Stamp Duty and Property/Flat Registration Charges in Madhya Pradesh
Stamp duty is a duty to pay with the market value of any property to register that with the owner’s name. This procedure prevents any dispute, grievances or illegal activity over your property. Any kind of property documents, transfer or gift assets is also subject to stamp duty charges.
Being one of the states with high stamp charges, Madhya Pradesh generates significant revenue from it. However, the state government has reduced the stamp duty in Madhya Pradesh in September 2020. They announced a 2% cut on stamp duty charges which helped mobilise the stagnant housing industry after the covid-19 pandemic.
What Are the Registration and Stamp Duty Charges in Madhya Pradesh?
Stamp duty and registration charges in Madhya Pradesh were previously 12.5% (9. 5% stamp duty and 3% registration charges). But on 7th September 2020, the state government announced a reduction of 2% on the charges till 31st December 2020. The revised stamp duty charges remained 10.5% till today for properties in municipal areas.
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What Are the Current Stamp Duty and Registration Charges in Madhya Pradesh?
| Ownership | Stamp Duty | Registration Charges |
| Male | 7.5% | 3% |
| Female | 7.5% | 3% |
| Co-ownership | 7.5% | 3% |
What Are the Stamp Duty on Different Documents in Madhya Pradesh?
| Document Type | Stamp Duty |
|---|---|
| Stamp duty on lease deed in Madhya Pradesh | 8% of total rent and deposit |
| Stamp duty on gift deed in Madhya Pradesh to family members) | 1% of the market value of a property that must exceed ₹1000 |
| Gift deed in Madhya Pradesh to others | 5% of a property’s market value |
How to Calculate Registration Charges and Stamp Duty in Madhya Pradesh?
You can calculate your payable stamp duty in Madhya Pradesh based on the ready reckoner rates and property value. To compute the rates, you must consider whichever is the highest among these.
The ready reckoner is a minimum rate which you must pay to buy a property. While the property value is the market value of your property decided and agreed by both parties.
Now, suppose the market value of your property is ₹50,00,000, and the ready reckoner rate is ₹45,00,000. In this case, calculate the charges on the market value. Here is how-
| Reckoner Rate | ₹5,000 per sq. m |
|---|---|
| Land Size | 1,000 sq.m |
| Total Value | ₹50,00,000 |
| Stamp Duty | 7.5% of ₹50,00,000 = ₹3,75,000 |
Let’s calculate the registration fees as well-
| Property Cost | ₹50,00,000 |
|---|---|
| Registration Fees | 3% of ₹60,00,000 = ₹1,50,000 |
How to Use a Stamp Duty Calculator?
You can save your time and effort if you calculate the Stamp Duty in Madhya Pradesh using a calculator. This takes to complete a few simple steps as follows:
- Step 1: Visit the stamp duty calculator page and choose your state, i.e., Madhya Pradesh under the Stamp Duty Details section.
- Step 2: Enter the amount of ready reckoner rate or property value, whichever is the highest.
- Step 3: Click on “Calculate Stamp Duty” to find the result on the screen.
Online Procedure
The online procedure takes less of your time and a few easy steps as follows:
- Step 1: Log in to the official website of the Commercial Tax Department, Government of Madhya Pradesh.
- Step 2: Then log in to the E Stamp Verify, enter the details required and make the payment required for your stamp duty charges.
Offline Procedure
You can pay your stamp duties through the following process -
Franking
You can visit any government-designated bank or post office across the state to submit your stamp duty.
Visiting the Office
You can pay the stamp duty by visiting the sub-registrar’s office on a purchase or sale of your property.
What Are the Factors That Influence Stamp Duty in Madhya Pradesh?
Several factors can influence the Stamp Duty in Madhya Pradesh, such as -
| Factors | Effect on Stamp Duty Rates in Madhya Pradesh |
|---|---|
| Usage and Type of a Property | Stamp duty charges vary based on the commercial and residential property. These are typically higher for commercial property than residential or personal ones. |
| Location of a Property | Stamp duty rates are generally higher in municipal or corporation locations of an urban area |
| Amenities and Facilities | If your property is well equipped with high tech amenities, the price will be higher. This will lead to higher stamp duty for the property. |
| Age of a Property Status | Older properties will have a lower stamp duty than newer properties. |
Are Tax Benefits Available on Stamp Duty and Registration Charges in Madhya Pradesh?
Yes! You can claim a tax deduction on the stamp duty charges under Section 80C of the Income Tax Act. The act provides a maximum deduction amount of ₹1,50,000. You can claim the tax deduction only on the year of sale or purchase transaction while filing your IT return.
The deduction on Stamp Duty in Madhya Pradesh was a big step forward to boost the housing industry. In addition, the increase in property registration generated remarkable revenue growth. With a lowered stamp rate, it becomes easy for purchasers to buy their dream property in Madhya Pradesh.
FAQs About Stamp Duty and Registration Charges in Madhya Pradesh
What is the current registry rate in Madhya Pradesh?
After the revised stamp duty charges, the registry rate is 10.5% (7.5% stamp duty and 3% registration charges).
Is GST included in stamp duty in Madhya Pradesh?
No, stamp duty is charged separately than GST on a purchase or sale of a property.
What are the documents required for registration of property in MP?
For property registration in Madhya Pradesh, submit the following documents:
- Two passport size photographs
- Identity proof-passport, Aadhaar card, PAN card, voter ID card, driving licence, among others
- Residence proof of both buyer and seller
- Duly filled Form-60
- A copy of PAN card (owner or buyer)
- Payment receipt of stamp duty in MP and registration charges