Andhra Pradesh: Latest Stamp Duty & Registration Charges 2023

In Andhra Pradesh, tax levies contribute significantly to government revenue. It is these duties that enable the local authorities to perform their functions efficiently and effectively, including infrastructure development, from collecting annual property taxes to collecting stamp duty and registering properties.

In May 2023, the Andhra Pradesh government came up with the revised market value of land and property registration. The range lies between 10-30%, and sources are saying there is a possibility that prime locations might witness about a 50% increase in land value. Also, the areas closer to the national highways and SEZs will see an increase in land value by 75%. The change became effective on June 1, 2023.

The state claims – this revision was on hold because of the COVID-19 pandemic and is taking place almost after 3 years.

Andhra Pradesh’s government has approved a request from the district-level committees for an increase in market value. This decision is taken in response to the heavy rush in the registration office, evidenced on May 29th and May 30th. The systems became inoperational due to technical glitches caused by a lot of registration applications.

How to Calculate the Latest Stamp Duty and Registration Charges

In Andhra Pradesh in 2023, latest stamp duty and registration charges are calculated using the state government’s Ready Reckoner Rates (RRR) or the market value of the property. Thus, if you pay Rs. 8,000 per sq. ft. for a property, and the RRR in the region is Rs. 7,000. So, the stamp duty and registration charges you pay can be any amount between Rs. 8,000 and Rs. 7,000.

In Andhra Pradesh, registration and stamp duty are levied at 1% and 5% of the property’s market value, respectively. Homebuyers must also pay a transfer duty fee of 1.5% of the property’s market value. As a result, a homebuyer pays 7.5% of the transaction value.

Let us understand this with an example.

If a person buys an apartment worth ₹ 90 lakh, let us suppose the applicable stamp duty is 5%, the registration charge is 1%, and the transfer duty is 1.5%.

Then,

Stamp duty- 5% of ₹ 90 lakh = ₹ 4.5 lakh

Registration Charge- 1% of ₹ 90 lakh = ₹ 90,000

Transfer Duty- 1.5% of ₹ 90 lakh = ₹ 1.35 lakh

So, the total registration cost will be – ₹ 4.5 lakh + ₹ 90,000 + ₹ 1.35 lakh = ₹ 6.75 lakh

Thus, the final cost of the property will be ₹ 90 lakh + ₹ 6.75 lakh = ₹ 96.75 lakh

The Andhra Pradesh stamp duty rates are different for different types of transactions. It is 5% for the immovable property, sale agreement, agreement of development, and agreement of construction, 6% for sale cum-GPA agreement, 1% for agreement cum GPA development & construction, and 0.4% for a lease agreement less than a decade and 0.6% for more than a decade but less than 20 years.

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Main Objectives of Andhra Pradesh Stamp & Registration Charges

• Maintaining an efficient and effective system for registering property transactions while ensuring transparency and correctness.
• To make property registration services more accessible to citizens through online portals and e-services.
• Improving revenue collection through quick and accurate property and transaction registration.
• Reduce the time it takes to register a property and offer citizens services as soon as possible.
• To encourage digitizing property records and transactions for improved record-keeping and transparency.
• To protect the safety and security of real estate records, as well as to combat fraud and malpractice in real estate transactions.
• To simplify the property valuation and market value assessment processes while maintaining fairness and consistency.
• To raise citizen understanding of property registration rules and regulations and to assure compliance with legal obligations.
• To assist citizens with difficulties relating to property registration services with efficient and transparent grievance redressal processes.

What are the Factors that Influence the Stamp Duty & Registration Charges?

1. Location: The rate of latest stamp duty and registration charges depends on the location of the property. The rate on property in the municipal limits will be lesser than in the other areas. For example, the rate is 75 % for the property close to national highways, and for the rest, it is less.
2. Property Owner Age: The next factor that influences the stamp duty & registration charge is the age of the property owner. For example, it is less for senior citizens and more for average-aged individuals.
3. Property Owner Gender: The stamp duty and registration charge vary for genders. For example, if is 6% for male owners, then females will get a 2% concession, and it will be 4% for them.

In Conclusion,

In Andhra Pradesh, it has become mandatory and attracts a penalty. Thus, always keep an eye on the latest stamp duty and registration charges and the checklist of the documents required to avoid blunders in the long run.

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