Indian States With The Highest And Lowest Property Registration Rates

Many of us would have materialised our property purchase plans much sooner if we did not have to save for additional expenses that come in the form of stamp duty and registration charges. Also, those living in some Indian states have to wait a little longer on that account because these charges are comparatively higher there.

States with high registration costs

Property purchases in the southern states of Tamil Nadu and Kerala become higher due to high registration costs. In Tamil Nadu, for instance, buyers have to spend 11 per cent of the deal value on stamp duty and registration and fees. In Kerala and Puducherry both, homebuyers spend 10 per cent on property registration. In Madhya Pradesh, homebuyers will need to spend as much as 9.5 per cent on registration and stamp duty costs. In Andhra Pradesh, it adds up to 7.5 per cent. In Bihar, the registration cost may add up to eight per cent.

 States with lower registration costs

Among the Indian states, which encourage buyers and investors to purchase property through lower stamp duty and registration charges are: Assam, Himachal Pradesh and Odisha. Combined together, the two duties add up to form five per cent of the property value as the cost of registration in all these states. In Karnataka and Telangana, this cost adds up to 6.6 per cent and six per cent, respectively.

How to save on property registration cost?

Since the states generate a major part of their annual revenue from stamp duty and registration charges, it may be impractical to expect them to substantially reduce rates. However, at a time when the overall economy in general and the real estate sector in particular, are trying to recover from a slowdown, some reduction in rates is desirable. Also, there are ways to lower these costs. 

Many states encourage property ownership among women and offer lower stamp duty charges to them in case the property is registered in her name. Haryana is a case in point. Delhi, Uttar Pradesh, Punjab and Rajasthan are other examples. In J&K, women owners do not have to pay any stamp duty while they have to pay a token fee of Rs 1 only in Jharkhand. In case you find the circle rates higher than the market rates, you could also request the sub-registrar to seek monetary relief.

“Not many buyers are aware that under the state stamp act they can appeal to the sub-registrar for determination of market value. The sale deed/conveyance deed will be kept pending without completing registration. The matter is referred to the authority concerned for determination of the market value. In case the authority is convinced that market value is lower than circle rate, the buyer is allowed property registration at a lower value. Therefore, a buyer can save on property registration charges,” says financial advisor Nitin Bhatia.