Stamp duty, Cess and Registration charges are associated with the purchase of a property in Pune. Stamp duty and Registration charges vary from state to state. These are payable under Section 3 of the Indian Stamp Act, 1899. Government collects these Charges to validate sale agreements as well as to keep a record of it.

A sale deed on which stamp duty is paid, is a proper and legal document. It can be produced as an evidence in courts. The buyer has to bear the cost of stamp duty, Cess as well as registration cost, both of which are fixed by the Maharashtra government.

Ready Reckoner Rate is declared by the respective state governments. Ready Reckoner Rate is of two types. Land Value and Composite value. Composite value comprises of land value as well as the value of the building. Once in every 3-4 years the Ready Reckoner Rate Changes. One can’t sell a property below Ready Reckoner Rate. So, the saleable value of the property should actually be the Ready Reckoner Rate or the market value, whichever is greater.

Stamp duty, Cess, Registration Charges for Flat, land and Commercial Properties in Pune

Stamp Duty works out to be 5% in Urban Areas as well as Rural Areas. Cess will be 1% of the property value. Registration charge will be 1% of sale value of the property or INR 30,000 whichever is less.

How the Flat, land and Property Stamp duty and Registration charges are calculated?

Let us say an area in Pune i.e. “Aundh”. The ready reckoner rate of “Aundh” is Rs. 9,332 per square feet. This implies the property registration value of Aundh must not be below Rs. 9,332 per square feet. It may be higher, but must not be below it.

Let’s consider a person “Namdeo” who wants to buy a land in Aundh. The property measures 1,400 sq. ft. The value of property for sale is equal to Ready Reckoner rate. Now the calculation goes as below.

Case:1 – When Ready Reckoner rate > Sale Value of the Property

The Ready Reckoner rate of the property will be Rs. 9332 times 1,400. So, it is Rs. 1,30,64,800.

Stamp Duty Charges = 5% of saleable value (Rs.1,30,64,800) = Rs. 6,53,240.

Cess = 1% of saleable value (Rs. 1,30,64,800) = Rs. 1,30,648.

Registration Charges = 1% of saleable value (Rs. 1,30,64,800) = Rs. 1,30,648.

Here Rs. 30,000 is less than Rs. 1,30,648. So, The Registration charge in this case will be Rs, 30,000.

The total Stamp Duty, Cess along with Registration charges will be Rs.6,53,240 + Rs.1,30,648 + Rs. 30,000 = 8,13,888.

Hence, Namdeo needs to pay to the Government Stamp Duty, Cess and Registration Charges i.e. Rs. 8,13,888.

Case:2 – When Ready Reckoner rate < Sale Value of the Property

Let’s Say Namdeo and the seller are agreed for a price of Rs 1,50,00,000. The Ready Reckoner rate of the property will be Rs. 9332 times 1,400. But in this case Rs. 1,50,00,000 will be considered as salable value of the property.

Stamp Duty Charges = 5% of saleable value (Rs.1,50,00,000) = Rs. 7,50,000.

Cess = 1% of saleable value (Rs. 1,50,00,000) = Rs. 1,00,000.

Registration Charges = 1% of saleable value (Rs. 1,50,00,000) = Rs. 1,50,000.

Here Rs. 30,000 is less than Rs. 1,50,000. So, The Registration charge in this case will be Rs, 30,000.

The total Stamp Duty, Cess along with Registration charges will be Rs.7,50,000 + Rs.1,50,000 + Rs. 30,000 = 9,30,000.

Hence, Namdeo needs to pay to the Government Stamp Duty, Cess and Registration Charges i.e. Rs. 9,30,000.

You can avail Zippserv Property registration services either to buy a new property or a resale property in the attached link.

Special Note

• You need to pay the stamp duty in the Government Receipt Accounting System(GRAS).
• Calculate the stamp duty and make a payment on the portal. After payment of the stamp fee, a challan will be generated with a unique identification number.
• At the time of sale deed registration, you need to attach the challan with the property document papers.
• You can either make the stamp fee payment at the time of Sale Agreement or can pay it before sale deed registration. Either way it is valid. So, Stamp duty is paid only once.