09 DECEMBER, 2022

Hyderabad is an IT hub and a leading real estate market in India, showing considerable growth while outpacing other metro cities. While the rest of the country is showing a growth of 15%, Hyderabad is displaying a staggering growth rate of 32%.

The housing market segment is the pioneer driver of the wheel of growth in Hyderabad amongst the real estate industry. It has recently been awarded the World Green City Award. Hyderabad is the second most expensive housing market after Mumbai in the metropolitan region.

Although Hyderabad has recorded the highest price upsurge in the average price per square foot of 9% during the last quarter of 2021, there has been a 36% increase in home sales numbers in 2021 as compared to 2022.

Those thinking of buying a house in Hyderabad have to pay Stamp Duty and Registration charges in addition to purchasing the property. This article provides you with complete details of the registration charges in Hyderabad. Also, it explains the calculation of Stamp Duty and Registration Charges. Read on to learn more!

What Are Stamp Duty and Registration Charges?

Stamp Duty is a type of tax that the government levies on the registration of the documents required to legally record a transaction. For instance, the transfer of real estate property or other assets. Stamp Duty varies from State to State as the State Government decides it.

Registration Charges are paid for registering the property with local authorities under Section 17 of the Registration Act, 1908. It is a legal compulsion for the buyers to register their property in the Sub-Registrar Office and pay the Registration Charges. This charge is about 1-1.5% of the deal value.

How Are Stamp Duty and Registration Charges Calculated?

The State Government decides Stamp Duty and Registration Charges and it varies from state to state. These charges are levied based on the registered value of the property, the higher Circle Rate Value or the consideration paid for the property.

The competent authority prescribes Circle Rate for your locality. The Circle Rate is multiplied by the property's built-up area to get the Pproperty's Circle Rate Value. This circle rate represents the property's market value.

Stamp Duty and Registration Charges in Hyderabad

Hyderabad is amongst one of the states levying high stamp duty on purchasing properties. These rates have been revised recently.

Area

Stamp duty

Registration charge

Corporations, special grade municipalities

5.5%

0.5%

Gram Panchayat

5.5%

2.00%

Sale Agreement (along with possession)

5.5%

0.5%

Sale Agreement (without possession)

0.5%

0.5%

Agreement of Sale cum GPA

0.5%

5.5%(Adjustable)

Conveyance

0.5%

5%

Certificate of Sale

0.5%

5%

 

For more details on the Stamp Duty in Hyderabad, refer link -> (Hyderabad.gov.in)

All the above charges are calculated on Registered Property Value. It is the higher consideration value or the circle rate of the property. Please note that unlike other states such as Maharashtra, Rajasthan, Haryana, Uttarakhand, and Delhi, Hyderabad does not provide any particular concession for registering property in the name of a female family member. Hyderabad's stamp duty and registration fees are equal for both men and women.

Calculation of Stamp and Registration Fees in Hyderabad

Suppose Mrs P buys a flat from Mr Q in Hyderabad on November 1, 2022, measuring 1000 sq. ft. for 20 lakhs. The circle rate per sq. ft. is 2100.

Thus the Circle Rate Value = 2100*1000 = Rs. 21,00,000

Consideration Paid = 20,00,000

Higher of the above two = 21,00,000

Stamp Duty = 5.5%*21,00,000 = 1,15,500

Registration Charges = 0.5%*21,00,000 = 10,500

Total Stamp Duty and Registration Charges = 1,15,500 + 10,500 = 1,26,000.

Thus, the total cost of the flat would be 20,00,000 + 1,26,000 = 21,26,000.

Also, please note that although a female family member purchased the property, the rates were not different as the property is situated in Hyderabad.

Required Documents

The following documents are required to be submitted at the Sub-Registrar Office for Registration of the property.

  • Proof of payment of all the duties and charges such as registration fees, stamp duty, and transfer duty (if any).
  • Challan/DD could be submitted as proof of payment.
  • Section 32A form of witnesses/claimants/executants.
  • At least two witnesses are required to identify the parties.
  • Passport-size photos of the witnesses
  • Executants and witnesses’ Address proof (Aadhar card/Passport/Pan Card/Ration Card/Voter Id/Pan Card)
  • A photograph of the property (Front view)
  • Power of Attorney, if any, in original and its photostate copy.
  • All the link documents copies.
  • All the original documents need to be signed by all the respective parties.

How to Avoid Common Stamp Duty Mistakes in Hyderabad?

When preparing to pay your stamp duty in Hyderabad, it's essential to bear in mind the following.

  1. All real estate transactions must be notarised on the same day or the next business day. In case the property is located outside the region, the deed should be stamped within three months. The performance of this agreement requires the signatures of both parties.
  2. The stamp's issuance date should not be more than six months after the stamp date for valid transactions.
  3. People's names need to be there on the stamp paper if they're part of the deal.
  4. Stick-on stamps are accepted for payment of stamp duty in Hyderabad. These stamps are removed before the completion of the process begins so they can't be used again.

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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.