Stamp Duty & Registration Charges in Gujarat | Kotak Mahindra Bank

18 JUNE, 2021

Purchasing a house comes with numerous expenses apart from the actual cost of buying one. Stamp duty and registration fees are among such charges that are mandatory in India. However, based on the location of the purchased property, the amount you need to pay can differ. If you are planning to buy a property in Gujarat, then it is important you are aware of the stamp duty and registration charges applicable on property purchase.  

What Are Stamp Duty and Registration Charges?

Stamp duty is a tax that you need to pay on the purchase of a property anywhere in India. Every State government charges a fixed percentage of stamp duty on the market value of the property. Thus, stamp duty isn’t uniform across the country. On paying this tax, you can legalise your property documents, which can be produced in the Court of Law. At the same time, you also need to pay registration charges to get the house registered to your name. This amount is also decided by the State government and can differ for males and females.

How Is Stamp Duty Calculated in Gujarat?

The stamp duty in Gujarat is calculated based on the market rate of the property you purchase. But many other aspects are also considered while deciding the tax you must pay. Some of these factors are the age and gender of the buyer, type and location of the property, amenities available, usage of the property, etc. Below, you can find the fixed rate of stamp duty and registration charges that the Gujarat State government has set:

 

 

Region

Stamp Duty Charges

Registration Fees

Male Homebuyers

Gujarat

4.90%

1%

Female Homebuyers

No charges applicable

 

How to Pay Stamp Duty in Gujarat?

In Gujarat, you can choose to complete stamp duty payment with the help of a paper-based method, e-stamping, or franking. For the paper-based method, you can purchase stamp papers from an authorised seller and pay the fees. An alternate method for stamping is by visiting a bank or a franking centre to pay the stamp duty via franking. In case you want to complete the payment through e-stamping, several banks, stamp vendors, notaries, etc. facilitate this. Hence, you can easily make stamp duty payment without much hassle.

Property registration process in Gujarat

The Gujarat government allows property owners to register their land or property online. This is done through a website called Garvi. Here is how you can use it to register your property:

  • Log on to the website
  • Select the ‘Model Draft’ option on the main page of the website. Download the right draft and fill it appropriately.
  • Return to the home page and click on the option of ‘Public data entry’.
  • At the new page you reach, read the given information and select the ‘I Agree’ option to proceed. Select the ‘Pre Registration Data Entry’ tab to continue with the process.
  • When you reach the page, complete the prompt of ‘Start registration new data entry’. Once, you have entered all the details required, click on the ‘Submit registration details’ tab to proceed.
  • This means that you registered on the website and can now go for property registration.
  • To register your property, you have to go through filling the right details for multiple pages. These pages include ‘Presentation step 1’, ‘Payment details’, ‘Party details’, ‘Payment status’ and some others.
  • After you have completed the payment, you will receive a challan copy by pressing the ‘Print details’ button.
  • You will get a 13-digit number and you have to save it for future reference. You can take a printed copy of the e-challan for any reference in the future.
  • Then you just have to submit the printout and the 13-digit number along with other documents at the Sub-registrar’s office at the time of your appointment.
  •  

Frequently Asked Questions (FAQs)

 

What are the documents required for stamp duty payment in Gujarat?

Below are the documents that you can keep handy while paying stamp duty and property registration charges in Gujarat:

  • Sale agreement and deed
  • Builder-buyer agreement
  • Original copy of the power of attorney
  • Identity proofs such as PAN Card, passport, driver’s license, etc. of both buyer and seller
  • Khata certificate
  • Proof of payment made to the seller

 

Are there any tax benefits that you can claim for stamp duty and property registration charges in Gujarat?

Yes, you can avail tax benefits under Section 80C of the Income Tax Act on stamp duty and registration fees paid in Gujarat.

What would happen if you do not make stamp duty payment?

By failing to pay stamp duty or showing your real estate at an undervalued rate, you could be penalised with a hefty fine.

Therefore, knowing everything about the stamp duty and registration charges will help you plan better before buying a house in Gujarat and financing your needs with a home loan.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.