If you are planning to buy property in Pune, it is essential to understand all the costs involved with the purchase. Two of the key expenses to be considered are stamp duty and registration charges in Pune. As these charges constitute a major portion of the purchase, it is important to calculate them in advance. The guide below will answer all your questions.
What is Stamp Duty?
The tax paid to our Government when buying property is called Stamp Duty. It is mandated by the central government but the percentage varies from state to state. Essentially it is a fee for legal recognition of your property documents, making the property sales transaction invalid if you fail to pay the stamp duty.
What are Registration Charges?
For officially recording your property documents in your name, one pays registration charges to the Government. This gives you legal ownership of your property and is legally mandatory to pay, else the property sales transaction will be considered invalid.
Calculating Stamp Duty and Registration Charges in Pune
In Pune, the property’s stamp duty and registration charges are calculated based on the market value of the property or agreement value whichever is higher. Here’s how:
- For properties within PMC (Pune Municipal Corporation) or PCMC (Pimpri Chinchwad Municipal Corporation), stamp duty is 6% of the property value.
- For properties outside the limits of PMC or PCMC, the stamp duty is 5% of the property market value.
- The registration charge for properties in Pune is 1% of the property value, but not exceeding INR 30,000.
- In 2022, the Maharashtra Government has also introduced a 1% Metro Cess along with Stamp Duty for some cities including Pune.
So, let us say you are buying a property worth INR 50 Lacs within the corporation limit in Pune,
Your Stamp Duty is 6% of 50,00,000 = INR 3,00,000
Your Registration charges are 1% of 50,00,000 = INR 50,000 but is capped at INR 30,000
Your Metro Cess is 1% of 50,00,000 = INR 50,000
Hence the total amount of Stamp Duty and Registration Charges in Pune paid on this flat is INR 3,80,000
Factors Affecting Stamp Duty and Registration Charges in Pune
- Property Location: Whether the property is located inside or outside the municipal limits decides the rates
- Property Purpose: Residential and commercial properties may have different rates
- Owner’s Age: Senior citizens may receive concessions, which will be discussed below.
- Owner’s Gender: In many cases, there is 1% concession given to female owners on residential properties.
- Type of Deed: Based on the type of property deed, the stamp duty will differ as follows – 5-7% for sales deed, 3% for gift deed, 5-7% for conveyance deed and it varies for lease deed.
Important Note for the Year 2024
The existing rebate on stamp duty in Pune for the year 2024 for women buyers is 1% and senior citizens is 1% (with a maximum limit of INR 1 Lakh).
Yes, most banks and financial institutions include these charges while financing i.e. in the home loan amount. However, it is best to confirm with your lender.
No, Stamp Duty and Registration Charges are non-refundable.
IGR Maharashtra provides a facility to calculate the duty online on their website: https://www.igrmaharashtra.gov.in/frmHOME.aspx
The Government also provides a facility to pay these fees and charges online to accelerate and simplify the process, and reduce paperwork. Follow the given instructions below:
Go to the website: https://gras.mahakosh.gov.in/igr/frmIndex.php
Click on the Inspector General of IGR tab and you will be routed ahead.
Go to Pay without registration, if unregistered. Fill in the details as asked.
Choose the correct option:
– only Stamp duty payment
– Only Registration Fee payment
– Stamp Duty and Registration Charges
Select the applicable district of the property (the SRO under which your property falls), and the nature of your document
Enter the stamp duty amount. If the user has chosen to pay registration charges as well, then that should also be filled.
Enter all the applicable details of the property, seller and buyer
Select the desired mode of payment
Hit Proceed
Stamp Duty and Registration charges in Pune are essential components of your property cost and hence, it is important to calculate it in advance to understand your financial situation in advance. It is also important to consider all the factors such as type and location of property, deed, age and gender of the owner while calculating the stamp duty.