If you plan to buy land in India, you must consider the cost of registering your property besides the price of the property itself. Depending on the state and type of purchase, property registration fees and stamp duty charges can amount to 7% to 10% of the total property cost.
Registration fees in most Indian cities and towns are 1% of the property value. Aside from these fees, you will pay a cess and a small surcharge.
Different Cities’ Land Registration Fees/Charges
|Name of the City||Registration Fees|
|Delhi||4% if the owner is a woman|
6% if the owner is a man.
|Mumbai||1% or Rs. 30,000|
|Kolkata||1% if the value of the property exceeds Rs. 40 lakhs.|
What is Land Registration?
When you register a property in your name, the state government will charge you a registration fee, which is a percentage of the total or filed value of the property. The Registration Act of 1908 imposes a fee for registering your property documents in your name. This fee applies to both new and existing property registrations.
Property registration fees vary by state. It also depends on who will register the property. Women and senior citizens receive a registration fee reduction from the state government.
Factors Influencing Property Registration and Land Charges
- Property, new or used: The property registration fees vary by the type of property you want to register. A high registration fee is usually required to enter a new property. It makes sense because the registration fee is a percentage of the total cost of the property. A new piece of land typically has a higher total property cost than an old piece of land. It usually has a higher total property cost than a piece of older land. When you register a not-so-new or old property, the registration fees will be low because the home’s value has decreased since it occurred.
- Commercial and Residential Property: The fees for registering a commercial property are higher than those for registering a residential property. It is primarily because commercial real estate, unlike residential properties, requires additional amenities such as swimming pools, escalators, and exclusive parking.
- Geographical Factors: The property’s location has an essential impact on the registration fees. If your property is in a city or a developed town, you must pay a high registration fee. You should also consider the state where you’re buying the property because state governments charge property registration fees.
- Transfer Type: If you are buying a property from someone other than a family member, you must pay the standard registration fee. However, if you transfer the property’s title to a family member as a “Gift Deed,” the registration fees are low.
- Amenities: As previously stated, if you have amenities such as a clubhouse, community hall, library, outdoor play area, swimming pool, cargo lift, or gym, you must pay a high registration fee. The amenities-valuation method requires you to pay more for each additional amenity in your building.
- Airport, bus, or train station proximity: Did you know that if you live near an airport, bus station, or railway station, you will face a high registration fee? Yes, that’s correct!
- Property ownership gender: The government waives registration fees for women’s properties. So, if you have a female member, you can register the property in her name to save money on registration fees.
Property registration requires the submission of the following documents:
- Certificate of encumbrance valid until today.
- The electricity bill
- Registered Development Agreement (if it relates to Joint Development property)
- Power of attorney, if any
- A copy of all previously recorded contracts (if real estate is under offer)
- ‘RTC’ stands for Records of Rights and Tenancy Corps.
- The landowner’s title records and a sale deed in the seller’s name
- Tax returns from the previous three months, as well as the most recent bank statements, if money remains due from a loan.
How are land registration fees calculated?
Property registration fees depend on the current market value of your home. If you have both the market value and the agreed-upon value of the property, the greater one will be the charge.
- Aside from the cost or value of the property, the type of property, location of the property, gender and age of the owner, usage of the property, and a number of floors all influence the property registration fee.
- Stamp duty officials usually use the Stamp Duty Ready Reckoner to determine the property’s worth. The Stamp Duty Reckoner is published annually on January 1st by the relevant state government.
Calculator for Property/ Flat Registration Fees
Use an online property registration fee calculator to determine how much you must pay out of pocket before registering your property. Many online calculators can calculate the registration fee in a matter of seconds. All you have to do is:
- Enter basic information about the property, such as its location and cost, and then click the “Calculate” button. The charges will appear on the monitor in no time. You do not have to go to the local register office to find out. Thanks to technology!