A property purchase remains incomplete without its registration and documentation in the owner’s name. Registration of a property is vital as it safeguards a buyer’s interest and property title when faced with a conflict. To legally transfer ownership, a person has to pay stamp duty and registration charges in Pune just as every other place in India.

Are you planning to purchase a property in Pune? If yes, go through this page to get the details of the charges levied by the government.

Stamp duty in Pune refers to a tax that plot buyers pay while registering their plot. It is mandatory for property owners to pay a percentage of their property’s value as stamp duty. The government collects this tax under the Registration Act, 1908.

The government of Maharashtra not only fixes the stamp duty charge in Pune but also revises it periodically. 

As per latest news, to enhance the real estate sector in the aftermath of the COVID-19 pandemic, the Maharashtra government announced a reduction in stamp duty charges from April 1, 2021, to March 31, 2022. In addition, the stamp duty was reduced from 5% to 2% for transactions involving apartments and flats in the state's urban areas.

To help the real estate sector even more, the reduced stamp duty charges have been extended until March 31, 2023.

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As mentioned above, home registration charges in Pune keep changing to decrease or increase demand. Here is a list of the latest stamp duty and registration charges in Pune. [1]

Isn’t manual calculation time-consuming? Don’t need to worry. Here are the steps to calculate stamp duty online –

• Step 1: Go to the stamp duty calculation page. Select the deed according to your choice, such as “Agreement to sale” and “Gift”.
• Step 2: Choose an option, like, Municipal Corporation or Cantonment. If you have selected Municipal Corporation, choose the area i.e., Municipal Corporation other than Mumbai and Nagpur.
• Step 3: Enter market value and consideration value of property to find out the stamp duty in that region.

Online Procedure

• Step 1: Visit the overnment Receipt Accounting System website. Choose “Inspector General of Registration” and select “Pay Without Registration”.
• Step 2:Click on “Citizen” and select “Make Payment to Register Your Document” in the scroll-down list. Choose “Pay Stamp Duty and Registration Fee Together”.
• Step 3: Fill in the required information like registrar office, district, etc.
• Step 4: Choose the payment option, bank and give the captcha.
• Step 5: If you choose payment across banks, you should pay stamp duty in cheque or cash to the prescribed banks. You will get a challan after the transaction is over. Keep the Government Reference Number with you.  You will also get information like PRN and CIN number of bank and Branch code.

Offline Procedure

You can pay registration charges and stamp duty in the following ways as well -

• Franking
• Stamp paper

You must go through the following points before paying stamp duty in Pune:

• The assets available for stamp duty should be stamped the next working date from the day of execution or before registration procedure. In case of execution of property deed outside the division/territory, 3 months can be taken. Here, execution implies signatures of the parties making the agreement.
• The stamp paper date should not exceed 6 months from the date of transaction.
• A stamp paper should be in the name of the persons involved in the agreement.
• You can pay stamp duty using adhesive stamps. These stamps get removed at the time of execution to avoid reuse.

As per Section 80C of the Income Tax Act, 1961, registration charges and stamp duty are permitted as a part of tax deduction.  The section has allowed a deduction of up to ₹ 1,50,000 for these charges. Moreover, only individuals and Hindu undivided families can get tax benefits.

The tax deduction is applicable under the following conditions -

• A person can claim tax deduction in the year when the expenses are paid.
• A person is a legal owner of the plot and property construction is over.
• Resale property, residential plot and commercial property are not applicable for tax deduction.
• In case of joint ownership, co-owners could claim a deduction on tax returns. The tax deduction depends on their share in a plot. However, a taxpayer possessing partial or complete property ownership cannot avail of this tax exemption.

Whether you are a homebuyer or an estate developer in Pune, you need to check the stamp duty rates and their calculations to avoid last-minute complications.