Stamp duty & property registration charges in Telangana

Stamp Duty & Registration Charges in Telangana

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Admin 24 Apr 2024 3,349 Views

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Stamp duty is a tax levied on a property when the ownership of that specific property is transferred. This is a significant revenue source for the Government, and the amount of stamp duty is spent on various welfare schemes in the state and country.

Every state has a distinct stamp duty Act, and according to the state Stamp Duty Act, the stamp duty is levied on different properties in every state. We will discuss here the stamp duty and registration charges in Telangana.

Current financial year stamp duty for Telangana

Stamp duty in Telangana is collected under certain circumstances. Under the Indian Stamp (Telangana Amendment) Act 2021, every citizen of Telangana is compelled to pay stamp duty to the Government on purchasing their property. The population of Telangana pays the stamp duty to the Government when they

● Purchase any property in the area of Telangana state

● Sell any movable property

● Make a partition of their property

● Gift and settlement

● Transfer power of attorney

Registration charges in Telangana include stamp duty, transfer duty, and nominal user charges. Registration charges are also different in Telangana, like stamp duty. The stamp duty and registration charges in Telangana are shown in the table below:

Stamp Duty and Registration Charges in Telangana 2022

Purpose of Charges	Amount
Stamp Duty charges	4% of the total property value
Registration charges	0.5% of the total property value
Transfer Duty Charges	1.5% of the total property

Stamp Duty on Different types of Deed

The stamp duty and registration charges are levied differently on different properties. The land registration charges in Telangana are 0.5% of the entire property, while the plot registration charges in Telangana are determined differently. Movable and immovable properties have different stamp duties.

Regarding gift deed registration charges in Telangana, the registration charge is determined based on the close or distant relatives to whom the gift is transferred. Let's check out the below list:

Stamp Duty on Immovable Properties

Sale Agreement	Payable Stamp Duty	Payable Registration Charges
Immovable property sales in the specific areas of corporations, municipalities	4%	0.5%
Sale of immovable property in any other area	4%	0.5%
Apartments, flats, in all areas	4%	0.5%
Agreement with the possession of property	4%	0.5%
Agreement with Grade Point Average (GPA)	5%	₹ 2000
Agreement without possession of property	0.5%	0.5%

Stamp Duty for Partition of Property, Gift, and Settlement

Partition Type	Payable Stamp Duty	Payable Registration Charges
Partition of property among all the members of a family	0.5% on VSS	₹1000
Partition of property among other relatives	1% on VSS	₹1000
Settlement among all the members of a family	1%	0.5%
Settlement among other relatives	2%	0.5%
Gifts for relatives	1%	0.5%
Gifts for non-relatives	4%	0.5%
Settlement for charitable	1%	0.5%

How can we calculate stamp duty for different types of properties?

The stamp duty for different properties is calculated based on the total property value and the stamp duty levied on that specific property. Let's look at the example:

Suppose the cost of a specific property is: 1,00,000

The stamp duty of the property is: 4%

So, the total amount of stamp duty will be: 4% of 1,00,000 = Rs. 4000

Now, the registration charge of the property is: 0.5%

So, the registration charge of that property will be: 0.5% of 1,00,000 = ₹5000

Any Tax benefits on stamp duty from the Government

Yes, as a property owner, you can claim tax benefits from the Government of Telangana to pay your stamp duty. Under section 80C, one can get the privilege of stamp duty reducing up to Rs. 1,50,000.

How can we stamp duty online?

You can select offline or online to pay your stamp duty in Telangana. The process of online stamp duty payment is:

● Step 1: Visit the official Stamp Duty and Registration website in Telangana

● Step 2: Register yourself on the website

● Step 3: Log in to the website, and upload the required details for tax payment

● Step 4: Select your payment system

● Step 5: Pay the stamp duty and registration charges online

How much time do we have to pay stamp duty, and what are the penalties we have to pay in case of delay?

Like other taxes, stamp duty is a significant payable tax that must be paid on time, i.e., within around 30 days. A penalty of 2 percent to 200 percent of the total stamp duty amount will be assessed if you pay your stamp duty late.

What is the document required to pay Stamp Duty?

Some specific documents are required when you intend to pay your stamp duty. If one of your documents is invalid, you will not be allowed to pay your stamp duty. Following are the required documents for stamp duty and registration charges paid for every individual in Telangana.

● Encumbrance Certificate of the property owner

● Original property documents of the property owner

● Letter of demand

● Bank challan for payment of land registration charges in Telangana

● Identify proof, such as Pan card, Aadhar card, passport, driving license, etc. of the seller, buyer, and other two witnesses

● Section 32A photo form of both executants and witnesses

● Pattadar passbook is necessary in case of agricultural land registration

● Power of Attorney if necessary

What happens when you have not paid stamp duty?

When you have not paid your stamp duty in Telangana, your property transaction will be considered illegal, and the law will not accept your property transaction documents as proof. As a result, your property will become disputed property. Also, for failure to pay the stamp duty, you will be subject to a legal penalty, and the penalty can be more or less depending on your property.

Any tax evasion is a crime, so as a responsible citizen, you should also pay your stamp duty and other taxes.

About Author

Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

Stamp Duty & Registration Charges in Telangana