While purchasing any property, buyers need to pay stamp duty and registration charges to the State Government. The Government levies this charge to register the property against the owner's name in the municipal records. As per Section 3 of the Indian Stamp Act, 1899, it is mandatory for a buyer to pay stamp duty charges while registering a property. Further, these charges vary across states. In this particular piece, you will find details on the Punjab stamp duty and the applicable registration fees.
The Punjab cabinet has revised the stamp duty rates in order to mobilise additional resources for the state. After the amendment of Schedule 1-A of the Indian Stamp Act, 1899, stamp duty rates on 17 out of 65 items are expected to double. As per recent news, the Punjab government granted an exemption of 2.25% in stamp duty and fees to those registering their property/land by March 31, 2023. Check out an article about Property Insurance
Stamp duty in Punjab is also inclusive of the social infrastructure cess. Given below is a table showing present stamp charges in Punjab:
| 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% |
| 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. ₹2 lakhs) |
| Transfer of property | Nil | Nil |
| General Power of Attorney (upto 5 people) | ₹2000/- | ₹400/- |
| General Power of Attorney (more than 5 people) | ₹4000/- | ₹400/- |
| Special Power of Attorney | ₹1000/- | ₹100/- |
| Cancellation of GPA | ₹1000/- | ₹100/- |
| Cancellation of SPA | ₹500/- | ₹100/- |
| Mortgage Deed (without Possession) | 4% of the Consideration amount | 1% of the Consideration amount (Max. ₹2 lakhs) |
| Mortgage Deed (with Possession) | 4% of the Consideration amount | 1% of the Consideration amount (Max. ₹2 lakhs) |
District administrators fix a standard rate for land and other properties, known as circle rates or guideline values. During property registration in Punjab, if the price of a property is less than the guidance value, there will be stamp duty charges only on this value. On the contrary, if the transaction is higher than the circle rate, there will be an applicable stamp duty based on the deal value and not just the guidance value. Now, let's look at a simple illustration to understand Punjab stamp duty charges for a flat in Ludhiana.
| Value of the property as per the sales deed | ₹50 lakhs |
| Property's value as per the circle rates | ₹40 lakhs |
| Stamp duty | 7% of ₹50 lakhs = ₹3.5 lakhs |
| Registration charge | 1% of ₹50 lakhs = ₹50,000 |
To further simplify the calculation of stamp duty and registry rate in Punjab, one can use a stamp duty calculator online.
