What is the Stamp Duty in Bhubaneshwar?

Stamp Duty in Bhubaneshwar, Odisha, is a fee the state government imposes when you buy property. It's 5% of the property value for males, while for females, it's 4%, with a 1% rebate since 2014. The aim is to support female homebuyers and make property ownership more accessible. Stamp duty is crucial for registering your property in the government's records and avoiding legal disputes over land ownership. So, when buying property in Bhubaneshwar, budget for stamp duty and other expenses.

How is Stamp Duty Assessed in Bhubaneshwar?

In Bhubaneswar, you must pay stamp duty when you buy a property. Stamp duty is a tax based on the property's value. For example, if a property costs Rs 65,00,000, a male buyer would pay 5% of this amount as stamp duty, which is Rs 3,25,000. However, if the buyer is female, they get a discount and only have to pay 4%, which is Rs 2,60,000. Additionally, there's a fixed registration charge of 2%, which is Rs 1,30,000 for both male and female buyers. So, in total, a male buyer pays Rs 4,55,000 for taxes, while a female buyer pays Rs 3,90,000. Thus, the female buyer saves Rs 65,000 compared to the male buyer. The total cost of the property, including these taxes, for a male buyer would be Rs 69,55,000, and for a female buyer, it would be Rs 68,90,000.

Factors Affecting Stamp Duty Rates in Bhubaneshwar

Age of the Property

The age of the property directly impacts stamp duty rates. For instance, let's consider two properties—a newly constructed apartment and a heritage bungalow. Due to depreciation, the stamp duty for the heritage bungalow, an older property, might be lower than that for the newly constructed apartment.

Age of Owner

Age can influence stamp duty rates, especially for senior citizens. For example, individuals above a certain age threshold (65-70 years) might be eligible for discounts on stamp duty. This measure aims to support older individuals in property transactions.

Gender of Owner

In Bhubaneshwar, stamp duty rates vary depending on the gender of the property owner. For instance, the stamp duty rate for male property owners is 5%, while for female property owners, it's 4%.

Objective

The purpose for which a property is used can significantly influence stamp duty rates in Bhubaneshwar. Commercial properties typically incur higher stamp duty fees compared to residential properties. This high fee is due to the additional amenities, floor space, and security requirements associated with commercial buildings.

Location

Location is a crucial factor affecting stamp duty charges in Bhubaneshwar. Properties in municipal localities and upscale urban areas like Patia, Chandrasekharpur, Jaydev Vihar and Saheed Nagar tend to have higher stamp duty rates. On the other hand, properties located in Panchayat limits or on the outskirts of towns like Gandamunda, Pokhariput, Palaspali and Bhimatangi may have lower charges.

Amenities

Specific amenities on a property can also impact stamp duty rates in Bhubaneshwar. Properties with various amenities such as lifts, swimming pools, libraries, clubs, gyms, community halls, and sports areas may incur additional stamp duty fees during registration. These extra charges account for such amenities' added value and convenience.

Documents Needed for Payment of Stamp Duty in Bhubaneshwar

Documents required for stamp duty payment in Bhubaneshwar are as follows:

• Property records in original, signed by all parties
• Property Card
• Aadhaar Card and PAN Card of buyer and seller
• Encumbrance Certificate
• Power of Attorney
• Two reliable witnesses with ID proofs
• Pictures of buyer and seller
• Pattadar passbook (for agricultural land)
• Photocopy of Section 32A
• Outside shot of the property
• GPA / SPA documents, if any
• Copies of link documents
• Web land copy (for agricultural land)
• Payment receipt for stamp duty and registration charges

How to Pay Stamp Duty in Bhubaneshwar?

Stamp Paper

The first method is stamp paper, a traditional way of paying stamp duty. This method is relatively straightforward, but make sure you purchase the stamp paper from a reliable source. Here's how it works:

• Buy stamp paper from an authorised vendor.
• On this paper, the terms of your agreement are printed.
• The buyer and seller sign the document.
• Remember to complete this process within four months of signing.

E-stamping

The second method is e-stamping. This method is a modern and convenient way to pay stamp duty online without leaving home. In Bhubaneshwar, this process is managed by the Stock Holding Corporation of India Limited (SHCIL). Here's how it goes:

• Apply for e-stamping and pay the stamp duty online through a computer-based process.
• After payment, you will receive an e-stamp certificate with a unique certificate number (UIN).
• Download the certificate for future reference.

Franking

The third method is franking, involving getting your documents stamped at a bank or a franking centre. Here's what you do:

• Print your agreement on plain paper and take it to a bank or a franking centre.
• Get the documents verified.
• Make the stamp duty payment.
• Once the payment is made, they will stamp the papers for you.
• Alternatively, you can purchase pre-printed stamp papers that have already undergone the stamping process.
• After franking, both parties can sign the documents.

4 Ways to Save on Stamp Duty Charges

Choosing Projects with Basic Amenities

Some housing projects include extravagant amenities like swimming pools, gyms, or clubhouses. While these facilities can be attractive, they often lead to higher stamp duty charges. Opting for projects with fewer amenities can help you save money on stamp duty. These projects typically have lower overall costs, making them a more budget-friendly option.

Considering Less Developed Areas

Urban areas tend to have higher stamp duty rates compared to rural areas. If you purchase property primarily for residential purposes and are okay living outside city limits, exploring options in less developed areas can lead to significant savings on stamp duty. Plus, you might find more spacious properties at lower prices in these regions.

Exploring Stamp Duty Exemptions for Affordable Housing

There have been discussions about exempting affordable housing from stamp duty charges. If such an exemption is implemented, it could be a game-changer for property buyers in this segment. This initiative will make homeownership accessible and affordable for many individuals and families.

Pay stamp duty based on circle rate/guidance value

In Bhubaneshwar, stamp duty is based on a property's circle rate or guidance value, which the government sets as the minimum registration value. This rate may be lower than the actual market value, allowing buyers to register properties at a lower value to reduce stamp duty costs. For instance, if a property is priced at Rs 1 crore in the market but has a circle rate value of Rs 80 lakh, a buyer could opt to register at the circle rate to pay reduced stamp duty. In Bhubaneshwar, stamp duty rates and regulations would apply accordingly, mirroring this approach.

Conclusion

How is stamp duty assessed in Bhubaneshwar?

In Bhubaneswar, stamp duty is assessed based on the property's value. It is 5% for male buyers, discounted 4% for female buyers, and a fixed registration charge.

Factors affecting stamp duty rates in Bhubaneshwar

• Age of the property
• Age of owner
• Gender of owner
• Objective
• Location
• Amenities

Documents needed for payment of stamp duty in Bhubaneshwar

To pay stamp duty in Bhubaneshwar, ensure you have original property records, Aadhaar and PAN cards, witnesses' IDs, and other necessary documents, along with payment receipts, for a smooth transaction.

How to pay stamp duty in Bhubaneshwar?

• Stamp Paper
• E-Stamping
• Franking

4 ways to save on stamp duty charges

• Choosing projects with basic amenities
• Considering less developed areas
• Exploring stamp duty exemptions for affordable housing
• Pay stamp duty based on circle rate/guidance value