What Is the Stamp Duty in Chandigarh?
Stamp duty is a specific tax, a state-imposed fee that investors must pay to own the property legally. The stamp-duty charges vary from state to state, as each state selects its own distinct amount of this tax. The stamp duty charges in Chandigarh are around 5% for male buyers and female buyers.
How Is Stamp Duty Assessed in Chandigarh?
To legally own property in Chandigarh, buyers must pay a stamp duty of 5% of the amount of the real estate property. No stamp duty charges are paid on the property registration, in the cancellation of the will, or even at the property transfer within blood relatives.
To understand the calculation of the property registration in Chandigarh, let's take an example:
Person A invested in a property worth Rs. 50 Lakh in 2024. The stamp duty applicable on this property will be 5% of Rs. 50 Lakh, i.e. Rs 2,50,000.
Factors Affecting Stamp Duty Rates in Chandigarh
Age of the Property
In Chandigarh, the older the property, the lesser the stamp duty charges. Thus, if someone invests in new properties, they must pay more stamp duty charges and vice versa.
Age of Owner
Another key factor affecting the stamp duty rates in Chandigarh is the age of the property owners, as old property buyers have to pay lower stamp duty charges than young property buyers.
Gender of Owner
The gender of the property owner plays a crucial role at the time of stamp duty payment. However, in Chandigarh, stamp duty rates are the same for both genders. Thus, no rebate is given to female property buyers.
Objective
The objective of the property will also affect the stamp duty charges in Chandigarh, as the stamp duty rates for commercial property are higher than those for residential property.
Location
If the property in Chandigarh is located in an urban city or key locations such as Sector 10, Sector 8, Sector 9, Sector 11 and others, it will result in higher stamp duty charges. Meanwhile, the properties in the less developed locations of Chandigarh, such as Sector 37, Sector 38 and others, will have lower stamp duty charges.
Amenities
If property owners are investing in properties that have high-end luxuries, then the stamp duty charges will also be higher. If the properties have few amenities, stamp duty charges will be lower.
Documents Needed for Payment of Stamp Duty in Chandigarh
Some crucial documents needed for the payment of stamp duty charges in Chandigarh include:
- TDS Certificate
- Sale agreement
- Sale deed
- Property tax receipts
- Encumbrance certificate
- Power of attorney
- No objection certificate
- PAN Card ( buyer and the seller )
- Aadhaar card of the buyer and the seller
- ID proof (buyer and the seller)
- Address proof of the buyer, witnesses and seller
- Passport-size photos of buyer and seller
- TDS reduction certificate
- Occupancy certificate
- Completion certificate
- Payment proof for stamp duty and registration charges.
How To Pay Stamp Duty in Chandigarh
Online: Buyers must visit the SHCIL website to make the payment online.
Offline: Buyers have three options when they opt for an offline mode of payment for stamp duty.
- Stamp Vendors - Property buyers can purchase stamps from authorised vendors and then pay stamp duty.
- Franking Machine - Property buyers can choose the franking machine, which generates the challan once the stamp duty payment is made in Chandigarh.
- State Bank of India - Buyers can visit the State Bank of India and get the stamp duty payment challan.
4 Ways To Save on Stamp Duty Charges
1. Getting a Residential Property
Buyers can save on stamp duty by buying a residential property with lower charges. However, if you opt to buy a commercial property, they might pay higher stamp duty charges.
2. Projects With Fewer Amenities
If the properties in Chandigarh offer many amenities, they will incur many stamp duty charges, and buyers will have to pay more. However, if there are fewer amenities, property buyers will save stamp duty charges.
3. Less Developed Areas
Suppose the properties in Chandigarh are located on the city's outskirts or in the less developed areas of the city. In that case, property buyers have to pay fewer stamp duty charges than in the more developed areas or the primary localities of Chandigarh.
4. Invest in a Project that Offers Stamp Duty Exemptions
To save up on stamp duty charges, property buyers should look for properties offering stamp duty exemptions, as this will result in paying less stamp duty charges by property owners.
Penalties for Not Paying Stamp Duty in Chandigarh
If some property buyers have yet to pay the stamp duty charges in Chandigarh, they will pay a penalty for non-compliance with the Chandigarh Stamp Act, which is a fine of up to Rs. 1000.
Conclusion
What is property investment in Chandigarh?
In Chandigarh, the stamp duty rate is 5% for male property buyers and 5% for female property buyers. Property buyers must pay the stamp duty, or else they will have to pay 25% more than the statutory charges.
Factors affecting stamp duty in Chandigarh
- Age of the Property
- Age of Owner
- Gender of Owner
- Objective
- Location
- Amenities
Documents needed for payment of stamp duty in Chandigarh
- TDS Certificate
- Sale agreement
- Sale deed
- Property tax receipts
- Encumbrance certificate
- Power of attorney
- No objection certificate
- PAN Card ( buyer and the seller )
- Aadhaar card of the buyer and the seller
- ID proof (buyer and the seller)
- Address proof of the buyer, witnesses and seller
- Passport-size photos of buyer and seller
- TDS reduction certificate
- Occupancy certificate
- Completion certificate
- Payment proof for stamp duty and registration charges.
How to pay stamp duty in Chandigarh?
- Online via the SHCIL website
- Offline via stamp vendors, franking machines and State Bank of India
4 ways to save stamp duty charges
- Getting a residential property
- Projects with fewer amenities
- Less developed areas
- Invest in a project that offers stamp duty exemptions
Penalties for not paying stamp duty in Chandigarh
The Chandigarh Stamp Act can result in a fine of up to Rs. 1000.
