If you are buying property, stamp duty and registration fees are the fees and taxes are the additional costs you will have to consider. These fees are set by the government based on property department rates and other factors. The Madhya Pradesh Registration and Stamp Department generates significant revenue by collecting stamp duty from property owners.
In a move to boost property ownership in the state, the government of Madhya Pradesh announced, on September 7, 2020, the reduction of stamp duty for real estate registration, by 2%. With the reduction, the MP’s stamp duty rate was 10.50% (7.5% stamp duty and 3% registration fee) from the previous 12.50% (9.5% stamp duty and 3% registration fee).
The decline in rates was expected to boost real estate sales within municipal areas. Despite the large inventory volume, active sales have declined due to the COVID-19 pandemic. Stamp duty rationalization may bring back some much-needed vigor to the real estate market in Madhya Pradesh.
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Stamp duty in Madhya Pradesh
| Stamp duty at MP | |
| male | 7.5% |
| feminine | 7.5% |
| subscriber | 7.5% |
Madhya Pradesh Registration Fee 2023
| MP registration fee | |
| male | 3% |
| feminine | 3% |
| subscriber | 3% |
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How much money can you save on real estate in Madhya Pradesh?
There are great savings if you are looking to buy a property soon. Let’s look at an example. Before September 2020, if you buy a property, you will have to pay Rs 12.50 lakh for stamp duty, on a property worth Rs 1 crore.
Property cost: Rs 10,000,000
Ex-stamp duty rate: Rs 12.50
Stamp fee: Rs 1,250,000
Under the current scenario:
Property cost: Rs 10,000,000
Current stamp duty rate: Rs 10.50
Stamp fee: Rs 1,050,000
Hence, you will save Rs 2 lakh. Note that there are no concessions for female and homebuyers MP’s stamp duty on the property It is the same for both men and women, in Madhya Pradesh.
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Do stamp duty discounts really help?
You can see by the above example that reductions in stamp duty will definitely help in improving buyer morale. However, buyers will find great relief, if circuit rates are also lowered, especially in places where there is a larger gap between actual market value and circuit ratei.e. where the circuit rate is much higher.
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The demands of the real estate industry in MP
Industry bodies are urging the authorities to consider reducing the registration fee by 2%. If this happens, the overall burden will be 8.5% which bodes well for the real estate market.
How to pay stamp duty in MP?
You can choose to pay the stamp duty, either by going to the sub-registrar’s office and paying it directly in person, or by electronic stamp or express.
Stamp duty and registration fee in Madhya Pradesh: How is it calculated?
Stamp duty and registration fee in Madhya Pradesh are calculated as shown below:
If you have purchased a property worth Rs 60,00,000, you will have to pay the following fees:
Stamp duty at MP, which is 7.50% of property cost = Rs 4,50,000
The registration fee represents 3% of the cost of the property = 1,80,000
The total amount to be paid includes Rs 6,30,000
The official MP IGR website provides citizens with the option to calculate stamp duty and registration fee. The steps are shown below:
- Go to the official website https://www.mpigr.gov.in/ And sign in with your credentials
- Click on the Property Valuation and Fee Calculation link
- Then press Duty Calculation
- Enter your name, address and other details. Select the category and type of verb.
- Click Validate to validate the details. Stamp duty payable will be displayed on the screen.
How to check stamp duty and registration fee in MP?
The official IGR Madhya Pradesh portal enables citizens to check stamp duty and registration fees. To do this, visit the IGR MP website and click on Check Stamp Duty and Registration Fee Chart on the left-hand side menu bar. The PDF format of the stamp duty and registration fee will be displayed on the screen.
The electronic seal of Madhya Pradesh
At MP, you can pay stamp duty and register online through the dedicated portal – Stamp, Property and Document Administration (SAMPADA) application. Before SAMPADA, stamping and related work was very tedious for the average person and it took days to deliver the approved documents. Now, it is much faster and easier to access these documents and also save them for future reference.
Follow the steps to pay stamp duty online at MP:
Step 1: Log on to the official website of Registration and Stamps, Business Taxation Department, Government of Madhya Pradesh, or click here to record MP.
Step 2: Log in to “Estamp Verify” and proceed to pay the required fee.
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What should be noted when choosing an electronic seal?
As directed by the authorities, online payments may only work if you select English as the language on the login page. The details you feed must be in English as well. Also note that digital signatures are mandatory. Be careful not to hit the refresh or go back button until the payment process is complete.
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What does a stamped electronic document look like?
The details on the e-seal will include:
- Serial number or unique identification number.
- Release date and time.
- The amount of stamp duty paid (in words and figures).
- The name of the buyer and the other party.
- address of the buyer and the other party.
- Description of the property or subject.
- User ID.
- Service provider code.
- Digital signature, certified barcode.
- Security features.
sealed document
Stamp assignment in MP using Franking
You can also pay stamp duty through banks and post offices approved and designated by the Parliamentary Government.
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Stamp duty at MP: tax advantages
Under Section 80c of the Information Technology Act, one can get benefits of up to Rs 1.50 lakh on paying stamp duty at MP. Anyone can take advantage of this feature while filing their IT returns. However, note that this discount can only be availed in the year of purchase of the property.
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Increased property registrations in MP despite the spread of the Corona virus
Despite the pandemic, property registrations have increased in Madhya Pradesh. Official data showed that in the 2020-21 financial year, around 1,07,000 properties were registered, generating revenues of Rs. 1,325 crore, which is 8% more than the previous financial. Also, real estate registered during the coronavirus period was much higher than what was targeted by the department, with a big jump in demand for affordable plots and homes, especially from first-time homebuyers.
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Stamp duty in MP: how to register a complaint?
To register a complaint regarding stamp duty in Madhya Pradesh, visit https://www.mpigr.gov.in.
Under the Important Links section, click on Register your complaint.
You will be taken to a new page where you must log in with your username and password.
Once this is done, a complaint form will open where you can write your complaint in detail and submit it.
questions and answers
Who can grant a license to service providers for the e-stamp service?
The Senior District Registrar or District Registrar of the District in Madhya Pradesh, has the power to grant licenses to service providers.
Is the e-seal valid in MP?
Yes, after the e-stamp, you can also view the information regarding the amount paid, party details, transaction details, etc.
Can I pay stamp duty and registration fee through challan in MP?
Yes, you can pay stamp duty and registration fee through challan, online payment and by using the credit limit of MP providers.
| Do you have any questions or opinion about our article? We’d love to hear from you.Write to Editor-in-Chief Jomur Ghosh on jhumur.ghosh1@housing.com |