Registration & Stamp Duty Charges On Buying Property in Punjab

The real estate sector in Punjab is growing rapidly, and with this growth, the need to understand the various charges that come with buying or selling property has become more critical than ever. One such charge is Stamp Duty and Registration Fees, which the government of Punjab levies. In this blog, we’ll cover everything you need to know before buying property in Punjab. 

A Brief Overview Of The Various Taxes

What is Stamp Duty?

Stamp Duty in Punjab refers to the tax imposed as property transactions to fund various development programs. The Punjab government collects 7% as stamp duty charges, which includes 1% to fund water supply and environmental improvement programs and 1% for the Punjab Infrastructure Development Board.

What is Registration Charge?

Registration Fees refer to the fee charged by the government for registering a property transaction. The government collects 1% as registration charges and stamp duty charges. The stamp duty and registration charges differ for each state.

How are Stamp Duty and Registration Charges Calculated?

In Punjab, the calculation of stamp duty and registration charges involves taking into account various factors such as the consideration value of the property and the type of transaction (e.g., family exchange or blood relation transfer).

For example, let’s say the market value of a property is Rs. 50 lakhs, and the consideration value agreed between the two parties is Rs. 55 lakhs. The stamp duty calculation would be:

1.  5% of the higher value (Rs. 55 lakhs) = Rs. 2.75 lakhs
2.  1% SIC (Rs. 55 lakhs) = Rs. 0.55 lakhs
3.  1% PIDB (Rs. 55 lakhs) = Rs. 0.55 lakhs.
4.  Hence, the total stamp duty payable in this case would be Rs. 3.85 lakhs.

In case of a family exchange, the stamp duty payable would be a fixed amount of Rs. 900. However, the registration fee would remain 1% of the consideration value.

GST on stamp duty and registration charges

Stamp duty and registration charges do not fall the under the purview of the goods and services tax. Hence, you don’t need to worry about paying GST on property transactions.

List Of Registration and Stamp Duty Charges 2022-23

Gender	Stamp Duty	Registration Charges
Male	7%	1%
Female	6%	1%
Joint (Male + Male)	7%	1%
Joint (Male + Female)	6%	1%
Joint (Female + Female)	5%	1%

Document wise detail of Stamp Duty and Registration Fee

Deed Name	Stamp Duty in Punjab	Registration Fee
Sale/ Gift	5% of the Consideration amount + 1 % of SIC (Social Infrastructure Cess)	1 % of the Consideration amount (Max. Rs. 2 lac )
Transfer of property	Nil	Nil
General Power of Attorney (upto 5 people)	Rs. 2000/-	Rs. 400/-
General Power of Attorney (more than 5 people)	Rs. 4000/-	Rs. 400/-
Special Power of Attorney	Rs.1000/-	Rs.100/-
Cancellation of GPA	Rs.1000/-	Rs.100/-
Cancellation of SPA	Rs.500/-	Rs 100/-
Mortgage Deed (without Possession)	4% of the Consideration amount	1 % of the Consideration amount (Max. Rs. 2 lac )
Mortgage Deed (with Possession)	4% of the Consideration amount	1 % of the Consideration amount (Max. Rs. 2 lac )

How to pay Stamp Duty and Registration Fees on property in Punjab?

You can refer to the following steps to pay the charges online:

1. Go to the official website of Stock Holding Portal: https://www.stockholding.com/estamp-index.html.
2. Select “e-stamping (E stamp Punjab)”.
3. Choose “Punjab” from the state drop-down list.
4. Fill out the application form with the required details and click the “Download” tab.
5. Take the form to the nearest SHCIL branch in your city.
6. Make the payment using your desired method.
7. Get an e-stamp certificate and go to the registry office for property registration.
8. Keep the printout of the receipt for future reference.

Payment Of Stamp Duty at an authorized collection center:

To pay stamp duty and registration fees offline in Punjab:

1. Visit an Authorized Collection Centre (ACC) or Central Record Keeping Agency (CRA).
2. Fill out the e-stamping form.
3. Make payment using cash, cheque, NEFT/ RTGS, debit, or credit card.
4. Collect the e-stamp certificate from the branch.

Tax Exemptions On Stamp Duty And Registration Fees

• A home buyer can get tax benefits up to Rs 1,50,000 under section 80C of the Income Tax Act, 1961.
• You can avail of benefits in a year when the buyer pays for the registration fee and stamp duty.
• The benefits are applicable for residential property only.
• You can avail of benefits on co-jointly owned properties too.

If the property is transferred within five years, the home buyer has to pay taxes in the next assessment year.

Frequently Asked Questions