Stamp Duty And Registration Charges in Kerala 2024

Buying property in Kerala requires understanding the critical aspects of registration fees and stamp duty. It is vital for validating property ownership and ensuring a smooth transaction. Navigating the complexities of property registration can be challenging for both seasoned investors and first-time homebuyers. However, being well-informed about the process, associated costs, and legalities can help you avoid pitfalls and make more confident decisions. This blog offers you an in-depth overview of registration fee and stamp duty in Kerala.

Read on to learn the importance of property or land registration charges in Kerala for a real estate purchase. Gain insights into handling the property registration procedure successfully.

How to Pay Stamp Duty And Registration Charges in Kerala

According to the Registration Act 1905, to become the legal owner of a property in Kerala, buyers must register it after purchasing by paying the appropriate stamp duty and registration charges. The Kerala register department accepts stamp duty charges from property owners. First, we need to prepare our documents to pay stamp duty for agreement in Kerala. You must buy Kerala stamp paper based on the property’s value. And take these actions to pay these fees online:

1. Create an account by going to Kerala’s official registration portal.
2. After logging in, choose “Doc Registration” and fill out the necessary fields.
3. Select the transaction you want, then provide witness information and property data.
4. After making your payment, print the acknowledgement slip for your records.

When to Pay Stamp Duty And Registration Charges

You must pay the stamp duty and registration charges when registering for a property transaction. This usually occurs at the Sub-Registrar’s Office when executing the sale deed or any other property related document. You need a valid stamp paper Kerala government provides for property registration. Here are the key points regarding when to pay these charges:

Payment Timing

• Before Registration: The stamp duty must be paid before registering the property document. The document must bear the stamp duty to be considered valid.
• At the Time of Registration: Registration charges are generally paid when registering the document at the Sub-Registrar’s Office.

Methods of Payment

• E-Stamping: Stamp duty charges in Kerala can be paid through e-stamping, a more convenient and secure method.
• Demand Draft or Challan: Stamp duty and registration charges can also be paid via a bank demand draft or government challan.

Penalty for Delayed Payment

• If the stamp duty is not paid on time, penalties and interest charges may apply as per the Indian Stamp Act.

Documentation Requirements

• Ensure all property-related documents are correctly stamped with the correct amount of duty and are submitted along with the registration fee at the time of registration.

Current Rates

• Stamp duty rates and registration charges may vary, so checking the current rates applicable in Kerala before proceeding with the transaction is advisable.
• Paying the stamp duty and registration charges on time is crucial to ensure the property transaction’s legality and avoid future disputes.

How to Calculate Stamp Duty Value of Property 

There is no distinction in the stamp duty value of property here; both men and women must pay equal charges based on the property they own. It is also important to remember that stamp duty and registration charges for flats in Kerala are based on the consideration or fair value, whichever is higher. How to decide stamp paper value? You may be perplexed by it.

To quell your concerns, consider this example: stamp duty and registration fees would be paid on the higher sum if the properties’ consideration value was 40 lakh and their fair market value was 50 lakh. Let’s now examine how to find stamp duty value of property:

• The property has a fair worth of 50 lakh.
• Stamp duty: 4 lakh (8% of 50 lakh).
• Registration fees: 1 lakh (2% of 50 lakh).
• The entire amount owed for stamp duty and registration fees is 5 lakh.

Below is a simple breakdown of the land registration fee Kerala government levies on property transactions. For a typical property sale, the charges are calculated as a percentage of the property’s sale value:

• Stamp Duty – 8%
• Registration Fee – 2%
• Total Charges – 10% of the property value

Note: Property registration costs depend on property type and guideline value. Property or land rate in Kerala may vary over time and be influenced by factors such as location, market trends, development and appreciation. Stamp duty depends on the guideline value Kerala government sets for each area. But, land rate can often vary from the original guideline value as well. It is vital to keep yourself informed about the latest charges and authorities by checking with local authorities and associating with trusted real estate partners.

Documents Required For Stamp Duty And Registration of Property

The primary documents that you need for the registration of the property are:

• Sale agreement, MC evaluation, or modification
• Identification cards such as PAN, Aadhaar, Ration card, Voter, and Driver’s licence
• Certificates of no objection
• Identification of witnesses
• Map, description, and photos of the property

Factors Affecting The Value of Stamp Duty in Kerala

The factors that affect the value of stamp duty in Kerala are:

• Buyer’s age: Kerala does not now provide senior citizens with a discount, but, in the future, the government may reduce prices for these individuals.
• Use of property: Stamp duty and registration fees for residential and commercial property may differ. Fees for commercial real estate are often greater.
• Property location: Stamp duty may differ depending on the location of each property.

 Advantages of Stamp Duty in Kerala

Paying stamp duty and registration charges in Kerala can offer tax benefits:

• Section 80C: During the purchase year, you can claim up to 1.5 lakhs in stamp duty and registration expenses under Section 80C of the Income Tax Act.
• Home loan deduction: For under-construction properties, claim a tax deduction for stamp duty and registration costs in five equal instalments beginning with the completion year or possession date.
• First-time home buyers: They can claim an additional tax deduction on home loan interest, stamp duty, and registration expenses.

Stamp Duty Value For Residential And Commercial Property

Two main factors are there to determine what is stamp duty value of property and how it is utilised. Residential and commercial property have a significant difference in value when it comes to property utilisation. When compared to residential property, commercial property often has a higher stamp duty value. Unlike some jurisdictions with variable registration rates, Kerala charges a flat registration fee of 2% of the property’s value, making registration costs simple to calculate.

Recent Changes And Updates

In 2024, Kerala made no substantial changes to Stamp Duty Kerala 2024 or Registration Charges Kerala 2024. Kerala stamp paper value remains at 8%, with registration expenses at 2%. However, minor alterations may occur in response to government policy revisions, particularly in specific locations or for certain populations. So, if you’re wondering how much is the current land registration fees in Kerala, verifying these charges with your local authorities is essential.

The Kerala government may regularly evaluate and amend stamp duty and registration fees, particularly in light of changing economic conditions. Any additional announcements establishing exclusions or special reliefs for groups such as women, senior citizens, and first-time homeowners will be reflected in revised state policies.

Conclusion

In closing, understanding the registration fee and stamp duty in Kerala is important for a smooth property registration process. By familiarising yourself with the calculation methods, payment procedures, and required documents, you can avoid potential penalties and ensure a trouble-free transaction. With Kerala registration fees at 2% and stamp duty rates at 8% of property value, it’s essential to prioritise transparency, accuracy, and timeliness.

Whether you’re a homebuyer or investor, staying informed about the property registration charges in Kerala will empower you to make confident decisions and secure your dream property. Keep an eye out for more insightful tutorials and to expand your knowledge base by joining the Confident Group.