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Decoding Pune's Stamp Duty: A Comprehensive Guide to Property Transactions

Author
Blox Social
Posted on
Nov 29, 2023
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Planning your home buying budget

Purchasing a property is a critical decision that can significantly impact your finances for years to come. Therefore, it is crucial to finalise the purchase by creating a proper sale deed and registering it at the sub-registrar's office. The transfer of ownership is deemed legal only when the property's sale deed has been registered and the registration charges and stamp duty have been paid. It is, therefore, important to budget for the stamp duty and registration charges when you buy real estate.

Most home loans or housing finance products do not cover the stamp duty charges, and you will need to provision for this expense through your income or savings. The state government declares the stamp duty rates for the following fiscal year on 31 January each year.

Why is it necessary to pay stamp duty?

Stamp duty came to be imposed on transactions, gifts, and conveyance agreement deeds in the late 19th century. The Maharashtra Stamp Act of 1958 consolidated the previous laws and clarified the rates and penalty clauses. The rates are amended each year. Paying the stamp duty helps raise funds for the state government mechanism to maintain records of property sales and transfer of ownership.

Stamp duty and registration charges in Pune

To register a sale agreement, you need to visit the sub-registrar's office. Once there, you must collect a registration form and fill in all the required details, such as the property, buyer, and seller information. You will then need to submit the form and all the necessary supporting documents for verification. Once the form is verified, you will need to pay the registration charges and stamp duty online. After this, you will need to visit the sub-registrar's office again with the challan for the execution of the deed. Within a month, you will receive the property registration number.

Here are the stamp duty and registration charges in Pune effective from 1 April 2022 –

  • Stamp Duty when the buyer is a man - 7% of the property value (including metro cess, local body tax, and transport surcharge)
  • Stamp Duty when the buyer is a woman - 6% of the property value (including metro cess, local body tax, and transport surcharge)
  • Registration charges - INR 30,000 if the property value is above INR 30 lakh; 1% of property value for properties below INR 30 lakh

It is important to note that the property value refers to the ready reckoner rate (fixed by the government) or the transaction value, whichever is higher.

Online payment of registration charges and stamp duty 

Here is how you can pay your property registration fee and stamp duty online.

  • Log on to the Government Receipt Accounting System portal through this link.
  • Click the "Create User Account" link on the left-hand panel and register yourself by filling in your personal information and the property details.
  • Once you have the new login details, use the Registered User Login panel and enter the Captcha to log in.
  • Choose the "Citizen" option and select the "Make Payment to Register Your Document" link. Here, you will find the option to pay the registration fee, stamp duty, or both.
  • When you select the appropriate option, you will find a form that prompts you to select the district (Pune - City or Rural) and sub-registrar's office. Now select the appropriate article (e.g. 25.2 - Agreement to Sale/Transfer)
  • Here, you fill in your (buyer's) and the seller's information and property details, such as address and property value.
  • Now, you can select the payment mode and make the payment through net banking, credit or debit card, and e-wallet.
  • Download and save the e-challan.

Conclusion

Buying a home is a joyous experience. It is also a major financial asset that you invest in. Learn more about the registration and stamp duty payment processes to secure your investment.

Finance & Legal