Registration & Stamp Duty charge on property purchase in Hyderabad

Hyderabad is one of the most active residential markets in recent times. With competitive property prices, renowned real estate builders and robust infrastructure, the pricing on real estate in Hyderabad are still comparatively on a budget as compared to other metropolitan cities.  Moreover, with increased commercial activity in the city, there has been a substantial surge in the residential market. According to a report on the Hyderabad real estate market in 2018, there has been a total of 750 new projects in the city, where the majority development has been in apartments (54%), plots (39%) and villas (7%). However, the maximum residential activity is happening in the suburban localities of Hyderabad like Gopanpally, Serilingampally, Tellapur, Chandanagar-Miyapur, Kokapet, Manikonda, Rajendranagar, and Nizampet. These areas are in close vicinity to the major IT hubs – Gachibowli, Hitech City and Madhapur. Over 8000 residential units were sold alone in the first 6 months of 2018, it has been a record rise of 30% against the same time period in the preceding year.

Considering these factors, the locals, as well as the NRIs, are seeing Hyderabad as a potential city to buy a property or settle down. However, when you are looking to buy a property in a certain city, there are some mandatory additional expenses like the stamp duty and the registration charge. So, it is important that you also know the registration charges and stamp duty on a bought property as it is levied by the State Government and varies from one state to another.

Today, let us know the rates of the stamp duty and registration charge on a property in Hyderabad and understand its calculation.

What is Stamp Duty?

Stamp Duty is a charge that you must pay to get the property transferred from one person to another. The charge is based on the total valued price of the property and varies from state to state.

Factors that determine the Stamp Duty in Hyderabad

  • Age of the property
  • Location of the property
  • Nature of property
  • Age of the owner of the property
  • Gender of the property owner
  • Amenities within the property

What is Registration Charge?

It is a one-time fee that you need to pay the Government to get the property transaction registered in the Government records.

Documents to be submitted for flat registration in Hyderabad

Here is a list of documents required to register a property in Hyderabad:

  • ID proof (PAN card, Aadhaar card, Driving licence, Passport, etc., from both the parties – buyer & seller)
  • Receipt or DD that is a proof of payment for stamp duty, transfer duty and registration charges
  • Section 32A form of claimants / witnesses / executants
  • ID cards and photos of two credible witnesses
  • A photograph holding the frontal view of the property
  • GPA/SPA documents

The original copies of these documents must be submitted with the signatures of the respective parties.

Stamp Duty and Registration charge in Hyderabad

Below we have mentioned the Registration Charge and Stamp Duty levied on the property prices in Hyderabad (based on the locality administrative division and type of properties)

Corporations and Municipalities:

Type of FeeAmount payable
Registration Charge0.5% of the property value
Stamp Duty4% of the property value
Transfer Duty1.5% of the property value
Stamp & Transfer Duty payable onMV (market value) or consideration, whichever is higher

Other Areas:

Type of FeeAmount payable
Registration Charge0.5% of the property value
Stamp Duty4% of the property value
Transfer Duty1.5% of the property value

Apartments and Flats:

Type of FeeAmount payable
Registration Charge0.5% of the property value
Stamp Duty4% of the property value
Transfer Duty1.5% of the property value
Mutation Charge0.1% of the property value  

Sale Agreement and GPA:

Type of FeeAmount payable
Registration ChargeRs.20,000/-
Stamp Duty5% of the property value
Transfer Duty0% of the property value

Sale Agreement with/without possession:

Type of FeeAmount payable (with possession)Amount payable (without possession)
Registration Charge0.5% (minimum of Rs.1,000 and maximum of Rs.20,000)0.5% (minimum of Rs.1,000 and maximum of Rs.20,000)
Stamp Duty4% of the property value0.5% of the property value
Transfer Duty0% of the property value0% of the property value

Calculation of Stamp Duty and Registration Charges in Hyderabad (explained in simple steps)

Let us assume that an apartment (in and around Gachibowli) costs Rs. 5000 per square feet (sft)

Mr Vijay has bought a 2 BHK 1000 sft apartment (at Rs.5000 per sft); so the price valuation of the property is

Rs. 5000*1000 sft = Rs. 50,00,000

Now, the 4% stamp duty will be charged on the guidance value of the property (considering it is a municipal property)

P.S., Guidance Value is the minimum value set by the Government below which the property cannot be registered.

With 4% stamp duty being levied on a Rs. 50,00,000 property, the amount payable is

4% of Rs. 50,00,000 = Rs. 2,00,000

Registration charge 0.5% of the saleable value; so the amount payable is

0.5% of Rs. 50,00,000 = Rs. 25,000

Transfer Duty 1.5% of property value; so the amount payable is

1.5% of Rs. 50,00,000 = Rs. 75,000

Mutation charge 0.1% of property value; so the amount payable is

0.1% of Rs. 50,00,000 = Rs. 5000

Therefore, the total amount payable on Stamp Duty and Registration Charge is

Rs. 2,00,000 + Rs. 25,000 + Rs. 75,000 + Rs. 5000 = Rs. 3,05,000

So, Mr Vijay needs to pay a total amount of Rs. 50,00,000 + Rs. 3,05,000 = Rs. 53,05,000 to get the ownership and register the property in his name.

However, it depends on the disposal of the State Government and they might change the rates of the Stamp duty and the Registration charge from time to time.

The demand for properties in Hyderabad close to the IT sectors is on a constant rise. Real Estate builders are cashing in on the demands of the buyers and offering them gated community apartments with 2 & 3 bhk luxury flats. One such project is Honer Vivantis by Honer Homes, a luxury gated community apartment for sale in Gopanpally, Gachibowli.

You can also visit Honer Homes page to know more about the project and subscribe to our blog page to get updates of property buying guides and more insights into the real estate market.

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