What Is the Stamp Duty in Ranchi?

Stamp duty in Ranchi is a tax you pay when you buy an immovable property. It's set at 4% of the property's value, regardless of gender. Additionally, the property value has a registration charge of 3%. Whether you buy individually or jointly, you will pay 7% of the property's value in stamp duty and registration charges.

How Is Stamp Duty Assessed in Ranchi?

Stamp duty in Ranchi, assessed on property transactions, stands at 4% for all genders. Registration charges, at 3%, are additional. Regardless of gender, buyers must allocate 7% of the property value for stamp duty and registration. However, the average value per circle rate is considered when calculating the stamp duty.

Thus, while calculating the stamp duty, the property registration value cannot go below the government circle rate, regardless of the original registration or purchase price.

Factors Affecting Stamp Duty Rates in Ranchi

Age of the Property

The property's age plays a significant role in determining stamp duty rates in Ranchi. Typically, newer properties attract higher stamp duty charges compared to older ones. This variation reflects property value depreciation over time and aims to incentivise the purchase of older properties.

Age of Owner

In Ranchi, the property owner's age can influence stamp duty rates. Senior citizens above a specified age threshold, such as 60, may be eligible for reduced stamp duty rates.

Objective

The intended use of the property can influence stamp duty rates in Ranchi. Different rates may apply depending on whether the property is purchased for residential, commercial, or agricultural purposes. Residential properties generally incur lower stamp duty rates than commercial or industrial properties.

Location

Stamp duty rates in Ranchi vary based on the property's location within the city or surrounding areas. Properties in prime or developed locations like Ashok Nagar and Kokar typically attract higher stamp duty charges than those in peripheral or less developed areas like Chakme and Burmu.

Amenities

The presence or absence of amenities within a housing project can impact stamp duty rates in Ranchi. Properties offering extensive amenities such as clubhouse facilities, swimming pools, and landscaped gardens may attract higher stamp duty charges and vice versa.

Documents Needed for Payment of Stamp Duty in Ranchi

The documents needed for payment of stamp duty in Ranchi are:

• Agreement to sale / Sale deed
• Encumbrance certificate
• Property tax receipts
• No-objection certificate
• Power of Attorney, if applicable
• Stamp duty and registration fee payment proof
• Occupancy certificate for new buildings
• Completion certificate for under-construction buildings
• TDS deduction certificate (applicable on properties worth over Rs 50 lakh))
• Passport-size photos of buyer and seller
• PAN Card of buyer and seller
• Aadhaar card of seller and buyer
• Address proof of buyer, seller and witnesses

How To Pay Stamp Duty in Ranchi

To pay stamp duty in Ranchi, you have three options:

Online Payment via SHCIL Website:

• Register on the Stock Holding Corporation of India Ltd (SHCIL) website.
• Log in and select your state and the nearest SHCIL branch.
• Fill in the required details and generate an Online Reference Acknowledgement No.
• Pay the stamp duty amount online through Net Banking/Debit Card/NEFT/RTGS/FT.
• Visit the nearest SHCIL branch with the printout of the acknowledgement to collect the e-stamp certificate.

Offline Payment Through Authorised Banks via Franking:

• Visit an authorised bank associated with the Sub-Registrar Office (SRO).
• Pay the stamp duty amount in cash or by demand draft.
• Using a franking machine, the bank will affix a stamp or mark on the property document as proof of payment.

Offline Payment Through Authorised Stamp Vendors:

• Visit the sub-registrar's office in the area where the property is located.
• Determine the stamp duty amount required for the transaction.
• Purchase non-judicial stamp papers of the same value from an authorised stamp vendor nearby.

4 Ways to Save on Stamp Duty Charges

Avail tax benefits on stamp duty charges

A buyer purchasing real estate may deduct up to Rs 1.50 lakh from the stamp duty and registration price under Section 80C of the Income Tax Act. If there are joint owners, each can deduct this amount according to their half of the property.

Projects With Fewer Amenities

Opting for housing projects that offer fewer amenities can also lead to lower stamp duty charges in Ranchi. Unlike premium housing societies that attract higher stamp duty rates due to their extensive facilities, projects with basic amenities incur lesser stamp duty expenses.

Less Developed Areas

In many states, including Jharkhand, stamp duty rates vary based on the property's location, with higher charges typically imposed in urban areas than rural regions. Buyers can capitalise on lower stamp duty rates by opting for properties outside municipal areas, reducing their overall expenditure.

Invest in a Project that Offers Stamp Duty Exemptions

Exploring projects offering stamp duty exemptions can benefit homebuyers in Ranchi. Recently, developers keen on stimulating sales have introduced schemes wherein they absorb the stamp duty burden on behalf of buyers. While this may seem advantageous initially, buyers must conduct thorough due diligence on such projects to ensure transparency and avoid hidden costs. Evaluating other aspects of the property purchase alongside stamp duty exemptions is essential to make an informed decision.

Penalties for Not Paying Stamp Duty in Ranchi

In Ranchi, failing to pay stamp duty can result in penalties. If the evasion amount is up to Rs 10 lakh, the penalty can be a minimum of Rs 50,000 or 20% of the evasion amount, whichever is more. For evasion involving more than Rs 10 lakh, you could face imprisonment for up to one year, a fine of at least Rs 50,000, or both.

Conclusion

How is stamp duty assessed in Ranchi?

Stamp duty in Ranchi is assessed based on the property's value, determined by the circle rate or purchase price, with a standard rate of 7%.

Factors affecting stamp duty rates in Ranchi

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

Documents needed for payment of stamp duty in Ranchi

• Agreement to sale / Sale deed
• Encumbrance certificate
• Property tax receipts
• No-objection certificate
• Power of Attorney, if applicable
• Stamp duty and registration fee payment proof
• Occupancy certificate for new buildings
• Completion certificate for under-construction buildings
• TDS deduction certificate (applicable on properties worth over Rs 50 lakh))
• PAN Card of buyer and seller
• Aadhaar card of seller and buyer
• Passport-size photos of buyer and seller
• ID proof of buyer, seller and witnesses
• Address proof of buyer, seller and witnesses

How to pay stamp duty in Ranchi?

• Online Payment via the SHCIL Website
• Offline Payment Through Authorised Banks via Franking
• Offline Payment Through Authorised Stamp Vendors

4 ways to save on stamp duty charges

• Watch out for hidden fees
• Projects With Fewer Amenities
• Less Developed Areas
• Invest in a Project that Offers Stamp Duty Exemptions

Penalties for not paying stamp duty in Ranchi

Stamp duty evasion up to Rs 10 lakh results in a minimum Rs 50,000 penalty or 20% of the evasion amount; for amounts exceeding Rs 10 lakh, imprisonment up to one year, a minimum Rs 50,000 fine, or both.