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Stamp Duty and Registration Charges in Hyderabad

About Stamp Duty & Property Registration Charges

Hyderabad is the 6th most populated metropolis of India with property prices as varied as its demography. Such a highly populated area naturally sees increasing rates of property purchase. However, an important thing to remember before finalising such a purchase is that it involves stamp duty and registration charges in Hyderabad besides the property cost. These additional charges impact the property’s cost and are not necessarily covered by a home loan. 

What is Stamp Duty?

State governments levy a specific tax on the legal transfer of property ownership under Section 3 of the Indian Stamp Act of 1899. This is called stamp duty. Since individual state governments decide this amount, it varies across different states of India

Besides, stamp duty also varies depending on other factors. Some of them are:

  • Property type
  • Property location
  • Property usage
  • Owner’s age
  • Amenities available with property

The stamp duty, along with flat registration charges in Hyderabad, constitutes the property tax collected by the Registration and Stamps Department, Telangana.

What is the Stamp Duty on Property in Hyderabad?

Buyers must be aware of the stamp duty and registration charges in Hyderabad before proceeding to purchase a particular property, since these costs can add significantly to the final price. Stamp duty remains same throughout one state.

Therefore, buyers in Hyderabad will need to pay the amount prescribed for Telangana. Individuals need to a pay a stamp duty worth 4% of property value against all kind of property purchase in Hyderabad.

Besides, individuals also need to pay property registration charges in Hyderabad applicable at 0.5% of property value.

How are Stamp Duty Charges Calculated?

As already mentioned, in order to understand the final property price, individuals need to calculate the stamp duty and registration charges in Hyderabad. Here is a simple example demonstrating the calculation process.

If an individual plans to buy a house or apartment worth Rs.30 lakh, they would need to pay stamp duty at 4%. Additionally, the buyer needs to pay 0.5% house registration charges in Hyderabad.

Therefore, the stamp duty this buyer needs to pay is 4% of Rs.30 lakh, which amounts to Rs.1.2 lakh. Plus, he/she will need to pay additional registration charges for flat in Hyderabad equal to 0.5% of Rs.30 lakh, which is Rs.15,000.

Hence, this individual will incur additional Rs.1,35,000 as stamp duty and registration charges in Hyderabad besides the original property price. Note that buyers need to bear these costs under their home loan down payment.

Individuals finding this calculation cumbersome can use a Stamp Duty Calculator in Hyderabad to estimate such expenses instantly.