Owning a house is no doubt one of the proudest moments in one’s life. Indian cities have seen a tremendous rise in house-owners, especially in the post pandemic era. There have been record worthy residential sales, in urban cities such as Mumbai, Delhi NCR, Pune, Bangalore, Hyderabad, etc.
The policies and initiatives by governments to boost the real estate market in India post pandemic also fuelled this continued boom-run. Major cities in Maharashtra, such as Mumbai, Pune, and Navi Mumbai, witnessed a surge in property deals, after the Maharashtra Government lowered stamp duty and registration charges in the state.
With the traditional New Year around the corner, the industry hopes to witness high sales for both residential and commercial properties. All across the market, developers have come up with lucrative deals and discounts, to attract maximum potential buyers. While some offer designing and customization, others levy off the stamp duty and property registration charges.
This brings us to the main discussion of the blog- what are Stamp Duty & Registration Charges? And what are the factors that influence these charges? Read on to know more.
What are stamp duty and registration charges on property?
A buyer has to pay a certain amount of tax to the state government, for every property transaction, which is known as stamp duty and registration charges.
Every property purchase is incomplete without its registration and documentation in the property owner’s name. The registration of a property is important, as it safeguards the buyer’s interest and property title when faced with a conflict.
Stamp Duty and Registration in Pune:
To legally transfer ownership for a property in Pune, the buyer has to pay stamp duty and registration charges, just as in every other city of our state and in India.
The “Pune Stamp Duty” is a tax levied by the Maharashtra government on various documents executed within the jurisdiction of Pune city. These documents include papers for property transactions, agreements, and deeds.
The stamp duty rates differ, depending on the type of document and the transaction value. For instance,when buying or selling a property in Pune, you are required to pay stamp duty on a certain percentage of the property’s value. Stamp duty rates in Maharashtra, are revised on a regular basis, and therefore change from time to time. The state government collects tax for documents under the Maharashtra Stamp Act, 1958; and uses it to generate revenue for the state.
Factors that determine Stamp Duty And Registration Charges:
The state legislature of Maharashtra levies enlistment and stamp obligation charges for all freehold and leasehold land, including agrarian land. The charges apply to all properties including residential spaces and business spaces. However, the actual amount of the stamp duty and registration charges in Pune depends on the different types of properties, and on certain factors such as:
The Property Type: The taxes paid on commercial properties are comparatively higher than those paid on residential homes.
The Location: The location of the property also plays a crucial role in the tax charges. Properties in Rural and semi-urban areas have stamp duty and registration charges than those in urban centres like Pune.
Market Value: The total area of the property and its market values are also factors that are considered when calculating the current stamp duty and registration charges.
The Age & Gender of the Owner: Governments often give extra concessions depending on the age and gender of the owner. Women and senior citizens have the benefit of availing subsidised Stamp duty and registration charges.
Stamp duty and registration is a necessary step in securing the purchase of your property. They are vital formalities that help ensure the legality of a property transaction. They protect both parties in case of any dispute regarding ownership of the property. Buyers can also benefit from claiming tax deductions on stamp duty and registration charges in Maharashtra, in the same year that the expenses are made.
At Pyramid Lifestyle, we make your dream spaces that stand tall on our foundation of purity, perfection and panache. The transparency with which we build your home, is emphasised on, throughout your home buying process. At Pyramid Lifestyle, we strive to empower our audience with the knowledge and know-hows of the industry, to keep them updated and help them make the right decisions. To know more about us and what we do, visit https://www.pyramidlifestyle.com/