What are the Flat Registration Charges in Pune?

If you are planning to buy your dream home in Pune, it is better to know flat registration charges in Pune, stamp duties etc., beforehand. Let us guide you through.

The flat registration charges in Pune are constantly changing and serve as one of Maharashtra's government's most significant revenue sources. The whole concept of property registration and stamp duty is to curb difficulties in the process.

Stamp duty is a tax that each state's government imposes on all permitted property transactions. Stamp paper, which must get purchased in either the name of the seller or the buyer, is valid for 6 months if the stamp duty gets paid on time. Simply put, any type of property document is only legal when the person pays its stamp duty.

The ready reckoner rate is meant to be the minimum rate notified by the government through the Registrar/Sub-Registrar Office in Pune for the registration of property transactions.

The registration fee is an additional tax on stamp duty, and the state government determines it to cover the cost of registration offices.

What is stamp duty?

Stamp duty and registration fees are two additional costs a buyer in Pune has to bear while buying a property. The buyer must pay these fees to the government at the time of registration, and it is mandatory to pay these fees under the Registration Act of 1908.

Remember that stamp duty is a percentage of the property's value buyers must pay for registration. Fixed by the state government, the Pune stamp duty is periodically revised to increase or decrease the demand. In a slow-moving market, rates get lowered to increase demand.

The home buying process is incomplete until it gets documented and registered in the buyer's name. Property registration is essential because it protects the owner's interests and "title" in case of conflict and fraud. In addition, the registration of the property in the sub-registry, with the payment of stamp duty and registration fees, is also necessary to authorize the legal transfer of ownership.

Stamp and registration fees form a vital part of the state's revenue; therefore, state governments may increase or decrease rates from time to time. Here is an overview of the current rates of flat registration charges in Pune.

Stamp duty and registration charges applicable in Pune from 1st April 2021

Below are the flat registration charges in Pune that home buyers have to pay from 1st April 2021.

Stamp duty Registration fees for the gender of the person in whose name the property gets registered

• Male 5% Properties above Rs.30 lakh: Rs.30,000. Properties below Rs 30 lakh: 1% of transaction value
• Women 5% Properties above Rs 30 lakh: Rs 30,000. Properties below Rs 30 million: 1% of transaction value
• Common 5% of properties above Rs 30 lakh: Rs 30,000. Properties below Rs 30 million: 1% of transaction value

How are stamp duty charges calculated?

The stamp duty calculation is not similar for all regions in India, and it varies from state to state. The central government of India sets registration fees and stamp duty, and any late payments will incur a 2% penalty each month. In addition, the stamp duty charge also depends on whether the property is old or new.

Here is an example illustrating the calculation of stamp duty and registration charges in Pune:

Antara buys a house with a carpet area of ??500 square meters. The property has a circle rate of Rs 42,760 per meter in the house's location.

Calculation of the comprehensive value of the property would be

Property value = Carpet area x rate per square metre.

Ie., 500 x 42,760 = Rs 2,13,80,000

Since the flat registration charges in Pune are 5% of the property value, Antara will be paying Rs.10,69,000 as stamp duty. The registration fee for properties above Rs.30 lakh is Rs.30,000, so Antara will be expanding that too.

Current stamp duty and registration fees in Pune

As mentioned above, the stamp duty and registration charges in Pune or anywhere else depending the calculator rate and the actual price of the registered property.

According to the latest updates given by the Government of Maharashtra in 2018, the stamp rates in Pune are

• Women 6%
• Men 6%
• Man and woman as co-owners 6%

Stamp duty for property registration for women buying houses

The Maharashtra government has announced a stamp duty concession for property registration for women home buyers. The stamp duty discount will be 1% if the contract of sale or real estate transfer registration gets done in a woman's name. It aims to promote real estate sales and improve the economic status of women by empowering them through home ownership.

What is the standby rate?

The standby rate (RR), known throughout Maharashtra as the circle rate, is a rate fixed by the government below which a seller cannot sell property in a given area. If the property priced by the seller is at a lower price than the government fixed rates, the stamp duty calculation will still get based on the RR rates.

By multiplying the circular rate by the property area, the buyer can calculate the property's value and then calculate the stamp duty.

Example

Suppose Ram Verma buys a house with a carpet area of ??400 square meters. The property is in Baner, where the circle rate is Rs 42,760 per sqft. In this case, the total value of the property will be:

Property value = Carpet area x rate per sq metre

400 x 42,760 = Rs 12,828,000

Assessing the stamp duty in Pune at 5% of the property value, Verma will have to spend Rs 6,41,400 as stamp duty. Since the property's worth is over Rs 30 lakhs, Verma will pay the following Rs 30,000 as the registration charge.

Current ready reckoner rate in Pune

Here is a table that gives a better outline of the prices:

Factors that affect Ready Reckoner rates in Pune

The emergency calculation rate tends to vary in several regions in Pune, and it depends on the overall market value of the area and the type of amenities available there.

The Pune administration has categorized the properties and suburbs of Pune into 19 zones or divisions, further divided into 221 sub-zones. This classification refers to the main railway lines and arterial roads (west to east).

The state government of Maharashtra usually allocates higher assessment rates to commercial properties and lower assessment rates to residential properties.

The standby rate also depends on the property. As far as Pune is concerned, the registration value of flats and apartments is quite different from independent houses and plots, even if both happen to get in the same locality.

Are any tax benefits available on stamp duty and registration fees?

According to Sec. 80C of the Income Tax Act of 1961, flat registration charges in Pune are allowed as part of tax deduction, and this section has allowed that deduction up to ? 1,50,000 for these charges. Additionally, only Individuals and Hindu Undivided Families can get tax benefits.

A taxon deduction can get claimed under the following conditions -

• A person can claim the tax deduction in the year the expenses get paid.
• The person is the land's legal owner, and the property's construction has been completed.
• The resale of real estate, residential land and commercial real estate is not eligible for a tax deduction.
• In the case of co-ownership, the co-owners could claim a deduction in the tax return. The tax deduction depends on their share of the land. However, a taxpayer cannot use this exemption with partial or full property ownership.

Whether a home buyer or a real estate developer in Pune, you must check stamp duty rates and their calculations to avoid any last-minute hassles.

Paying stamp duty online

Once you have registered, you can proceed with your payment. You must provide all the property details and pay using online channels like internet banking, and it will generate a confirmation after successful payment. After that, the buyer can book an appointment and proceed with the property registration.

Alternatively, buyers can also pay stamp duty in Pune by purchasing non-judicial stamp papers from a recognized dealer or through franking, where authorized banks stamp your document or attach a denomination. It is solid proof of payment of the stamp duty on the transaction.

Steps to use Stamp Duty Calculator

Here are a few steps to calculate stamp duty online –

Step 1: Click on the stamp duty calculation page. Select the deed of your choice, for example, "Agreement of Sale" and "Gift.

Step 2: Select an option like City Corporation or Cantonment. If you have selected Municipal Corporation, select the area, i.e. Municipal Corporation other than Mumbai and Nagpur.

Step 3: Enter the property's market value and consideration to determine the stamp duty in that region.

Other ways to pay stamp duty in Pune

There are three other ways you can pay stamp duty and registration fees in Pune -

Franking

In this procedure, you need to deposit the real estate contract details, stamp duty, and registration fees with a bank authorized to do franking. Franking is the process of stamping property documents. Banks usually attach a nominal value to the document, proving that the buyer has paid stamp duty for the transaction. However, banks charge a fee known as a franking charge for this transaction.

Non-judicial stamp paper

You can also pay taxes through licensed vendors. Purchase non-judicial stamp paper from a licensed dealer, print all the details related to the contract on the paper and deposit it with the Registration and Stamps Department along with stamp duty and registration fees.

E-stamp

To ensure a hassle-free and transparent mode of payment for flat registration charges in Pune, the Government of Maharashtra has set up an online payment portal for e-stamping. The online process is simple, transparent, efficient and avoids fraud.

• If you are already registered, enter your log-in information. If you are a new user, click on register new user and create a log-in.
• Enter all the details and select the location of the property.
• After entering all the data, select the payment gateway. All nationalized banks are listed on the website.
• Select a bank and make the payment. Also, print your payment receipt for future reference.

Stamp duty and secure registration title to the property are in the owner's best interest. Therefore, it is strongly recommended to register the property after the sale process is completed.

Conclusion

According to the latest announcement, flat registration charges in Pune have been increased by one per cent as the government is set to levy an additional percentage as metro cess on property purchases from 1st April 2022. The move will get implemented in Mumbai and Nagpur to channel funds into transport infrastructure in these three cities.

Under the additional metro directive, home buyers in Pune now have to pay seven per cent of the property value as stamp duty.

The Maharashtra state government had earlier reduced stamp duty on real estate from five per cent to two per cent until 31st December 2020 to support the sluggish real estate market hit by COVID-19. After December 2020, the government levied a three per cent stamp duty on residential properties until 31st March 2021. However, these flat registration charges in Pune reverted to five per cent on 1st April 2021.