act on stamp duty and registration fees paid in Gujarat.
What would happen if you do not make a stamp duty payment?
By failing to pay stamp duty or showing your real estate at an undervalued rate, you could be penalised with a hefty fine.
Therefore, knowing everything about the stamp duty and registration charges will help you plan better before buying a house in Gujarat and financing your needs with a home loan.
Recent Updates and Changes in Stamp Duty Act in Gujarat
The Gujarat government is expected to reduce stamp duty and registration fees following a significant revision in Jantri rates, which will be applicable from April 15. The proposal is currently under consideration, and a revised finance bill with new charges is expected to be introduced in the budget session in 2023.
Factors That Affect Stamp Duty in Gujarat
Below are the following factors the influence mortgage stamp duty in Gujarat.
To ensure a smooth property transaction in Gujarat, property owners must remember a few key points. Firstly, timely payment of stamp duty is essential, as it remains valid for six months in the case of domestic documents and three months for foreign records. Additionally, it is the buyer's responsibility to pay the stamp duty, not the seller's.
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