What is the Stamp Duty in Hyderabad?

Stamp duty is a tax you pay when you buy a property. Each state in India has its own rules and rates for this tax. It's usually a percentage of the property's price. Paying stamp duty is crucial because it legally transfers property ownership. It's also proof of ownership in case of any legal issues, according to the Indian Stamps Act of 1899. In Hyderabad, the stamp duty is fixed at 4% of the property's value. The buyer must also pay registration charges and transfer fees of 0.5% and 1.5%, respectively.

How is Stamp Duty Assessed in Hyderabad?

In Hyderabad, stamp duty, registration fees and transfer fees are based on the nature of the transactions. For example, if the nature of the transaction is 'Sale Deed' for a property worth Rs 50 lakh.

Stamp Duty = 4% of Rs. 50 lakh, i.e., Rs. 2,00,000

Transfer Fees = 1.5 % of Rs. 50 lakh, i.e., Rs. 75,000

Registration Charges = 0.5% of of Rs. 50 lakh, i.e., Rs. 25,000

Therefore, the total amount payable would be Rs. 3,00,000

Factors Affecting Stamp Duty Rates in Hyderabad

Age of the Prope rty

The age of a property is a pivotal determinant of stamp duty charges. Older properties typically incur lower stamp duty rates compared to newer ones.

Age of Owner

In Hyderabad, as in many other regions, senior citizens often benefit from reduced stamp duty rates. Individuals above a certain age threshold, usually 60 or 65, may qualify for concessional rates. For instance, while the standard stamp duty rate might be 6% for a property, seniors could be entitled to a rate of 4%.

Objective

The purpose for which the property is being acquired also plays a role in determining stamp duty rates. Residential properties generally have lower stamp duty rates compared to commercial properties.

Location

Stamp duty rates vary depending on the location of the property within Hyderabad. Properties in prime urban areas like Ameerpet, Sanathnagar, Khairatabad, Musheerabad, Amberpet., Nampally, and Secunderabad have higher stamp duty rates than suburban or rural regions.

Amenities

The amenities offered by a property also influence stamp duty charges. Properties with extensive facilities, such as community halls, swimming pools, gyms, etc., usually attract higher stamp duty payments. Conversely, properties with limited amenities may incur lower stamp duty fees.

Documents Needed for Payment of Stamp Duty in Hyderabad

When paying stamp duty in Hyderabad, you need to make sure you have the following documents:

• Demand draft/ challan of payment of complete stamp duty.
• Aadhaar card.
• Encumbrance (EC) certificate
• Section 32A photo form of every executant and witness.
• Property card of Telangana
• Identity proof of all the concerned parties, i.e. buyer, seller and witnesses
• Address proof of the buyer(s) and the seller(s).
• PAN card.
• Pattadar passbook in case of agricultural land
• Documents for Power of attorney
• Photograph of the exterior view of the property

How to Pay Stamp Duty in Hyderabad?

Online Payment

• Visit the official website of the Registration and Stamp Department.
• Click on 'E-payments' under 'Online Services'.
• Choose from:
  • 'Document registration e-challan'
  • 'Non-registration e-challan'
  • 'Franking services e-challan'.
• Complete the registration process.
• Receive a twelve-digit challan number and a five-digit passcode via SMS.
• Proceed to the payment section, print the passcode and challan number, and agree to the disclaimer.
• Pay using Credit/Debit card, NEFT, or Net banking through SBI ePay.
• After successful payment, print the duplicate challan with the SBI ePay confirmation reference number.
• Submit the duplicate challan and other documents to the sub-registrar during property registration.

Stamp Paper

• Purchase stamp papers from authorised vendors / Sub Registrar.
• Fill out the required details on the stamp paper.
• Pay the stamp duty amount through accepted payment methods.
• Use the stamped document as proof of payment during property registration.

Franking

• Visit a designated franking centre.
• Present the document for which stamp duty needs to be paid.
• Pay the stamp duty amount at the franking centre.
• Receive a franking stamp on the document as proof of payment.
• Submit the document with the franking stamp during property registration.

4 Ways to Save on Stamp Duty Charges

Pay stamp duty based on circle rate/guidance value

One way to save on stamp duty in Hyderabad is by registering the property based on the government-prescribed circle rate instead of the market value. With the stamp duty fixed at 4%, opting for the circle rate can lead to substantial savings for buyers, especially when the market rate exceeds the circle rate. This strategy allows buyers to legally declare a lower property value, reducing their stamp duty liability and maximising cost savings on property transactions.

Projects With Fewer Amenities

Choosing housing projects in Hyderabad that offer basic amenities rather than premium facilities can also lead to significant savings on stamp duty charges. Properties without extravagant amenities tend to have lower stamp duty rates. You can effectively reduce your stamp duty expenses by prioritising your needs and opting for projects with essential amenities.

Less Developed Areas

In Hyderabad, stamp duty charges may vary depending on the locality. Generally, properties located in less developed or rural areas often have lower stamp duty rates compared to those in urban regions. You can take advantage of reduced stamp duty costs by exploring options in less developed areas outside municipal limits. This strategic move can result in considerable savings on your property purchase.

Invest in a Project that Offers Stamp Duty Exemptions

There has been a growing call for exemptions on stamp duty charges for affordable housing in Hyderabad. Keeping an eye on projects that offer such exemptions can be financially advantageous. This exemption could save buyers a significant amount on stamp duty charges if implemented. Therefore, staying informed about any developments regarding stamp duty exemptions for affordable housing projects in Hyderabad is crucial for maximising your savings.

Conclusion

How is stamp duty assessed in Hyderabad?

In Hyderabad, stamp duty for a sale deed is assessed at 4% of the property value and transfer fees at 1.5%.

Factors affecting stamp duty rates in Hyderabad

• Age of the Property
• Age of Owner
• Gender of Owner
• Objective
• Location
• Amenities

Documents needed for payment of stamp duty in Hyderabad

• Demand draft/ challan of payment of complete stamp duty.
• Aadhaar card.
• Encumbrance (EC) certificate
• Section 32A photo form of every executant and witness.
• Property card of Telangana
• Identity proof of all the concerned parties, i.e. buyer, seller and witnesses
• Address proof of the buyer(s) and the seller(s).
• PAN card.
• Pattadar passbook in case of agricultural land
• Documents for Power of attorney
• Photograph of the exterior view of the property

How to pay stamp duty in Hyderabad?

• Stamp Paper
• Franking
• E-Stamping

4 ways to save on stamp duty charges

• Pay stamp duty based on circle rate/guidance value
• Projects With Fewer Amenities
• Less Developed Areas
• Invest in a Project that Offers Stamp Duty Exemptions