The Stamp Duty Telangana: Registration Charges, Tax Benefits

The stamp duty in Telangana is the tax that is imposed by the state government. This tax is applicable on the purchase of real estate property. It is the state government that is in charge of setting up the rules and regulations and different norms. They also need to take a look at the collection process as well. The stamp duty is expressed as a percentage and this is a part of the total transaction value.

This is one of the important fees and you must pay it whenever you are looking to transfer a property and using legal documents to do so. The stamp duty acts as a befitting proof of payment and comes in handy for the different property disputes under the Indian Stamps Act, 1899

Right now, the Telangana government charges a 6% stamp duty on the land value and this is inclusive of the registration and transfer charges as well.

However, the rates may rise as the state government got a proposal from the Telangana Stamps and Registration Department along with the cabinet panel.

The Documentation

When you are looking to pay the stamp duty charges or register your property document, here are the key documents you need to present at the sub-office of the registrar.

The Encumbrance Certificate
ID proof of the seller and buyer along with 2 witnesses
Power of attorney (if needed)
Original property documents
Section 32A photo form of witnesses and executants
Bank challan for land registration fee payment
Demand draft
Pattadar passbook for agricultural land

What Happens If You Don’t Pay Stamp Duty?

If you don’t pay the stamp duty, the transaction will not be considered legally valid. You will not be able to prove the ownership in a court of law as that sale or transfer of ownership will not be legally upheld.

stamp-duty-in-Telangana — Source: Andrii Yalanskyi / Shutterstock

This is why it is really important to make sure that you are paying the stamp duty charges whenever you are making a property transaction. It is important by the books of law for you to make sure that the transaction will be considered true.

How To Get A Refund On The Stamp Duty Charges In Telangana?

There are a few cases wherein you are eligible to get the right refund on the stamp duty charges. Here we are going to tell you exactly when and the cases where you can apply for the refund.

Any non-judicial stamp papers that are left unused and the ones that have become spoiled but have not been used can be returned and you can ask for a refund against that
The non-judicial stamp papers on the other hand are only accessible for up to Rs. 100 and you will need to use the challan system for the sake of getting the refunds.

So, make sure that you are checking the details and following the right steps for the sake of getting your refund appropriately.

Do You Get Any Tax Benefits On The Stamp Duty And Registration Charges?

As per section 80C, you can claim a tax benefit as the stamp duty in the state does come with tax advantages. However, the maximum amount of deduction that you can get is Rs. 1,50,000. So, make sure to keep this amount in mind when you are applying for tax refunds. If possible, it is always advisable to opt for this refund.

The Registration For Non-Agricultural Property

The Telangana government has an official website. You need to visit that and book an online slot for registering the non-agricultural property. You will have to choose a certain date and a time along with it.
Alternately, if you don’t want to do the work online, you can also choose to head to the Meeseva centres and have the registration done for Rs. 200
It is important to note that only 24 slots are available per day at the sub-registrar’s office. However, they are entitled to receive 100 slots.
After a slot has been booked and the payment has been made by depositing the challan, you will be notified about the location of the sub-registrar’s offices via an SMS.

With the right steps, you will be able to book a slot and thereby get the registration work done.

How To Upload New Properties For Builders?

If you deal in real estate and you want to upload several new properties at once, you have a separate dedicated window for it. As many as 451 builders and developers have added information to the site. They have added as many as 93,874 properties.

So, you can head to the site and find a separate window for the sake of uploading the properties. Make sure to add the right deals and you will be all set. It is always advised to upload the details of the properties as this will help the portal stay up to date at all times.

What Is The Dharani Portal?

The Dharani portal is the one-stop place where you can carry out the land transfer, the different registration work and even update the land details as well. However, this project ended up falling into several issues owing to data collection.

It was at that time that the Telangana government ordered the Stamps and Registration Department that they were not to gather information on either land buyers or sellers. Ideally, it was planned that the Dharana portal will have a separate sub-portal for registering the non-agricultural land. However, owing to the legal battle that ensued, the merger was postponed and nothing concrete has happened so far.

The Stamp Duty Rate Calculator For Telangana

Whenever you want to buy or sell a property, it is always advised to be mindful of the net stamp duty and the registration charges that will be incurred. Here we are going to stare details on how you can calculate the registration charges in Telangana.

All the different individual states will determine their stamp duty rate and this is always going to be a percentage of the net value of the property.

Based on the type of property it is, whether it is residential or commercial or even the location if it is a rural or urban property, the rates are going to differ. Make sure to check the details of the rates applicable in your state and then decide accordingly.

There are different options available for the sake of paying the stamp duty charges and these include non-judicial stamp paper, franking charges and the process of e-stamping as well.

After you are done with the payment, the document goes through the Telangana house registration charge process. Here the stamp duty is paid.

The Telangana house registration charges are calculated as individual state registration per cent of the ready reckoner rate or the actual transaction value. Always note that whichever rate is higher is always considered when making such calculations.

The whole system of registration charges in Telangana has gone through several changes and amendments. However, ever since the IGRS portal was launched, the whole process became extremely easy.

Stamp Duty And Registration Charges Details In Percentage

Here are the consolidated details for the stamp duty charges for the state of Telangana.

Stamp duty charges stand at 4% of the value of the property
The registration charge is 0.5% of the value of the property
The transfer duty is valued at 1.5% of the value of the property
The stamp and transfer duty are payable on consideration or market value, whichever among the two is higher.

So, you should always make it a point to duly check out the detail of the stamp duty registration charges that are present in a state and at that point in time. They are always subject to changes based on what the state government decides.

Making the right calculation helps you in sound real estate buying and selling decisions.

Stamp Duty Charges On Power Of Attorney And Will

Let us give you the details of the different case scenarios and the exact stamp duty charges that are applicable in such situations.

Case Condition I

When there is a document which is a general power of attorney wherein a family member is given the right to sell, transfer or even develop real estate on a piece of land.

The stamp duty in such cases is Rs. 1000.
Transfer duty applicable is nil
The registration fee is 0.5% with a minimum cap of Rs. 1000 and a maximum cap of Rs. 20000

Case Condition II

When there is a document which is a general power of attorney wherein an agent or any other person is given the right to sell, transfer or even develop real estate on a piece of land.

The stamp duty in such cases is 1%
Transfer duty applicable is nil
The registration fee is 0.5% with a minimum cap of Rs. 1000 and a maximum cap of Rs. 20000

Case Condition III

When there is a document which is a general power of attorney that apart from authorizing an agent or others to sell, transfer or even develop real estate on a piece of land, does other things too.

The stamp duty in such cases is Rs. 50.
Transfer duty applicable is nil
The registration fee is Rs. 1000

Case Condition IV

When there is a document which is a special general power of attorney

The stamp duty in such cases is Rs. 20.
Transfer duty applicable is nil
The registration fee is Rs. 1000 for attestation

Case V

When the document being spoken about is a will

The stamp duty in such cases is nil
The transfer duty too is nil
The registration fee is Rs. 1000

Registration Charges For Gift Deed

If you are giving a gift to someone, you need to make a gift deed. Here are the charges for the registration of a gift deed.

Case I

A gift is given to relatives

The stamp duty charges are 1%
The transfer charges are 0.5%
The registration fee is 0.5% with a minimum cap of Rs. 1000 and a maximum cap of Rs. 20000

Case II

When you give a gift to someone who is not a relative

The stamp duty charges are 4%
The transfer charges are 1.5%
The registration fee is 0.5% with a minimum cap of Rs. 1000 and a maximum cap of Rs. 20000

FAQ

Is the stamp duty rate different for every state?

Yes, every state has the power to decide the stamp duty charges that they are going to levy. So, whenever you buy a new property, make sure to check the current stamp duty rate in your state. For example, the stamp duty rate in Maharashtra will be different from the stamp duty in Telangana. Currently, Telangana hiked the stamp duty rates by 1.5% upon orders by the Telangana administration.

Does the stamp duty Telangana depend on several factors?

Yes, the stamp duty depends on a lot of different factors. It is important to be mindful of the details and then assess how much stamp duty you will be paying.

Is there a difference in the stamp duty Telangana charges based on the type of property?

Yes, based on the type of property you have, whether it is commercial or residential and even local or urban; the rates for the stamp duty are going to vary considerably.

What are the registration charges for a lease deed?

The registration charges for a lease deed in Telangana is 0.1%

Can you pay the stamp duty online?

Yes, you can easily pay the stamp duty online as there is a dedicated portal that allows you to do so.