Stamp duty and registration charges in Gujarat 2024

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To legitimise any real estate transaction in India, the government charged registration fees and stamp duty. Aspiring homebuyers looking to purchase property in Ahmedabad, Gujarat, must be aware of the applicable stamp duty and registration rates. Continue reading to learn about the latest stamp duty and registration expenses in Ahmedabad for real estate transactions.

The twin cities of Gujarat, Ahmedabad and Gandhinagar, have undergone tremendous transformations in terms of municipal and physical development. As a result, both commercial and residential real estate in Ahmedabad have experienced a significant increase in interest from prospective property investors. If you are one of those prospective homebuyers looking to buy real estate in Ahmedabad, you should consider the stamp duty and registration taxes before concluding a contract.

Stamp duty is a tax that a property buyer must pay to the state government in order for the sale or purchase to be legal. The registration fee is paid to maintain ownership records at the registrar's office. These fees add validity to the property paperwork and protect the owner's interest in the event of a future dispute or fraud. Stamp duty costs vary by state and may be based on gender, municipal areas, or income levels within the state.

Stamp Duty and Registration Charges in Gujarat in 2024

Stamp duty in Ahmedabad is 4.9 percent, and the registration cost is one percent of the property's market price or transaction value, whichever is larger. According to the most recent updates from the State administration, female property owners are free from the registration charge. The registration fee waiver for female buyers is intended to empower women and encourage more families to register properties in the names of female family members.

Registration Charges in Gujarat in 2024

In 2023, registration fees in Gujarat will be one percent of the property's market price or transactional value. The registration fee will be levied on the higher of the two figures. The registration charges collected by the Gujarat government are as follows:

Stamp Duty in Ahmedabad, Gujarat in 2024: How to Calculate?

Stamp duty in Ahmedabad, Gujarat is calculated using circle rates, ready reckoner rates, or the property's market value. Here are the steps to compute stamp duty:

Multiply the total value of your property by the stamp duty rate (4.9 percent). The formula is: Property value X 4.9/100.

The preceding calculation will help you obtain the stamp duty applicable to your property.

Next, compute the registration fees at 1% of the property value. The formula is: property value x 1/100.

The overall cost of your property is determined by adding registration fees and stamp duty to the property's valuation. 

Note: Registration fees vary from case to case.

Stamp Duty in Ahmedabad, Gujarat in 2024: Calculation with an Example

To better understand the computation, consider two neighbouring houses in Ahmedabad of comparable value, say Rs 30 lakh, purchased by a man and a woman named Suraj (male) and Ritu (female). Here's how to determine the entire cost of property for them:

Suraj's stamp duty charges are Rs 1.47 lakh (30 lakh multiplied by 4.9/100).

Registration fee = 30 lakh x 1/100 = Rs. 30,000.

Thus, the total cost of the property for Suraj = Rs 30 lakh + Rs 1.47 lakh (Stamp duty) + Rs 30,000 (Registration fee) = Rs 31.77 lakh.

Similarly

Ritu's stamp duty payable is Rs 1.47 lakh, calculated as 30 lakh multiplied by 4.9/100.

As a woman, Ritu is excused from paying the registration cost.

As a result, Ritu's total property cost is Rs 31.47 lakh, calculated as Rs 30 lakh + Rs 1.47 lakh

Property Registration in Ahmedabad, Gujarat: Documents Required

According to the Gujarat Registration Act, unregistered immovable property is inadmissible in court. Property registration in Gujarat requires the following documents:

Input Sheet: Contains the property details with the signatures of both parties, i.e., the buyer and seller.

 If the document is covered by Section 32A of the Gujarat Stamp Act, 1958. This is necessary to determine the market worth of the property.

Identity proofs from the claiming and executing parties

Proof of ownership rights.

Original copy of the power of attorney.

Is E-stamping valid in Gujarat?

Yes, e-stamping is valid in Gujarat. Nationalised and private sector banks, co-operative banks, stamp vendors, chartered accountants, notaries, and non-banking financial companies (NBFCs) in Gujarat currently offer e-stamping services.

Stamp Duty on Conveyance Deeds in Ahmedabad in 2024

Stamp duty/dastavej rates in Ahmedabad, Gujarat vary depending on the property deed. The following is a list of the various property deeds in the city and the stamp duty rates they attract.

Offline process for paying stamp duty and registration taxes in Ahmedabad

Property buyers in Ahmedabad can pay stamp duty and registration fees in both offline and online methods. The offline process consists of two methods: franking centres and stamp papers, which are discussed below.

Offline process for paying stamp duty and registration taxes in Ahmedabad

Property buyers in Ahmedabad can pay stamp duty and registration fees in both offline and online methods. The offline process consists of two methods: franking centres and stamp papers, which are discussed below.

Franking Centre: When purchasing a house in Ahmedabad, a homebuyer can visit the nearest franking centre or a bank office to pay the stamp duty and registration taxes.

Stamp Papers: Homebuyers may also contact with an official stamp seller and buy the stamp papers to pay the stamp duty and registration charges in Ahmedabad.

Stamp duty taxes on property transfers within the family in Ahmedabad

According to the most recent Gujarat High Court decision, state revenue officials are not allowed to collect stamp duty on family property transfers. According to the decision, if the property owner transfers the property to one of their family members, Gujarat's revenue authorities cannot impose stamp duty on the transaction.

The High Court's circular stated that any ancestral property where the original buyer is no longer alive can be abandoned, and the property transfer can be completed on Rs 300 stamp paper. Furthermore, stamp duty will be waived for such a transaction. 

Implications of Not Paying Stamp Duty and Registration Charges in Ahmedabad, Gujarat

According to the Indian Stamp Act 1899 and the Registration Act 1908, a buyer must pay stamp duty and registration fees when purchasing a property. Failure to comply may result in a penalty of 200 percent of the entire shortfall amount plus two percent every month.