Owning a house is one of the proudest moments in everyone’s life. India has seen a tremendous rise in house-owners, with urban cities such as Mumbai, Delhi NCR, Pune, Bangalore, Hyderabad, etc., seeing the most activity. Despite the pandemic-stuck years, the real estate market in India continued its boom-run. Major cities in Maharashtra, such as Pune, saw a surge of property buyers thanks to the Maharashtra Government lowering stamp duty and registration charges in Pune.
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The Government of Maharashtra’s buyer-friendly policies and the decision to slash the stamp duty registration charges in Pune triggered a positive reaction from Banks and Home Loan providers that have cut the property loan rates to 7-7.5%. However, if you are thinking about buying a home in Pune, you will soon have to pay taxes such as stamp duty, registration charges and if you didn’t know how the stamp duty and registration charges in Pune 2021-22 calculator works.
This blog covers everything from the latest stamp duty and registration charges in Pune to the reasons why you have to pay these taxes on top of the property valuation money. (Note – The rates for stamp rates comes out annually on the 31st January of each year).
Understanding Stamp Duty
When buying a house by paying upfront, or via a home loan, we tend to forget the money needed to pay stamp duty registration charges in Pune. But these extra costs are significant and should be considered when planning the finances for the house.
What is Stamp Duty?
The stamp duty came into effect after the Stamp Duty act in 1899 was passed. A tax levied on the instrument before any type of transaction between at least two parties must be documented concerning property (tangible/intangible, movable/immovable). The primary purpose of the Stamp Duty is to raise money for the Government, and thus the stamp duty in Pune has to be paid in full and before the deadline. The stamp duty is necessary for sale deeds, conveyance deeds, transfer of power of attorney, etc.
For example, when selling a used flat, the stamp duty on resale flat in Pune is to be paid by the buyer to make the transaction official and legally binding. Thus, the stamp duty is essential because the document facilitates the creation, transfer, and closure of any other aspect regarding property ownership. The stamp duty charges in Pune can be paid either based on the specifics mentioned in the instrument or on a fixed basis. If the property is immovable, then the stamp duty must be paid after determining the property’s actual value.
Factors that Will Determine Stamp Duty and Registration Charges in Pune 2022-23
The state government of Maharashtra imposes registration and stamp duty charges in Pune for all freehold and leasehold land, including agricultural land. These charges also apply to properties such as homes, residential flats and commercial spaces. However, since there are different types of properties, the actual amount of the stamp duty and registration charges Pune depends on certain factors such as:
1. Property Type: The tax paid on commercial properties is comparatively more than the fees paid on residential homes.
Read: All You Need to Know about Revenue Stamps
2. Property Location: The property location also plays a crucial role in the tax charges. Properties in Rural and semi-urban areas have to pay less than the stamp duty and registration charges in Pune.
3. Market Value: The total area and the property’s market value are also factors that are considered when calculating the current stamp duty and registration charges in Pune.
4. Age & Gender of the Owner: Government often gives extra concessions depending on the age and gender of the owner. Stamp duty and registration charges can be subsidised for senior citizens and women.
What are the Current Stamp Duty and Registration Charges in Pune?
During the pandemic-hit year of 2020, the Maharashtra Government cut the stamp duty changes from 5% to just 2% if the property was bought between September 1st 2020, and December 31st 2020. However, after that, the government increased the changes to 3% on properties bought between January 1st 2021, to March 31st 2021.
The current Stamp Duty in Pune 2021-22 is 6% of the market value of the property and is broken down as follows:
- The stamp duty is 4%
- Local Body Tax (LBT) is 1%
- Transport Surcharge is 1%
During the financial budget announcement, the Maharashtra Government announced that they would offer a 1% concession on stamp duty rates in Pune if the property is in a woman’s name. Hence, they will have to pay 5% instead of the standard 6% tax.
Registration Charges for Flat in Pune
The registration charges that property buyers in Pune have to pay, depend on the home’s actual market value. Suppose the property is valued below Rs. 30 lakhs, then the registration charges to be paid are 1% of the total property value. On the other hand, if the property value exceeds Rs. 30 lakhs, then the registration charges are capped at flat Rs. 30,000.
Stamp Duty Charges in Pune – Mode of Payments
You can choose to pay the stamp duty changes in the following method that suits you best. There are four modes of payment that are authorised by the governing body.
1. Non-judicial Stamp Paper – This is the least popular mode of payment. It takes more time and is full of hassles (especially during the pandemic). But if this is the chosen method, the buyer has to get physical stamp paper from a licensed vendor and get the executed instrument printed on the stamp paper. This can be a viable option for stamp duty on resale flats in Pune, but it may not be a viable option where the stamp duty is of a larger denomination.
Read: All About Maharashtra Cooperative Societies Act – From Its Existence (1960) to Its Latest Amends
2. Franking a document – This mode of payment depends on the applicant applying with an authorised franking agency or a bank to pay the stamp duty (along with the stamp). However, the maximum stamp duty is capped at Rs. 5000 / document.
3. Electronic Secured Bank Treasury Receipt (e-SBTR) – To make the payment of stamp duty in Pune easier for the buyer, the Government introduced an online payment gateway – Electronic Secured Bank Treasury Receipt (e-SBTR). The applicant must fill the “input form” at the bank branch office that proves the e-SBTR facility and pay the required stamp duty amount. Once the payment is successfully made, the authorities register the details in the Government Visual Treasury to create a pre-printed e-SBTR that serves as proof of payment. However, it is necessary to note that the applicant must physically collect the e-SBTR from the respective bank branch office.
4. Government Receipt Accounting System (GRAS) – If the applicant prefers to do the entire process online, then the government has an electronic payment system GRAS that enables the buyer to pay stamp duty in Pune via an e-challan that is accepted at the sub-registrar’s offices. However, there is a limitation that this can be done only for compulsory registrable documents (as under Section 17 of the Registration Act, 1908). GRAS is the most preferred payment mode for buyers who have availed of a home loan on the property.
Read: RERA Maharashtra Demystified: Know Your Rights as a Homebuyer
Pune Stamp Duty Charges for Women
Prior to the state of Maharashtra announcing a one percentage point concession for the fairer sex on March 8, 2021, rates in Maharashtra were equal for men and women, in contrast to other states where the stamp duty is lower for women. The women can now register property in their names by paying a 2 percent stamp tax.
Steps for Online Payment of Stamp Duty and Registration Charges for Flats in Pune
Step 1 – Visit https://gras.mahakosh.gov.in/echallan/ (Maharashtra Stamp Duty Online Payment Portal).
Step 2 – Register on the portal if you wish to. (recommended)
Step 3 – If you choose to pay without registering, then click on “Pay without Registration” and then “select citizen” and the type of transaction that you want to do on the new page.
Step 4 – You will see the option to “Pay to register your document”, where you choose to pay just the stamp duty or just the registration or stamp duty + registration fees.
Step 5 – Now, you will need to enter the correct details such as District, Sub-Registrar office, Party details, Property details and Property value details.
Step 6 – This is the last step, and the only thing left to do now is select the desired payment mode and generate the challan.
Ready Reckoner Rates in Pune
The government-set amount below which a property cannot be sold in a particular location is called the ready reckoner rate (RR), sometimes known as the circular rate, and it is used throughout Maharashtra. The stamp duty calculation will still be based on the RR rates if the seller has set the price of the property lower than the government-fixed ready rates.
The buyer can determine the property’s valuation and subsequent stamp duty by multiplying the circle rate by the area of the property.
To illustrate-
Let’s say Dev decides to purchase a house with 500 square metres of carpet. The property circle rate per square metre is Rs 42,760. In this instance, the property’s total worth will be as follows:
500 x 42,760 = Rs 21,380,000 which is Carpet area x rate per square metre
Given that the Pune stamp duty is 5% of the value of the property, Dev will be required to pay Rs 10,69,000 in stamp duty. Dev will pay an additional Rs 30,000 as the registration fee because the property is valued at more than Rs 30 lakhs.
Checklist for Document Registration and Property Registration Charges in Pune
Following documents are needed to ensure that the registration of the documents is done without any hurdles.
- Identity proof documents such as Pan Card, Passport, Driving License, etc. (of the seller as well as the purchaser)
- The original deed document, along with two photocopies that are submitted to the Sub-Registrar of Assurances.
- The proof of payment (challan) of the Stamp Duty.
- Payment details of the transaction
- The Khata certificate and receipt of taxes paid
Points to Consider Before Paying Stamp Duty in Pune
When it comes to paying stamp duty in Pune, it’s important to be well informed about the process and the factors that can affect the stamp duty rate. To ensure a smooth transaction, here are some key points to consider before paying stamp duty in Pune:
- Verify the property documents: Before paying stamp duty, make sure that the property documents are in order and that there are no legal disputes related to the property.
- Check the stamp duty rate in Pune: The stamp duty rate in Pune is set by the Maharashtra government and can vary based on factors such as the type of property, the purpose of the transaction, and the buyer’s age.
- Calculate the total cost: In addition to stamp duty, there are also registration charges that must be paid. Calculate the total cost of stamp duty and registration charges to ensure that you have enough funds to complete the transaction.
What Are the Factors That Affect Stamp Duty in Pune?
The amount of stamp duty you’ll need to pay in Pune is affected by a variety of factors. Understanding these factors can help you estimate the total cost of the transaction and make informed decisions when purchasing a property. Some of the factors that can affect stamp duty in Pune include:
- Type of property: Whether you’re buying a residential or commercial property can affect the stamp duty rate.
- Purpose of the transaction: The stamp duty rate can also vary based on whether the property is being purchased for personal use, investment, or commercial purposes.
- Buyer’s age: The stamp duty for senior citizens may be lower than for other buyers.
- Location of the property: The location of the property can also affect the stamp duty rate in Pune.
Are Tax Benefits Available on Stamp Duty and Registration Charges?
While stamp duty and registration charges can be substantial, there are tax benefits available to help offset the costs. It’s important to understand these benefits and how they can help you save money. Here are some of the tax benefits that may be available in Pune:
- Tax deductions under Section 80C of the Income Tax Act: You may be eligible to claim a tax deduction for the amount paid towards stamp duty and registration charges, up to a limit of INR 1.5 lakhs per financial year.
- Tax benefits for first-time home buyers: If you’re a first-time home buyer, you may be eligible for additional tax benefits, such as a tax deduction for the interest paid on a home loan.
Understanding the exact stamp duty and registration charges in Pune for your home can be tricky if you have not done the process before. This is why NoBroker offers professional and expert help to home buyers who wish to take help from people who have plenty of experience in paying stamp duty and registration charges. Our experts help you understand the entire process and help you until the registration is done successfully. If you wish to consult our expert, just drop a comment below this article, and our team will reach out soon.
FAQ’s
Ans. According to the Government’s latest notification, the stamp duty to be paid on homes is 6% in total. 4 percent of which is stamp duty, 1 percent each is due to Local Body Tax (LBT) and Transport surcharge.
Ans. Yes, the Maharashtra Government announced in March 2021 that if the home is under a woman’s name, they will receive a 1 per cent subsidy in the stamp duty changes. The dates for 2023 will be announced on the 31st of January 2023.
Q3. What are the home registration charges in Pune?
Ans. The registration changes to be paid on the home depend on the total value of the property. If the property value is below Rs. 30 lakhs, then the amount paid is 1% of the total value. On the other hand, if the property value exceeds Rs. 30 lakhs, then the amount is capped at Rs. 30,000.
Ans. Yes, it is possible to pay the charges online by using the Government’s electronic payment portal.