Stamp Duty & Registration Charges in Punjab | Kotak Mahindra Bank

25 JUNE, 2021

Punjab is one of the most famous states in the northern part of India. Moreover, it is one of the most vibrant places in the country. If you are looking to purchase a property in Punjab, there are some state-specific details that you must be aware of. Along with the property cost, other expenses like registration fee and stamp duty also need to be taken care of. After you have paid the cost of the property to the seller, it is necessary to register your property and pay the stamp duty.  Now, do you know what stamp duty is and why is it important? Scroll down to find out.

What Is Stamp Duty?

Stamp duty is a tax levied by the state government on the transactions involving transfer of properties. It is levied on all properties like under construction or newly completed property, agricultural or non-agricultural land, commercial units, freehold or leasehold land or residential house. Stamp duty payment validates your ownership and legalizes your property documents.

How to Calculate Stamp Duty in Punjab?

Stamp duty in Punjab is calculated on the market value of your property. Officials also use the ready reckoner to determine the value of the property. A ready reckoner is a standard value of a particular property analyzed and managed by the Punjab government. This serves as the limit below which property transactions are not allowed to be conducted. It is essentially the minimum amount of the property notified by the government. To determine the property value for stamp duty, the higher of the two values is considered.

Along with the property value, there are many other factors like location of the property, gender of the owner, usage of the property, type of property etc. that affect the amount of stamp duty applicable on the property.

How to Pay Stamp Duty in Punjab?

To pay the stamp duty in Punjab, you are required to use the e-stamping process.

  • Register yourself on the Stock Holding Corporation of India Limited (SHCIL) website, which is the authorized agency for e-stamping.
  • Select the name of the state-Punjab
  • Fill the application form
  • Submit the application form and pay the stamp duty through online transfer, or at the collection centre.

 

What Are The Stamp Duty Charges In Punjab?

Stamp duty in Punjab is as follows:

 

Home Buyer

Stamp Duty

Man

7%

Woman

5%

Joint ownership

6%

 

If you transfer the property through mutual exchange within the family, the applicable stamp duty is Rs 900 (including pasting fee). Whereas if you transfer the property to a blood relation, no stamp duty is payable.

Property Registration process in Punjab

  • Go to official Punjab government website for property registration [https://revenue.punjab.gov.in/]
  • If you are a new user, register yourself to create an account and then login to the account. Otherwise, login right away.
  • You will get an OTP from the website. Enter it to verify yourself.
  • After logging in, you should follow the instructions on entering the right information into the system. These instructions include giving property details, personal details, document upload.
  • After entering the information, you have to book an appointment to go to the sub-registrar’s office.
  • Before going to the sub-registrar’s office, make sure that you have all the paperwork ready.

At the office, submit the relevant documents and follow the authorities’ guidelines to complete the process.

Frequently Asked Questions (FAQs)

Can you claim a tax deduction on stamp duty?

Yes, you can claim a tax deduction of stamp duty and registration fee under section 80C of the Income Tax Act up to Rs 1.5 lakh.

How can you find the stamp duty of your property in Punjab?

You can use an online stamp duty calculator to find the amount of stamp duty you need to pay for your property.

 

Hence, it is important to know about the stamp duty and registration charges before buying a house in Punjab and applying for 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.