Stamp Duty and Property/Flat Registration Charges in Gujarat
The expenses of purchasing a house are not only limited to its cost; there are other charges that individuals have to pay. These charges include stamp duty and registration charges which are essential constituents of the total cost of a new property. Evading these costs can thrust homebuyers with future hurdles.
If you are willing to buy a property in Gujarat, you must know about these essential charges. In this piece, we have gathered crucial information regarding fees of registration and stamp duty in Gujarat. Read along!
What Are the Property Registration and Stamp Duty Rates in Gujarat?
Stamp duty is a tax that individuals pay to the Government for purchasing property in any state of India. This tax is collected to manage different types of deeds and documents having financial transactions, execution or obligation.
Stamp duty is applicable on registration of property purchase, sale or transfer of immovable property.
Stamp duty rates in Gujarat depend on income group, municipal area or gender. These rates have undergone several changes in the previous years and now is set at 4.9% (earlier it was 16%). The basic rate of stamp duty in Gujarat is 3.50% and the total rate is 4.90%.
Follow the table mentioned below to get a clear idea of the rates of stamp duty on property in Gujarat.
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Current Stamp Duty and Registration Charges in Gujarat
New Stamp Duty Rates in Gujarat [1]
| Basis Stamp Duty Rates | 3.5% |
|---|---|
| Surcharge @40% on basic rate | 1.4% |
| Total stamp duty charges | 4.9% |
Stamp Duty on Different Property Deeds in Gujarat
Below is the given stamp duty percentage in Gujarat on different Property Deeds,
| Serial Number | Document | Stamp Duty |
| 1. | Sale Deed / Gift Deed | 6% |
| 2. | Transfer of lease right deed | 3% |
| 3. | Exchange deed on the value of the property | 3% |
| 4. | Lease deed 1 – 5 years | 1.50% |
| 5. | Lease deed 1 – 10 years | 3% |
| 6. | Lease deed 1 – 15 years | 6% |
| 7. | Lease deed 1- 20 years | 6% |
| 8. | Lease deed above 20 years | 6% |
| 9. | On advance amount, if any | 3% |
| 10. | Mortgage deed without possession | 1.50% |
| 11. | Mortgage deed with possession | 3% |
| 12. | Trust deed | ₹50/- |
| 13. | Family settlement | ₹50/- |
| 14. | Amendment deed | ₹5/- |
| 15. | Relinquishment deed | ₹50/- |
| 16. | Redemption deed | ₹30 |
| 17. | Decree | 1.50% |
| 18. | Partnership deed | ₹25 |
| 19. | GPA | ₹15 |
| 20. | Cancellation of GPA | ₹15 |
| 21. | SPA | ₹5 |
| 22. | Cancellation of SPA | ₹5 |
| 23. | Adoption deed | ₹40 |
| 24. | Sub GPA | ₹15 |
| 25. | Cancellation of sub GPA | ₹15 |
How to Calculate Registration Charges and Stamp Duty in Gujarat?
Registration charges are paid over and above the stamp duty charges and vary from one state to another.
Follow the given example to get a clear understanding of the registration fee calculation process.
Suppose Mr Kumar has bought a property of ₹3 lakhs. The total amount he has to pay is discussed in the table.
| Property value | ₹30,00,000 |
|---|---|
| Stamp duty charges | ₹30,00,000 * 4.9/100 = ₹1,47,000 |
| Registration charges | 30,00,000 * 1/100 = ₹30,000 |
| Total Cost | Rs 30,00,000 + Rs 1,47,000 + Rs 30,000 = Rs 31,77,000 |
On the other hand, Mrs Kumar has separately bought a property worth ₹3 lakhs. The total amount they have to pay is discussed in the table.
| Property value | ₹30,00,000 |
|---|---|
| Stamp duty charges | ₹30,00,000 * 4.9/100 = ₹1,47,000 |
| Registration charges | Nil |
| Total Cost | ₹ 30,00,000 + ₹ 1,47,000 = ₹ 31,47,000 |
The calculation process follows the registration charge rates applicable within the State of Gujarat. These charges are discussed in a tabular format. Read along!
| Gender | Registration Charges |
|---|---|
| Male | 1% |
| Female | No Registration charges |
| Joint buyer (male and female) | 1% |
| Joint buyer (female and female) | No Registration charges |
There are certain additional charges for registration. These include,
- Folio Fees- ₹10
- Index Fees- ₹10 per page
- Advocate Fee
Apart from using the property registration charges manually, property owners can take the help of a stamp duty calculator in Gujarat. Here is a step by step guide to using a stamp duty calculator.
Steps to Use a Stamp Duty Calculator in Gujarat
- Step-1- Visit the official website of Garvi and click on ‘Calculators’ on the home page.
- Step-2- Next, tap on the “Calculator” option, available on the right side of the screen and click on ‘Registration Fee Calculator’.
- Step-3- Finally, select ‘Article’ and click on ‘Calculate Registration Fee’.
Registration Fees amount will display on the screen.
How to Pay Stamp Duty and Registration Fees in Gujarat?
In Gujarat, property owners can pay stamp duty charges via offline and online methods. These are,
Offline Payment of Stamp Duty in Gujarat
- Paper-based Method: Here, property owners have to purchase stamp papers from authorized sellers and pay stamp duty.
- Franking: Here, property owners have to visit the banks or Franking centre and pay stamp duty in Gujarat via Franking.
Online Payment of Stamp Duty in Gujarat
- E-stamping: It is an online method of paying non-judicial stamp duty on property. E-stamp in Gujarat is valid.
After paying the stamp duty in Gujarat, property owners have to pay to register their property under the Indian Registration Act with a sub-registrar.
Points to Consider Before Paying Stamp Duty in Gujarat
There are certain points that property owners must remember before stamp duty in Gujarat. These are,
- If property owners pay stamp duty on time, it remains valid for 6 months.
- If stamp duty is paid on foreign documents, it remains valid for 3 months.
- The buyer must pay stamp duty, not the seller.
What Are the Factors That Affect Stamp Duty in Gujarat?
Here is a list of factors that affect stamp duty in Gujarat,
- Age of the property
- Age of the owner
- Gender of the owner
- Purpose
- Location
- Amenities
Are Tax Benefits Available on Stamp Duty and Registration Charges in Gujarat ?
Property owners can claim tax benefits under Section 80C of the Income Tax Act on the stamp duty and registration charges paid in Gujarat.
Read the details on fees regarding registration and stamp duty in Gujarat and pay them accordingly to legalize your property within the state.
FAQs Stamp Duty and Property Registration Charges in Gujarat
What is the penalty for delaying stamp duty payment?
Delaying stamp duty payments in Gujarat can lead to a penalty ranging from 2% to 200% of the total payable amount.
What are the required documents for paying stamp duty in Gujarat?
The required documents for paying stamp duty in Gujarat includes Sale agreement and deed, Builder-buyer agreement, Identity proofs such as PAN Card, passport, driver’s license, etc. of both buyer and seller, Proof of payment made to the seller, Original copy of a power of attorney, Khata certificate.
Is e-stamping effective in Gujarat?
Yes, e-stamping is legal or effective in Gujarat. It is also allowed in private and nationalised banks, stamp secretaries, stamp vendors, notaries, non-banking finance companies, chartered accountants and CSC centres. One can avail the e-stamping facility through Stock Holding Corporation of India Ltd.
Is it required to pay a stamp duty on transfer of property between family members in Gujarat?
Yes, deeds regarding exchange of property are chargeable. For instance, for the sale or gift deed and exchange deed on the value of the property, the applicable stamp duty in Gujarat is 6% and 3%.
What is the difference between registration charges and stamp duty in Gujarat?
Stamp duty is calculated depending on the property’s market value. On the contrary, registration charges are the total cost of documenting the property ownership. In case of Gujarat, the applicable registration charge is 1% of the property value. At the same time, the applicable basic and total stamp charge is 3.5% and 4.9% respectively.