The state government in India is in charge of defining rules and standards and managing the collection procedure. Typically, a percentage of the total transaction value is determined as the tax to be imposed. Stamp duty is a significant fee that must be paid in the event of a transfer of ownership of property in legal documents. Under the Indian Stamps Act of 1899, the payment of stamp duty serves as evidence of record in cases of property disputes. Stamp duty and property registration fees in Telangana are mandatory if you buy a house in the state.
Read on to know more and learn about stamp duty and registration charges in Telangana.
Stamp duty is the tax imposed by the State government when you buy a property from the seller. You would be considered the legal owner of the property only when you pay the stamp duty in full. It acts as a proof of ownership in court, in case any legal dispute happens. Stamp duty charges vary from state to state and are also applicable on conveyance deeds, power of attorney papers, and sale deeds.
You have to pay stamp duty and registration charges in Telangana in the following scenarios:
Refer to the table below to find the various Stamp duty rates in Telangana
|Type of Fee||Payable Amount|
|Registration Fees||0.5% of the property’s value|
|Telangana’s Stamp duty charges||4% of the property’s value|
|Transfer Duty||1.5% of the property’s value|
|Stamp and Transfer duty are based on||MV or Consideration (whichever has the highest value)|
|Type of Fee||Payable Amount|
|Registration Fees||0.5% of the property’s value|
|Telangana’s Stamp Duty Charges||4% of the property’s value|
|Transfer duty on home registration in Telangana||1.5% on the property’s value|
Details of the stamp duty and registration fees in Telangana in the case of gifts given are presented in the following table:
|Gift Type||Stamp Duty||Registration Charge|
|Gifts given to relatives||1%||0.5% (limited to a minimum of Rs 1,000 and maximum of Rs 10,000)|
|Gifts given in other cases||4%||0.5% (limited to a minimum of Rs 1,000 and maximum of Rs 10,000)|
There are different stamp duty charges in Telangana and registration fees that would vary according to the different types of partitions and settlements. Details about the same can be found in the following table:
|Partition Type||Stamp Duty||Registration Charge|
|Partition among co-owners (family members)||0.5% on VSS, subject to a maximum of Rs 20,000||Rs 1000|
|Partition among co-owners (non-family members)||1% on VSS||Rs 1000|
|Settlement amongst members of a family||1%||0.5% (limited to a minimum of Rs 1,000 and maximum of Rs 10,000)|
|Settlement amongst non-family members||2%||0.5% (limited to a minimum of Rs 1,000 and maximum of Rs 10,000)|
|Settlement caused by charitable reasons||1%||0.5% (limited to a minimum of Rs 1,000 and maximum of Rs 10,000)|
|Documentation Type||Stamp Duty Charges||Registration Charges|
|General power of attorney authorising a member of their family to transfer, sell or develop an immovable property||Rs 1,000||0.5% (limited to a minimum of Rs 1,000 and maximum of Rs 20,000)|
|General power of attorney authorising a non-family agent or others to transfer, sell and develop an immovable property||1%||0.5% (limited to a minimum of Rs 1,000 and maximum of Rs 20,000)|
|General power of attorney for any other purpose other than authorising an agent or others to transfer, sell and develop an immovable property||Rs 50||Rs 1,000|
|Special power of attorney||Rs 20||Rs 1,000 for the purpose of attestation|
Stamp duty and registration charges in Telangana are calculated according to a certain percentage of the property’s value. The following table shows the stamp duty and registration charges rates for Telangana.
|Stamp duty||4% of the property value|
|Registration charges||0.5% of the property value|
Now, let’s understand this with an example. Note that this example is for illustration purposes only.
Let’s say, a property’s cost is Rs 25 lakhs, then the stamp duty would be:
4% of Rs 25,00,000 = Rs 1,00,000 (Rs 1 lakh)
And the registration charges would be:
0.5% of Rs 25,00,000 = Rs 12,500
If you want to calculate the combined cost of your property registration and stamp duty, it would be – Rs.1 lakh + Rs.12,500 = Rs.1,12,500.
Follow the steps below to understand how to pay stamp duty online in Telangana:
Go to https://registration.telangana.gov.in/index.htm and under the Online Services heading, click on “e-STAMPS”.
Click “Document Registration eChallan”to proceed.
You will be redirected to another page where you need to fill in ‘Remitter Details’, ‘Party Details’, ‘Document Information’ and ‘Details of the Amounts Remitted’. Once done, click on ‘Register’.
After successful registration, you will receive a 12-digit challan number and a 5-digit passcode on your registered mobile number. Access the payment screen and complete the transaction using your preferred mode of payment.
A duplicate copy of the challan will be generated on successful payment, containing essential details about your transaction. This challan must be printed, and a duplicate copy must be submitted to the SRO and other required documents during property registration. The SRO will finish the process and give the endorsement of the registered document.
To pay the stamp duty and registration charges in Telangana through offline mode, one can visit the sub-registrar’s office with the required documents and pay the charges through a challan.
There are various documents that one needs to produce when registering for stamp duty in Telangana. The following list of documents are required to register for stamp duty in the state of Telangana:
The amount of stamp duty payable is determined by the type of property involved (like residential or commercial). Apart from that, the property’s location (like rural or urban) also plays a role in determining stamp duty to be paid and is included in the factors that affect stamp duty in Telangana.
If the stamp duty is left unpaid on documents, it prevents it from being accepted or used as evidence. If a transaction is made using an unstamped document, it is invalid. Instruments given to a public official (other than a police officer) will be seized. Apart from paying the stamp duty, the offender will also have to pay an additional penalty.
There is a provision to claim tax benefit on stamp duty and registration charges under Section 80C. Section 80C allows a maximum benefit of Rs. 1,50,000 for stamp duty and registration expenses. If there are joint owners, each owner may claim the tax advantage on these costs up to the amount of their respective shares of the property, but for not more than Rs. 1,50,000. Stamp duty and registration fees can only be written off in the year that the payment for them is made.
Only an individual or a HUF may deduct this expense on their income tax return. Only when the building of the property has been finished and the owner has obtained legal possession of the home is a claim for this deduction valid or tenable.
Once the fee has been paid through challan, the registering public may use the challan whenever they see fit. However, the maximum period of limitation is just 6 months if a refund of stamp duty is requested. After deducting 10% of the entire amount of Stamp Duty paid, the Stamp Duty will be repaid if the claim is made within six months.
Under section 2(9) of the I.S. Act, the party requesting a refund of stamp duty must submit an application through the Sub-Registrar to the relevant District Collector/Sub-Collector/Deputy Collector/R.D.O/Tahsildar, fully stating the reasons for the request and including a challan and receipt in original form from the designated Bank branch.
After confirming that the challan and receipt are real and haven’t been used, the Sub-Registrars will validate the scroll, P.C.R., etc. and issue the certificate to that effect. The sum will be returned in accordance with the certificate provided by the S.R. after 10% of the total Stamp Duty has been subtracted.
In conclusion, real estate purchasers in Telangana can calculate and pay the required stamp duty in Telangana’s official website accordingly. This, along with the options available in the modes of payment (online and offline) makes it a hassle-free and smooth process. Several payment gateways are supported to ease out the payments for online taxpayers and numerous locations are available for the people who prefer going and making the payment in person.
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Ans: Usually, stamp duty in Telangana is paid prior to or at the same time as when the document is being executed.
Ans: In the event that an individual does not make payment for stamp duty, the transaction will not have legal status, and thus, it cannot be accepted as evidence. Moreover, penalty charges will stand imposable upon the failure to make payment for the stamp duty.
Ans: No, they are two different taxes and are calculated separately.
Ans: One can check the status of their property registration and stamp duty payment online by visiting the official website of the Department of Registration and Stamps, Telangana. It is a fairly simple and easy way to get updates on their property registration and/or stamp duty payment status.
Ans: An individual needs to pay 4% as the stamp duty and registration charges in Telangana for a semi-furnished flat.
Ans: In order to complete the property registration and payment of stamp duty Aadhar Card is a mandatory document to be held.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.