Property registration and paying stamp duty charges under Section 3 of the Registration Act, 1908 are integral to buying your property. In this blog, we will delve into the stamp duty and registration charges in Kerala and give you a ready reckoner of all the things you need to keep a watch for.
Table of Contents
What is Stamp Duty in Kerala?
Stamp duty or tax is a legal fee that a property buyer pays to the sub-registrar as part of validating the sales agreement. This fee is decided by the state governments. The registration charge is paid by the property buyer to register the property under his/her name in the government records.
While the stamp duty in Kerala is 8% on fair value for properties owned by men, women, or joint property, the registration charges stand at 2%.
Stamp Duty and Registration Charges in Kerala
| Gender | Stamp duty rates | Registration charges |
| Female | 8% | 2% |
| Male | 8% | 2% |
| Joint (Male + Female) | 8% | 2% |
| Joint (Male + Male) | 8% | 2% |
| Joint (Female + Female) | 8% | 2% |
Both men and women in Kerala must pay the same charges for stamp duty and registration. In states like Haryana, Maharashtra, Odisha, etc., women property owners are eligible to pay lesser stamp duty and registration than their male counterparts. Stamp duty and the registration fee are charged on either the consideration value or fair value, whichever is higher. As per the Income Tax Act, 1961, fair value is the price that an asset ideally sells for in the open market on a certain date. Consideration value is any amount paid for the property excluding the Value Added Tax (VAT).
How to Calculate Registration Charges and Stamp Duty in Kerala?
Now, let’s understand how these charges are calculated with an example.
Let’s assume you have a property that is valued at Rs. 1 crore. Stamp duty is 8% of Rs 1 crore, which is Rs. 8 lakhs. Registration charges will be 2% of Rs. 1 crore which is Rs. 2 lakhs. Add Rs. 8 lakh and Rs. 2 lakh, and we get Rs. 10 lakh that will go towards stamp duty and registration of property in Kerala.
Factors Affecting the Stamp Duty in Kerala
Stamp duty charges are affected by three main factors: the age of the buyer, usage of property, and the location of the property.
Buyer’s Age: Many state governments do offer senior citizens a discount on stamp duty charges. However, Kerala is not one of them as of now but there is a good chance that it soon may be.
Use of Property: Stamp duty has a direct effect depending on the use of the property. For commercial and residential properties, the stamp duties are different.
Location of Property: Different locations could attract different stamp duty charges within the same city.
Points to Remember before Paying Stamp Duty in Kerala
There are pertinent points that need to be considered before you pay stamp duty charges in Kerala, and they are:
- The date of the stamp paper issued to you must not be over 6 months from the transaction date.
- All applicable assets for stamp duty must be stamped before registration or the following working day.
- Stamp paper must be under the name of individuals involved in the transaction.
- The adhesive stamp removed at the time of execution cannot be reused.
Tax Benefits on Stamp Duty in Kerala
According to section 80C of the Income Tax Act, if you are a new homebuyer you can claim up to
Rs. 1.5 lakh tax deduction on stamp duty and registration charges. This deduction is only applicable on new properties and not on residential plots, property resale, or commercial properties.
Documents Required for Property Registration in Kerala
Below is the list of all the documents you would require while registering your property in Kerala.
- Sale deed
- Assessment of MC or mutation
- Ration Card/Voter ID/Driving License
- Aadhaar Card/PAN Card
- No objection certificates
- ID proof of two witnesses
- Map plan and description
- Photograph of property
How to Process the Land Registration in Kerala and Stamp Duty Payment (Online Process)
You could visit the registrar’s office, fill in your form, and make the payment to register your property. Or you could go online and do the same, thanks to the ever-evolving technological advancements. To do it online, here are the steps you need to follow:
Step 1: Go to the registration department website by the Government of Kerala and click on the ‘online applications’ option.
Step 2: Enter all the information such as name, district etc., and then hit the Submit button.
Step 3: Once the login process is complete, search for ‘Available Token’ under Online Token Registration. Choose a convenient time slot for the document submission at the sub registrar’s office.
Step 4: Fill in the mandatory fields and click on ‘View Token’. You will now see all the available slots to choose from.
Step 5: In the new window, choose the transaction type and click on the ‘Submit’ button. For payment of above Rs. 1 lakh, choose e-stamp as the payment form.
Step 6: Enter ‘Claimant’ and ‘Executants’ details, property and building information.
Step 7: Complete the process of self-verification and apply the e-stamp.
Step 8: Click on ‘Continue to pay’ and tap on the ‘online payment option’.
Step 9: Select ‘Stamp duty + Enrollment Fee’ and continue with the transaction. Secure your transaction ID and verify your contact details.
Step 10: To access the e-stamp, click on ‘view details.’ Serial number and GRN will be printed on the e-stamp that is generated.
Step 11: Set the time slot to submit the documents at the sub-registrar’s office.
Step 12: Reach the office to submit the documents on that day and time.
Conclusion
Paying stamp duty and registration charges is an essential part of buying property. The stamp duty is 8% and the registration charge is 2% of the property value, for men, women, and joint ownership of the property.
What are the stamp duty and registration charges in Kerala?
The stamp duty is 8% and the registration charge is 2% of the property value, for men, women, and joint ownership of the property.
Which department regulates the registration process in Kerala?
The Registration Department of Kerala regulates the registration process.
Is paying registration fees and stamp duty in Kerala mandatory?
Yes. This is a mandatory step as per the Registration Act and Indian Stamp Duty Act whenever there is a property transaction involved.
How do I register property in Kerala?
You can visit the website of the Registration department of Kerala and follow the steps mentioned in the blog to successfully register the property online. Else, you could also visit the registrar’s office to do the same.
Do I need to upload any document during the land registration process?
You need to upload a couple of passport-size photographs, a copy of your PAN Card, a plan of the property, witnesses’ ID proofs, NOC, Sale deed, etc.
Does the bank lend money for the stamp duty charges?
Bank loans cannot be availed to pay stamp duty and registration charges. However, you could opt for other loan schemes that cater to these requirements.
