Stamp duty and registration charges in Andhra Pradesh

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stamp duty and registration charges in Andhra Pradesh

If you are planning to buy a property in Andhra Pradesh, it is essential to know about the course of property transfer and the necessary charges involved in the registration process. It is not only imperative since property registration is mandatory by law but also for effective financial planning, particularly when one is availing a loan. Thus, here is a guide comprising all crucial details of property transfer and stamp duty and registration charges in Andhra Pradesh.

As per Section 17 of the Indian Registration Act 1908, all transactions involving the sale of immovable property should be registered in the Registrar’s Office within six months of executing the deed. The registration is essential to preserve the title of ownership and preclude unsolicited deceits in future. Besides, it also serves as proof in case one misplaces the original documents of the property. However, to register the property, the homebuyer has to pay a fee, i.e. the stamp duty and registration charge to the State’s Registration and Stamps Department. However, the fee is subject to variation as per the price and the location of the property.

How to calculate Stamp duty and registration charges in Andhra Pradesh?

The stamp duty and property registration charges in Andhra Pradesh are calculated based on either the market value or the Ready Reckoner Rate (RRR), the lowest value at which a property can be registered.

For instance, if the RRR of a particular area is Rs 4,000 per sq ft, and the market rate at which the property has been purchased is Rs 5,000 per sq ft, then the stamp duty and property registration charges can be calculated on any amount varying between Rs 4,000 per sq ft and Rs 5,000 per sq ft. 

The Ready Reckoner Rate (RRR) is the minimum value of the property fixed by the State government, whereas the market rate is the value of the property as on the date of assessment. Typically, the market value of a property is governed by several external factors such as infrastructure developments and social facilities in that area.

Furthermore, apart from the stamp duty and registration charges, transfer duty or surcharge is also levied during the registration process since it accompanies a property transfer. The fee is levied as per the provisions of the Andhra Pradesh Gram Panchayats Act, 1964 and the Andhra Pradesh Municipalities Act, 1965 and goes to the local government agencies. 

Type of Document

Registration Charges

Stamp Duty

Transfer Duty

Sale Deed

(a) Corporations

(b) Special Grade and Selection Grade Municipalities

(c) Other areas

(d) Apartments in all municipal areas and the areas covered by the Urban Development Authority (UDA)

 

(a)    1%

(b)   0.5%

(c)    0.5%

(d)   0.5%

(a)    8%

(b)   7%

(c)    6%

(d)   5%

(a)    5%

(b)   5%

(c)    5%

(d)   1.5%

Gift (by a family member)

0.5%

2%

1.5%

Exchange

0.5%

5%

1.5%

Partition

Rs 1,000

2%

Nil

Release

0.5% (subject to a minimum of Rs 1,000/- and maximum of Rs 10,000/-)

3%

Nil

For more details on registration charges and stamp duty in Andhra Pradesh, refer the official website of the State government -http://registration.ap.gov.in/CitizenServices/ACT/Registration/RegistrationFees.pdf

Let us understand the calculation of stamp duty in Andhra Pradesh along with registration fee with the help of an example below:

For instance, If Mr. A is buying an apartment worth Rs 80 lakh, then the applicable stamp duty is five percent, registration charge is 0.5 percent, and transfer duty is 1.5 percent.

Here,

Stamp duty- 80, 00,000*5/100= Rs 4 lakh

Registration charge- 80, 00,000*0.5/100= Rs 40,000

Transfer duty fee- 80, 00,000*1.5/100= Rs 1.2 lakh

So the total registration cost will be = Rs 4, 00,000 + Rs 40,000 + Rs 1, 20,000 = Rs 5.6 lakh

And, the final cost of the property will be Rs 80, 00, 000 + Rs 5, 60,000 = Rs 85.6 lakh

Essential documents required for property registration in Andhra Pradesh

    • Passport size photograph of the seller and the buyer
    • Identity cards such as voter ID or Aadhaar Card or Passport
    • A registered copy of the original sale deed
    • Recent property card from the City Survey Department)
    • Copy of utility bills
    • Copy of the authentic document specifying the sufficient payment of the stamp duty

The calculation process mentioned above will remain the same in other types of deeds as well such as gift, exchange, partition and release; however, their respective rates will change. Moreover, apart from an offline method of property registration, one can also opt for the digital mode by visiting the official website http://registration.ap.gov.in/ of the Andhra Pradesh government. The online system of property registration is not only an easier way out but also saves time and energy.

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  • Comments
  • R K Gupta May 14, 20193:37 pm

    Good article, informative.

    Thanks

    Reply
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