Stamp Duty and Property Registration Charges in Andhra Pradesh

Property Registration and Stamp Duty Charges in Andhra Pradesh
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09:36 AM 27 Dec 2018

Andhra Pradesh Property Registration Process

The property registration is mandatory in India as per the Indian Registration Act, 1908. The transfer of property is to be registered to obtain the rights of the property on the execution date of the deed. And accordingly, the House Registration Charges In AP will be levied. Let us look at the process of property registration in Andhra Pradesh.

Documents Required for AP Property Registration

  • Passport-size photo of  property buyer and seller
  • Photo identification (Voter Card, Aadhar card, Passport, etc.)
  • Verified copy of the original sale deed.
  • Copy of the latest property register card (to be obtained from the City Survey Department).
  • Copy of Municipal Tax bill.
  • Stamp Duty in Andhra Pradesh
  • The stamp duty is the percentage of the transaction value levied by the state government, on every registered sale.

Property Registration Benefits

  • Registration of property helps for proper recording of documents which provide more authenticity.
  • To ensure the prevention of fraud, conservation of evidence, the transfer of title to the owner.
  • By registering a property, the document will maintain an up to date public record.

Stamp Duty

Stamp Duty is collected during the transfer of property from one person to another.

  • The state government collects the amount and is governed under the Indian Stamp Act 1922.
  • The State government collects stamp duty, and it varies from one state to another.
  • The payment of stamp duty includes stamp duty, transfer duty fee, and registration charges in AP. It is calculated on the market value of the property.

Stamp Duty Payment Process

  • If you buy a property, then registration of new property is mandatory. Also, you have to pay stamp duty and land registration charges in AP.
  • With the registration and payment of fees, you will become the owner of your property legally. This document helps in any future unexpected property disputes.
  • You will also have a duplicate copy of your sale or transfer deed in Sub-Registrar’s office. It will help in the case if you lose your original documents.

Types of Charges

  • Sale Deed
  • Gift Deed
  • Exchange Deed
  • Partition Deed
  • Lease Deed (where the period of lease is more than 12 months)
  • Transfer Deed
  • Mortgage Deed
  • Power of Attorney (General or Special)

Calculation of the Stamp Duty Charges Differs Based on Below Features:

  • Property location:  A property located in an urban area attracts more stamp duty compared to rural areas.
  • Property type: Lower stamp duty is charged for a residential property (flat/apartment) compared to a commercial property (industries/ commercial complex/ hotels).
  • Age of the property: A new property has more stamp duty than older/resale properties.
  • Gender of buyers: A female buyer can get a rebate on the stamp duty charges.
  • Age of buyer: A senior citizen can also get a rebate on the stamp duty charges.

Property Stamp Duty and Registration charges in Andhra Pradesh.

               Type Of Fee

   Registration Rates

    Stamp Duty Rates

Transfer Duty Charges

                       Sale

                 1%

                 5%

           1.50%

 Gift (Gift Within The Family)

                0.5%

                 2%

              0

                     Exchange

                0.5%

                 5%

            1.50%

                     Partition

                1000

                 2%

              0

                     Release

                1000

                 3%

              0

 Agreement Of Sale Cum     General Power Of Attorney

                    0

                 0

              0

How to Calculate the Stamp Duty and Land Registration Charges in Andhra Pradesh?

The stamp duty and registration charges in Andhra Pradesh are calculated using the formula given below:

  • Where property value is (Higher of Ready Reckoner Rate or Actual Transaction Value)
  • Ready Reckoner Rate/Circle Rate means, it is the minimum value of the property that is fixed by the state government. And, stamp duty is calculated as the higher of ready reckoner rate or actual transaction value.
  • Many property transactions in India take place by the market rate in a particular locality. The stamp duty and registration fees in AP paid by the buyer are calculated from the market rate. In rare cases, where the RRR is higher, the stamp duty and registration fees in Andhra Pradesh will be calculated on the RR rate.

For Example:

Assume, the property value in a particular area has RRR (Ready Reckoner Rate) of Rs.5000 per sq.ft. However, if the market price of the property is Rs. 6000 per sq.ft, the buyer has to pay stamp duty and land registration charges in AP on Rs.6000 per sq.ft, as it is higher.

Let you know in brief about the charges with the below examples.

Case 1:

If the Ready Reckoner Rate is Rs 70,00,000 and the Actual Transaction Value is Rs 80,00,000 then stamp duty @5% is calculated as

Stamp Duty = 5% of (Higher of Ready Reckoner Rate or Actual Transaction Value)

 (i.e.) 5% of (Higher of Rs 70 lakhs or Rs 80 lakhs)

80, 00,000*5/100

= 4 lakhs

Registration charge =1% of (Higher of Ready Reckoner Rate or Actual Transaction Value)

(i.e.) 1% of (Higher of Rs 70 lakhs or Rs 80 lakhs)

8000000*1.0/100

= 80,000

Transfer duty =1.5% of (Higher of Ready Reckoner Rate or Actual Transaction Value)

(i.e.) 1.5% of (Higher of Rs 70 lakhs or Rs 80 lakhs)

8000000*1.5/100

= 1, 20,000

Therefore, the amount of the stamp duty and registration charges in Andhra Pradesh  is 6,00,000

Stamp Duty = Rs 4,00,000

Registration Charge = Rs 80,000

Transfer Duty = Rs 1, 20,000

Total Registration Cost = 4,00,000+80,000+1,20,000 = 6, 00,000

Case 2:

If the Ready Reckoner Rate is Rs 1 crore and the Actual Transaction Value is Rs 70 lakhs, then stamp duty @5% is calculated as

Stamp Duty =5% of (Higher of Ready Reckoner Rate or Actual Transaction Value)

(i.e.) 5% (Higher of Rs 1 cr or Rs 70 lakhs)

 = 5/100 * 1 crore = Rs 5,00,000

Registration charge =1% of (Higher of Ready Reckoner Rate or Actual Transaction Value)

 (i.e.) 1% of (Higher of Rs 1 cr or Rs 70 lakhs)

 =1/100 * 1 cr = Rs 1,00,000

Transfer duty =1.5% of (Higher of Ready Reckoner Rate or Actual Transaction Value)

(i.e.) 1.5% of (Higher of Rs 1 cr or Rs 70 lakhs)

 =1.5/100 * 1 cr = Rs 1,50,000

Therefore, the amount of the stamp duty and registration charges are 7,50,000

Stamp Duty = Rs. 5,00,000

Registration Charge = Rs 1,00,000

Transfer Duty = Rs 1,50,000

Total Registration Cost = 5,00,000+1,00,000+1,50,000 = 7,50,000

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By: Shailaja K