Madhya Pradesh is one of the highest earning states in India in terms of stamp duty and registration charges. When you buy a home or property, certain costs are hidden in the property’s final selling price. Two State institutions levy these charges, MP’s Registration and stamp department. Many factors are taken into account when finalising Stamp duty and registration charges. This institution is also responsible for collecting large amounts of revenue. A stamp duty’s function is to record the owner’s name with the property’s market. This process provides safety from illegal activities, disputes and trespassing.
During the pandemic, the state government reduced the stamp duty charge by 2%. In addition, MP’s registration and stamp department feature four big regional offices in major cities like Jabalpur, Gwalior, Indore and Bhopal. These offices are managed under the supervision of the Local Deputy Registration Inspector General. You can also reach out to any of the 51 registration offices in different districts and 234 offices in sub-districts.
Read below to learn and understand more about Stamp duty, Registration fees and the process, and how to calculate and pay your stamp and registration bill.
Stamp Duty
Anyone who wants to buy some property in the Indian state of Madhya Pradesh has to pay a percentage of stamp duty and registration fees. The state government is fundamental to its land laws and decreased the rate of Registration charges by 2 % in municipal areas to bring traction and movement in the real estate business. You’ll also have to pay stamp duty and Registration fees even while transferring a piece of property. Madhya Pradesh has also revised its rates after the pandemic slowed down. The new rate for stamp duty is 7.5%, and the rate for registration is 3%. Before the pandemic, the stamp duty charge was as high as 10.5%.
The reduction in rates helped the real estate industry in MP get back on its feet. Thanks to the reduction, the property market has recently faced some movement. Before 2020, if you bought a property worth one crore rupees. You’d have to pay 2.5 lakhs (12.5%) to the MP’s Registration and stamp department. Nowadays, you can get the same work done for just 75,000 Rupees according to the 7.5% Stamp duty rate, thereby saving great money.
Factors Influencing the Stamp Duty and Registration Charges Rate
You must keep several factors in mind while calculating your property’s stamp duty and registration charges. We’ve discussed three aspects briefly below:
- Location of the Property: In Madhya Pradesh, the rate for Stamp duty and registration charges are the same in both urban and rural areas. However, in some isolated cases, Stamp duty and Registration fees can differ. Many states like West Bengal and Maharashtra offer different rates for various regions.
- Circle rate of the vicinity: In Madhya Pradesh, The circle rate of your property’s neighbourhood plays a crucial role in deciding the stamp duty and registration charges. The higher your circle rate is, the Higher the stamp duty will be levied.
- Gender of the owner: In many Indian states like Haryana, Delhi and Chhattisgarh, lesser stamp duty is charged for women. However, the rate of stamp duty and registration charges in Madhya Pradesh is the same. The law can make changes very soon.
Stamp Duty Rates in Madhya Pradesh
| GENDER | STAMP DUTY RATES |
| Male | 7.5% |
| Female | 7.5% |
| Joint | 7.5% |
Registration Rates in the Indian state of Madhya Pradesh
| GENDER | REGISTRATION CHARGE RATES |
| Male | 3% |
| Female | 3% |
| Joint | 3% |
The registration fees also include either municipal or panchayat money for their tasks.
Stamp Duty for Different Documents in Madhya Pradesh
Various stamp duties for additional records in Madhya Pradesh are discussed in the table below:
| TYPE OF DOCUMENT | STAMP DUTY |
| Lease contract in the state of MP | 8% on the entire rent |
| Gift contract for a family member in Madhya Pradesh | 1% |
| Gift contract to other people in Madhya Pradesh | 5% |
Online Way to Pay Stamp Duty
There are several ways that you can use for paying stamp duty and registration fees in Madhya Pradesh. You can do it online, use E- stamping, or the traditional offline method. Let’s take a quick look at the step below.
Step 1: First, you must sign up on the official website of the registration and Stamps Department in the state of Madhya Pradesh.
Step 2: Now, hover over the main page on the website of the registration and Stamps Department of Madhya Pradesh.
Step 3: Click on the E-stamp verification option, and another screen will open.
Step 4: After entering the E-stamp ID, you’ll have to complete a captcha to prove you’re human and no illegal activities are taking place.
Step 5: The payment portal will open up, showing you modes of payment.
Step 6: Complete the transaction, and you’ll soon receive a receipt on your mail ID.
Offline ways to pay Stamp and registration money
It’s not a problem if you’re sceptical about technological advancements or the internet; you can still visit the office of your sub-registrar office in Madhya Pradesh to pay for your Stamp Duty and Registration fees. You can pay in cash, cheque or Debit card. Nowadays, the government assigns many banking institutions and post offices to collect the Stamp pay and registration fees of a property.
E stamping Method of paying Stamp Duty and Registration Fees
E-stamping is another modern way of spending your stamp duty and registration fees in the Indian state of Madhya Pradesh. The process is done using the token system provided by the SAMPADA (Stamps and Management of Property and Documents Application project). You need some documents like your identity proof to initiate the payment process. You can only make the payment after the registration process is completed. Digital Signatures are mandatory for this process.
Tax Benefits on Stamp Duty:
You can get tax benefits up to 1.5 Rupees Lakhs under Section 80C of the IT act. You can notice this deduction at the time of tax returns. However, you must claim the deduction of the year of purchasing as it becomes invalid after a year of buying the property.
Conclusion
Paying Stamp duty and Registration fees while purchasing a property has become significantly easier in Madhya Pradesh. The state government of Madhya Pradesh keeps changing the rates for Stamp Duty and registration fees according to national trends. They also slashed their Stamp Duty rates to increase business and gain traction in the stagnant real estate industry.