Owning a home of your own is a dream that all of us wish to fulfill. However, with the increasing price and value in properties per day, it is becoming hard to buy a property, especially at an early stage of your life. And while you are ensuring that you have enough finances to cover for the expense, stamp duty and registration charges are often overlooked upon. This poses an issue in your financial plans. Stamp duty and registration charges are a type of tax that is levied by the State government in order to register a property in any state in India such as Patna. Stamp duty and registration charges can vary from state to state all over India. Firstly, in order to understand the stamp duty and registration charges in Patna. You need to know what these charges are and how they work.
What is Stamp Duty?
Stamp Duty is a type of tax or fee that is charged by the state government in an agreement or a transaction that is documented. In other words, it is a tax that you need to pay for getting a document, depending on the document or a percentage of the agreed value mentioned in the document.
Stamp Duty can include conveyance deed, power of attorney, and more. It came into existence after the Indian Stamp Act, 1899 was passed. After you pay the amount, the documents or property acquired become legally valid. Stamp Duty can vary from state to state, in this article we will be looking at the calculation of stamp duty in Patna.
What is the Registration Charge?
Registration Charge is a fee that you need to pay after completing the payment of stamp duty. After the document that you have acquired is paid for, the document goes through a registration process. And in that process, you have to pay a fee. This procedure is under the Indian Registration Act, 1908. You do this procedure in order to record the document. So that you get ownership of the property.
Requirements for Stamp Duty and Registration Charges in Patna
There are some documents that you need to have in order to complete the registration process. The following are the documents you need during registration:
- Identification documents such as pan card, passport, and driving license of the seller and the purchaser.
- Original document along with two copies submitted to the sub-registrar of assurances.
- Proof of payment of stamp duty.
- Payment details.
- Receipt of stamp duty and registration charges paid.
After you submit the above documents, you will continue with the process of paying the stamp duty and registration charges in Patna.
How are Stamp Duty and Registration Charges in Calculated in Patna?
The amount charged in stamp duty is usually 5 to 7 percent of the property’s actual value. On the other hand, registration charges tend to be 1 percent of the property’s actual value. Also, these charges can lead to lakhs of rupees
As mentioned above, stamp duty and registration charges depend from state to state across India. Here we will look into the stamp duty and registration charges in Patna. They are as follows:
Conditions in Stamp Duty and Registration Charges in Patna
In the process of paying stamp duty and registration charges, there are some conditions which can lead to additional or reduced stamp duty such as:
- If a man sells the property to a woman, she will get a refund of 0.40 percent out of the property’s value.
- In case a woman sells the property to a man, they have to pay 0.40 percent more than the property’s value.
- If a woman sells the property to another woman, there is no reduced or additional charge.
Methods of Payment for Stamp Duty and Registration Charges in Patna
Stamp duty and registration charges have multiple options for payment. The one that you choose to pay through depends on your preference and convenience. The methods of payment are:
- Physically: This is the most common method of payment. You can buy stamp paper from authorized sellers. Stamp duty and registration charges in Patna can be paid physically just by visiting a sub-registrar office. However, choosing this method of payment can be time-consuming if you live far away from the office or just don’t have the time to visit the offices.
- E-stamping: They can also be paid online. Here, you have to log on to the official website and select the land/property registration tab. Then, after the registration, you can pay the required amount of stamp duty and registration charge online.
- Franking: The state government of Patna has authorized public institutions such as banks and post offices to pay the stamp duty and registration charges through the franking machine.
Is Stamp Duty Refundable?
No, stamp duty is not refundable.
Is Stamp Duty Claimed as Tax Deduction?
Yes, stamp duty can be claimed as tax deduction under Section 80c od Income Tax Act.
Does Stamp Duty Include GST?
As of now, stamp duty is separate from GST and have no effect on each other.