Buying a home is a landmark event in any person’s life not just because it requires serious financial commitment but also because many emotions are associated with it.
The entire process of locating that dream home, completing legal verification, managing the down payment, arranging a bank loan, signing the sale deed, and finally taking possession of the property can drain you physically & emotionally.
But before you take possession and gear up for the housewarming ceremony, there is something fundamental that you cannot forget. You must ensure that the property is registered in your name to assert your legal ownership. On registration, your name enters the local municipal records as the legal owner of the property.
Along with registration charges, you must also pay stamp duty to complete the regulatory formalities. The stamp duty and registration charges in pune city are payable to the Government of Maharashtra.
What is Stamp Duty? Why should you pay for it?
Stamp duty is a tax you must pay the state government for the property transaction undertaken. It is calculated on the guidance value of the property at the time of registration. In a way, it authenticates the transaction and establishes your legal ownership over the property. Registration charges and stamp duty form a significant part of any state government’s revenue.
Stamp duty is payable under Section 3 of the Indian Stamp Act. The buyer generally pays it. In the case of an exchange of property, the payment is shared equally between the two parties. It must be paid fully on time, i.e., at the time of registration. Any delay in payment attracts penalty charges ranging from 2% per month to 200% of duty liability.
Stamp duty is a state levy, and the actual rate varies from state to state. If you are buying property in Pune, please note that the state government has increased the rate by 1% w.e.f April 1, 2022. This additional levy in Pune is charged as metro cess for building transport infrastructure in the city.
So home buyers will now have to shell out 7% of the property’s value towards stamp duty in Pune city. But the state government has also announced a 1% rebate in stamp duty for all women home buyers. This rebate is exclusively for women and not available for joint property owners (male & female).
Details of Registration Charges & Stamp Duty Rates in Pune
| Stamp Duty Rates (Men) | Stamp Duty Rates (Women) | Registration Charges |
| Stamp Duty = 5% | Stamp Duty = 4% | Rs.30,000 for Properties above Rs.30 Lakh |
| Metro Cess = 1% | Metro Cess = 1% | |
| Local Body Tax = 1% | Local Body Tax = 1% | 1% of Property Value for Properties below Rs.30 Lakh |
| Total = 7% | Total = 6% |
The registration charges and stamp duty in Pune are calculated based on the Ready Reckoner Rate (RRR). It is the value of an immovable property fixed by the Maharashtra government for levying charges. Specific minimum rates are fixed to prevent the undervaluation of properties and subsequent evasion of charges payable to the government.
E.g., If you purchase a property in Pune worth Rs.80 Lakh whose Ready Reckoner Rate is Rs.70 Lakh, you are required to pay:
Total Stamp Duty @ 7% of RRR = Rs.4.90 Lakh
Registration Charges = Rs. 30,000
Total Amount Payable = Rs.5.20 Lakh
Factors Determining the Ready Reckoner Rate (RRR)
Various factors govern the fixing of the Ready Reckoner Rate in Pune (2022):
- Property Location
- Property Type (Commercial/Residential/Agricultural etc)
- Age of the Property/Building
- Facilities available in & around the property
- Market Value of the Property
Latest Ready Reckoner Rate for Property Types in Pune
| Property Type | Current RRR (Per Sq. Mtr) |
| Apartments & Flats | Rs.8,010 – Rs.1,47,730 |
| Residential Land | Rs.1,330 – Rs.91,960 |
| Office Space | Rs.36,980 – Rs.1,98,350 |
| Shops | Rs.41,530 – Rs.1,11,600 |
Calculation of Property Value with Ready Reckoner Rate in Pune
Value of Property = Ready Reckoner Rate (Rs/sq.Mtr) * Built Up Area (Sq.Mtr)
If you buy an apartment of 300 square meters in size and the RRR is Rs.25,000, the property’s value is 25,000 * 300 = Rs.75 Lakh.
The stamp duty and registration charges in pune shall be calculated based on this value. The buyer has to pay these charges to the state government for registering the property in his/her name.
Online Payment of Stamp Duty
Property buyers can now pay registration charges & stamp duty online on the Government Receipt Accounting System (GRAS) website:
Step 1: Visit the Official Website https://gras.mahakosh.gov.in/
Step 2: After registering yourself, provide all the details related to the property
Step 3: The system calculates the amount payable based on the details provided. You can make the payment using a credit/debit card or net banking
Step 4: Once the payment is successfully processed, a receipt is generated online. Take a printout of the same and book an appointment at the Sub-registrar’s office
You can also use other payment methods like physical stamp paper, E-stamping, and Franking.
Note:
- The registration charges and stamp duty are not included in the home loan sanctioned by banks. You can, however, avail of a separate personal loan if you need money.
- Paying stamp duty is a regulatory requirement when you buy a property. Avoidance or duty evasion can attract stiff penalties and lead to imprisonment of up to a year.
- Ready Reckoner Pune gives the minimum rates notified by the Maharashtra government for property valuation in Pune city.
- Registration charges & stamp duty can be claimed as deduction u/s 80C of Income Tax Act up to a maximum limit of Rs.150,000
Conclusion
The arduous process of buying your dream home is not complete until the property enters the government records and establishes you as its legal owner. Notwithstanding the hassles, you must get this done by paying all the charges, as it protects your title to the property in the event of any conflict. Paying stamp duty is a small price to pay to safeguard your valuable interests.
