Land Registry: Acquiring legal ownership of a property such as a house, shop, plot, or land is contingent upon its registration in your name. However, this registration process typically incurs an additional cost amounting to 5 to 7 percent of the property’s value. Hence, people seek methods to economise on these registry expenses.
Let’s say you purchase a property valued at Rs 50 lakh; in such cases, the registration cost can range between two and a half to three lakh rupees. Nevertheless, there exist certain strategies to significantly reduce these expenses during the registry process. Here, we will outline these methods for your benefit.
Tips to save money on Land Registry
Stamp duty
To reduce your stamp duty expenses, consider the scenario where a property‘s market value is lower than the circle rate, which is often the case. In such instances, you might end up paying higher stamp duty during registration based on the circle rate. However, by appealing to the Registrar or Sub-Registrar to assess stamp duty according to the market value, you can potentially save on these costs. The State Stamp Act allows for such appeals, and the sale deed will remain pending until registration, offering you a way to economize on stamp duty expenses.
Woman buyers
Women buyers can benefit from discounts in several states, where stamp duty and registration fees are waived when a woman is involved in a property purchase, either jointly or individually. States like Haryana, Delhi, Punjab, Rajasthan, and Uttar Pradesh implement these exemptions. In Delhi, for instance, if a property is registered in a man’s name, a 6 percent registration charge applies, whereas registering it in a woman’s name incurs only a 4 percent charge. This can translate to potential annual savings of up to Rs 1.5 lakh on residential property registration expenses.
Local Stamp Act
You can save money through local Stamp Acts. Income generated from property registration contributes to the state’s revenue. Frequently, state governments offer discounts on registration fees. Therefore, timing your registration during these discount periods can result in significant savings. In states such as Maharashtra, Punjab, and Uttar Pradesh, stamp duty is waived when gifting property to a blood relative. However, it’s crucial to be aware that rules may vary in different states, so it’s advisable to acquaint yourself with your state’s Stamp Act before proceeding with registration.
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