An overall state-specific brief of the stamp duty and registration charges for getting a Property in Punjab registered is displayed in the following schedule.
| Ownership | Gender | Stamp duty | Registration Fee |
|---|---|---|---|
| Single | Man | 7% | 1% |
| Single | Woman | 5% | 1% |
| Joint | Woman + Woman | 5% | 1% |
| Joint | Man + Woman | 6% | 1% |
| Joint | Man + Man | 7% | 1% |
The stamp duty and registration fee are based on the transaction value, i.e., sale consideration. The consideration amount is equal to the deal value, or the actual total value of funds, involved in any purchase/ sale transaction agreed to between the buyer and seller of the property and entered in the sale deed or the Collector rate (otherwise known as circle rate or guidance value or guideline value), whichever is higher.
The respective District Administrations fix such a standard rate for land and other properties. Such fixation is done in the interest of due revenue to the Government and to prohibit the unscrupulous elements, downsizing the value for registration only, to reduce their stamp duty burden.
Normally, a property may not be registered at a value lesser than that circle rate. Even if a property is intended to be registered at a value lower than the prevailing guideline value, the stamp duty will have to be paid on the guidance value only. However, if the transaction value is higher than the guidance value, the stamp duty will have to be paid only based on the deal value and not at the guidance value.
In the State of Punjab, for a property in Punjab, a portion of the overall stamp duty collected is allocated for infrastructure developmental activities in the urban areas of the State as follows:
1% towards Social Infrastructure Cess (SIC) for funding the schemes of water supply and environment improvement and another 1% for Punjab Infrastructure Development Board.
To garner funds for such developmental activities in Punjab, the Resource Mobilisation Committee of the State Government has increased the stamp duty by 1% by reintroducing the social security cess on registration of sale documents in urban areas in the State.
Further, a registration fee of 1% subject to a maximum of Rs.2,00,000 is also payable. This registration fee is gender-neutral, i.e., irrespective of whether it is the man or woman in whose name the property is registered, a 1% fee has to be paid. Also, it is irrespective of the location, whether urban or rural, i.e., it is 1% throughout the Punjab State for a Property in Punjab.
Whether the transaction is an outright sale or even a gift, the above rates are squarely applicable.
Besides the above duty and fee, facilitation charges have to be paid to the government as per the following slabs:
Rs.1000, for consideration value up to Rs.10,00,000
Rs.3000. for consideration value between Rs.10,00,001 to Rs.30,00,000 and
Rs.5000 for consideration value is above Rs.30,00,000.
It is a boon to the residents of Punjab, i.e., where an owner of immovable property, during his lifetime, registers a transfer of such property to his blood relations, i.e., spouse, father, mother, son, daughter, grandson, granddaughter, including brother and sister also (which was earlier dutiable), stamp duty in whole, payable on the instruments of such transfer is exempted. [vide Order dated 7th May 2014 of the Department of Revenue Rehabilitation And Disaster Management (Stamp And Registration Branch)] Neither cess is payable. It is in the form of a gift deed. However, facilitation of charges of Rs.500 has to be paid.
In addition to all the above, a Pasting Fee of Rs. 200 will be applicable for all the documents, whether it is a sale deed or gift deed or mortgage deed of Power of Attorney or its cancellation.
In case of mutual exchange of property among the family members, the charges payable by the executors will be Rs. 900 as stamp duty, consisting of Rs. 300 as mutation charges, Rs. 500 as facilitation fee, and Rs. 100 as a pasting fee. This meager charge of Rs.900 is irrespective of the value or location of the property – whether it is 1 Marla (25 square yards) or 100 acres.
Suppose a property acquired by a woman with concessional stamp duty is transferred to a male relative within a year. In that case, the government will take back or recover the 2% rebate given to the woman at the time of registration of the property.
No duty/ registration shall be payable for property in Punjab when an instrument is executed for purchase of land to set up a PEDA (Punjab Energy Development Authority) project, under the NRSE (New and Renewable Sources of Energy) Policy, 2012 by or in favor of any person/ company/ firm/ society.
Stamp Duty in Punjab for Women
As a step in the direction of women empowerment and promoting women house ownership, the government of Punjab has bestowed a concession upon them, i.e., stamp duty payable on the documents registered in the name of a woman, either in her individual capacity or jointly with another woman, is 1% less than the normal stamp duty applicable to all classes of persons. This lower levy remains the same in case two women jointly own the property.
In case a joint property is being registered in the name of a man and a woman, the applicable stamp duty will be 6% of the transaction value.
In case a property is registered jointly in the name of a man and woman, then the woman should get the rebate in proportion to her share in that property and not at the blanket rate of full concession.
Payment of Stamp Duty:
The Central Government has appointed and licensed M/s. Stock Holding Corporation of India Limited (SHCIL) for e-stampings throughout the country.
Therefore, the buyers of Projects in Punjab may pay online (through the SHCIL portal) the stamp duty in Punjab and get the e-stamping done. Alternatively, the buyers may also visit any designated ACC (Authorized Collection Centre – Scheduled Commercial Banks) or CRA (Central Record Keeping Agency) branch office, duly fill in the e-stamping application form, take a printout, sign the same, remit the requisite amount by Cash/Cheque/Demand Draft/ Pay Order/ RTGS/ NEFT/ Account to Account transfer and get the e-stamping Certificate instantly, with UIN – Unique Identification Number.
It should be noted that no duplicate e-stamping certificate can be issued if it is lost/ misplaced, so it should be carefully preserved. In compliance with the Punjab Stamp Manual, 1957, transactions more than Rs. 1 lakh should be paid with Punjab e-stamp only.
Punjab e-stamp Certificate is a computer-generated substitute for traditional stamp papers.
The contents of the Punjab e-Stamp certificate are Payee’s name, the Serial number of e-Stamping Certificate, GRN (Government Receipt Number), Date and Time of Payment, Nature of the property/ land, Department Reference Number, Value of immovable property/ land, Stamp duty amount paid.
E-stamping can be verified by entering the Certificate Number, type of Stamp Duty in the CRA web page, date of Certificate issue, or using the barcode scanner.
Along with all the necessary documents and an E-stamping certificate, the buyer may book a time slot online with the Registrar to get the property duly registered.
You are entitled to claim a deduction of the stamp duty and registration fee under section 80(c) of the Income Tax Act, 1961, up to Rs 1,50,000.
In the process of registration of a Property in Punjab, the execution of documents through Power of Attorneys is a common one, and the Punjab Government uses this as a source of generating revenue.
The following Table amply describes the various charges payable.
| Name of the Deed | Stamp Duty (Rs.) | Registration Fee (Rs.) | Facilitation charges (Rs.) |
|---|---|---|---|
| General Power of Attorney (up to 5 persons) | 2000 | 400 | 2000 |
| General Power of Attorney (more than 5 persons) | 4000 | 400 | 2000 |
| Cancellation of General Power of Attorney | 1000 | 400 | 2000 |
| Special Power of Attorney | 1000 | 100 | 2000 |
| Cancellation of Special Power of Attorney | 500 | 100 | 2000 |
In most cases, the properties will be purchased by getting loans from the banks, financial institutions, or housing finance companies to reap the benefits of allowances/ deductions under the Income Tax Act, 1961. In such cases, the concerned properties will be mortgaged by the buyer of the property (borrower of the bank) to the respective financier by executing an equitable mortgage. The Memorandum of Deposit of title deeds must be registered with the concerned Registrar. The Stamp duty, registration fee, and facilitation charges payable to the Government are indicated in the following Table.
| Name of the Deed | Stamp Duty (Rs.) | Registration Fee (Rs.) | Facilitation charges (Rs.) |
|---|---|---|---|
| Mortgage Deed (without Possession) | 4% of the Consideration Value | 1% of the Consideration value, subject to a maximum of Rs.2,00,000 | 100 |
| Mortgage Deed (with Possession) | 4% of the Consideration Value | 1% of the Consideration value, subject to a maximum of Rs.2,00,000 | 500 |
In most cases, the properties will be purchased by getting loans from the banks, financial institutions, or housing finance companies to reap the benefits of allowances/ deductions under the Income Tax Act, 1961.
In such cases, the concerned properties will be mortgaged by the buyer of the property (borrower of the bank) to the respective financier by executing an equitable mortgage. The Memorandum of Deposit of title deeds must be registered with the concerned Registrar.
The Stamp duty, registration fee, and facilitation charges payable to the Government are indicated in the following Table.
