When dealing with any real-estate undertakings, it is important not to overlook property registration charges. Such charges in Mumbai and other metropolitan cities can often run high. The registration charges in Mumbai across all areas is 1% of the property value. Here, areas include those within municipal limits of any urban area, those within the limits of any municipal council/panchayat/cantonment of any area within the MMRDA, and those within the limits of any gram panchayat.
Property registration charges in Mumbai are the fees levied for registering a property on your name in the city. On the other hand, the property circle rate or ready reckoner rate is the minimum rate at which any transactions related to property registration is allowed. The circle rate in Mumbai is handled by the Stamps and Registration Department.
-
Determine the property’s built-up area. It is usually mentioned in the property documents.
-
Pick the right property type. Options include flat, plot, house, builder floor, etc.
-
Find the latest circle rates in Mumbai for the locality or area that the property is located in.
-
Calculate the minimum assessment value based on the ready reckoner rate.
There are six main factors that affect the stamp duty levied on any given property. For a better understanding of these factors, read on.
- Gender: In several states across India, the respective state government offers special concessions or deals to women. These incentives promote property ownership among women. For example, in Punjab, male owners must pay 7% stamp duty, whereas female owners are charged with only 5%. In case, the property is purchased jointly by a male and a female, the applicable stamp duty is 6%.
- Age: Senior citizens enjoy the benefit of subsidized rates in many states.
- Property Amenities: The amenities available with a property come at a cost and the government has a list of around 20 such amenities. For instance, if you have a club, gym, sports area or swimming pool, the stamp duty is typically higher.
- Property’s Purpose: Residential properties enjoy the benefit of a lower stamp duty as compared to commercial properties.
- Property’s Location: Upscale or municipal localities generally attract a higher charge as compared to the properties located in the outskirts.
- Property Status: Whether a property is old or new, it plays an important role in the final stamp duty amount.
With this information at your disposal, you are now better equipped to handle property dealings. This will help while you are buying a property, opting for a Loan Against Property or similar undertakings.
*Terms and conditions apply
