Buying a home in Thane? As a homebuyer, you need to factor in stamp duty and registration charges that are applicable in the city. Understanding these charges and planning for them in your home buying budget will ensure there are no surprises later.
What is Stamp Duty?
Stamp duty is a tax levied on legal documents as per the Maharashtra Stamp Act. When you purchase a property, you need to pay stamp duty on the purchase agreement between the buyer and seller.
The stamp duty is calculated as a percentage of the market value of the property. This percentage varies based on the location of the property.
In Thane, the stamp duty is 5% for properties within Municipal Corporation limits and 4% for properties in gram panchayat areas. This needs to be paid before registering the property.
What are the Registration Charges?
Registration charges are the fees you pay to register the sale deed of the property. This involves submitting the deed with the sub-registrar office and formally registering the transfer of ownership.
The registration charges in Thane are 1% of the market value of the property. This is over and above the stamp duty charges.
There are also additional expenses such as documentation charges and lawyer fees that homebuyers need to account for in the registration process.
How are Stamp Duty and Registration Calculated?
Let’s understand this with an example.
Say you purchase a property worth Rs. 1 crore in Thane Municipal Corporation limits.
* The stamp duty at 5% will be – Rs. 1 crore x 5% = Rs. 5 lakhs
* The registration charges at 1% will be – Rs. 1 crore x 1% = Rs. 1 lakh
So the total charges you need to pay are Rs. 5 lakhs + Rs. 1 lakh = Rs. 6 lakhs.
This is the additional cost you should factor in while budgeting for your home purchase.
What Documents Need Stamping and Registration?
The main documents that require stamp duty payment and registration are:
– Sale deed – This is the main legal document that transfers ownership of the property from the seller to the buyer.
– Loan agreements – If you are taking a home loan, the agreement between you and the bank needs to be stamped and registered.
– Power of attorney – If you appoint a person to handle property matters on your behalf, this document needs stamping and registration.
– Development agreements – If there is any development agreement between the builder and homebuyer, it requires registration.
– Lease deed – Incase you wish to lease out the property, the lease agreement needs to be stamped and registered.
Ensure all these documents are properly stamped with applicable duties paid before registration.
How to Save on Stamp Duty and Registration Charges?
Here are some tips to save on stamp duty registration charges thane:
– Opt for a resale property instead of under-construction property as it attracts lower stamp duty.
– For women buyers, there is a 1% concession on stamp duty registration charges thane.
– Consider registering only the sale deed first to lower initial charges. Registration of other documents can be done later.
– Avoid inclusive deals offered by builders where stamp duty and registration are included in the price. It often results in higher overall cost.
– Time the purchase right to take advantage of any temporary stamp duty reductions or exemptions if announced by the government.
Stamp duty and registration contribute significantly to the home buying cost in Thane. Plan your finances carefully keeping these charges in mind. Utilize available exemptions and concessions to reduce the costs. This will help you make a well-informed property purchase decision in Thane.