Stamp Duty And Registration Charges In Punjab In 2024

What is Stamp Duty?

Under Section 3 of the Indian Stamp Act 1899, every individual buying a property must pay registration and stamp duty charges to complete the property registration process. State governments levy these taxes on all kinds of property transactions, including residential properties, commercial properties, new or under-construction properties, agricultural or non-agricultural land, leasehold and freehold properties, etc.

Payment of stamp duty is mandatory as it validates the property ownership for the buyer. Consequently, they comply with the state’s legal provisions and recognise and protect their rights on the property. Since these charges vary between states, knowing them before purchasing a property in Punjab is essential.

Stamp Duty in Punjab

The state government of Punjab collect 1% registration charges and 7% stamp duty charges on each property transaction. The stamp duty charges include 1% for funding water supply, 1% for the state's Infrastructure Development Board and programs for environmental improvement. Remember, the applicable costs vary between states, depending on the area's circle rate.

Circle rate is the minimum rate at which a property can be legally registered. Here are a few factors that affect the stamp duty in Punjab:

• Property Type: Stamp duty charges are higher for commercial properties than for residential properties.
• Buyer’s Gender: The rates are higher for males than females to encourage female ownership in the state.
• Property Location: Charges are higher in urban cities than in rural areas.
• Amenities: Properties with high-end amenities have higher stamp duty charges.

Stamp Duty and Registration Charges before April 30, 2023

The Punjab government offered a stamp duty rebate of 2.25% before April 30, 2023. Since the applicable charges vary by the property ownership type, here is a look at the stamp duty and registry charges in Punjab before the specified date:

Stamp Duty And Registration Charges After April 30, 2023

The Punjab government offered a 2.25% rebate till April 30, 2023 only and did not extend it after that date. So, below are the revised Punjab property registration and stamp duty charges:

Stamp Duty and Registration Charges in Punjab

The Punjab government announced a 2.25% exemption on property registration in Punjab. After that, the rates will again fall in the 2.75 to 4.75% range. Both male and female homebuyers are eligible for the rebate. The current charges for home ownership in Punjab are as follows:

What is the Stamp Duty for Female Home Buyers in Punjab?

Female homebuyers are eligible for lower registry charges in Punjab. The discounted charges for women encourage female home ownership in the state. While the Punjab property registry charges remain the same at 1% for all types of owners, the stamp duty charges for females are as follows:

How to Calculate Stamp Duty in Punjab?

The formula to calculate stamp duty in Punjab is as follows:

Stamp Duty = 5% of the consideration value + 1% of SIC (Social Infrastructure Cess) + 1% of the consideration value (PIDB)

If a property gets transferred within a family, the stamp duty charges will be Rs 900, including Rs 300 mutation fee, Rs 500 facilitation fee, and Rs 100 pasting fee. However, no stamp duty is chargeable if the property gets transferred within a blood relation. However, the registration charges will apply.

The applicable stamp duty on property registration in Punjab depends on the property’s circle rate or the consideration value, whichever is higher. Consideration value is the amount that both the seller and the buyer agree to for the transaction. Since the rate of stamp duty charges varies by state, using an online calculator for Punjab is advisable. It will also give a better idea of the Loan Against Property amount one can borrow against the property.

How to Make Online Payments of Stamp Duty and Registration Fees?

The Punjab government allows homebuyers to pay their home and land registration fees in Punjab online through the official website of Stock Holding Corporation of India Limited (SHCIL). It is the authorised agency for e-stamping. These are the steps to follow:

• Visit SHCIL’s official website

• Browse through the given options and select ‘e-stamping’.

• Select your state ‘Punjab’ from the drop-down list of Indian states.

• Fill in the application form with the necessary details

• Click on ‘Download’.

• Print this form and take it to the nearest SHCIL branch.

• Pay at the branch using cash, cheque, RTGS, NEFT, demand draft, or account transfer.

• The office will generate a certificate of e-stamp necessary for property registration in Punjab at the registry office.

Offline Payment Procedure of Stamp Duty in Punjab

For offline payment of stamp duty in Punjab, the homebuyer must visit the CRA (Central Record Keeping Agency) or ACC (Authorised Collection Centre) to fill out an e-stamping form. The branch will generate an e-stamp certificate after receiving the stamp duty charges in cash, card, cheque, or RTGS/NEFT.

Things to Consider Before Paying Stamp Duty in Punjab

Before paying the property registry charges in Punjab, consider these pointers:

• All assets eligible for stamp duty should be stamped before property registration in Punjab.

• Stamp papers should be in the name of the person involved in the property transaction.

• Franking is a popular method of paying home registry charges in Punjab. However, a franking agent, such as a financial institution, will be necessary. For franking, the buyer must print the property transaction details and submit them to the financial institution with registry and stamp duty charges. The financial institution will use a franking machine to stamp the agreement.

• For successful payment of stamp duty, ensure the stamp paper's date does not exceed six months from the transaction date.

Conclusion

The real estate market of Punjab has seen immense growth over the last few years. So, prospective homebuyers must know Punjab's recent stamp duty and registry charges to complete their property ownership. While registration charges are fixed at 1%, the stamp duty charges vary based on the owner's gender. If buying a property on loan, use a mortgage loan EMI calculator to finance a large part of the purchase and opt for a repayment plan suitable to the buyer’s monthly budget.

Frequently Asked Questions

1. What are registry charges in Punjab?

Every home buyer must pay registration and stamp duty charges in Punjab to get the property's full ownership. In Punjab, the charges vary based on the buyer’s gender, ranging from 5% for women and 7% for men. The registration charges remain the same at 1%.

2. How are registry charges calculated in Punjab?

The registry charges remain the same for all property transactions, i.e. 1% of the property’s price.

3. Who is responsible for paying registry charges, the buyer or the seller?

The buyer is responsible for paying the applicable registry charges.

4. Are registry charges the same for all types of properties in Punjab?

Yes, the registry charges for all types of properties are the same in Punjab, fixed at 1%.

5. What documents are required for the registration of property in Punjab?

Ownership proof, allotment letter, NOC, registry, identity proofs, and passport-sized photographs are a few documents required for property registration in Punjab.