The mesmerizing landscapes and beautiful beaches of Goa make it an ideal spot not just for vacationing but also for investing in property or owning a home. However, the process of buying a home can be quite daunting. It involves a significant amount of paperwork and can be taxing. After securing your property, registering it under the Registration Act of 1908 is essential. Completing this process entails paying the prescribed stamp duty and registration fees, imposed by the state government of Goa, which confers legal standing to your property documents. In this write-up, we will delve into the registration procedure, discuss stamp duty, explore registration fees, and look into the available methods for payment of these fees.
Stamp Duty Act of Goa
According to Section 3 of the Indian Stamp Duty Act 1899, state authorities are mandated to impose stamp duty. This aspect not only helps enhance government revenue but also provides legal legitimacy to the property documents. To officially register a property, payment of stamp duty is compulsory. Failing to pay these charges can result in penalties amounting to as high as 200 percent of the original amount.
In Goa, the stamp duty is influenced by the circle rate of the respective area, which is determined by the state government. Several factors come into play when calculating circle rates, including the age and gender of the owner, property location, amenities offered, and the type of property in question. Due to the higher circle rates associated with prime locations, properties in those areas will bear higher stamp duty costs. It is vital to understand that the stamp duty is a function of the current market value of the property. Interestingly, while many states do not offer discounts for women on stamp duty, Goa stands out as an exception.
Stamp Duty and Registration Fees
Distinct from other states, Goa establishes both stamp duty and registration fees based on the property's prevailing market value. For instance, in states such as Punjab and Uttar Pradesh, men are subject to uniform stamp duty rates, irrespective of property value.
Here are the stamp duty and registration fees in Goa as of 2022:
Market Value Registration Charges in Goa Stamp Duty in Goa
Upto Rs 50 Lakhs 3% 3.5%
Above Rs 50 Lakhs up to Rs 75 Lakhs 3% 4.5%
Above Rs 75 Lakhs up to Rs 1 Crore 3.5% 5%
Above one Crore 3.5% 5%
More than Rs 5 Crore 3.5% 6%
Contract for Sale 3% 2.9%
Act of Correction Rs 500 Rs 500
Conveyance Deed in Housing Co-operative Societies’ Favor 1.5% 3%
Goa Stamp Duty Calculated with AI
The calculation of stamp duty in Goa employs the National Generic Document Registration System (NGDRS). Following suit after Andaman & Nicobar, Punjab, and Manipur, Goa becomes the fourth state to implement the NGDRS.
To streamline the process of selling individual parcels, the Goan state government has made available the market price of each land parcel on a sub-registrar portal. An artificial intelligence (AI) system utilizes this data to compute the required stamp duty accurately. The revenue department assesses the land price for each survey number and routinely updates this information on the portal.
- Thanks to the AI system, the stamp duty calculation process will become far more efficient and rapid, reducing human intervention in the calculation.
- Each year, the AI system will adjust the rates in accordance with recommendations provided by the revenue department.
How Can I Pay Goa Stamp Duty?
The registration procedure mandates the payment of stamp duty through the following methods:
- Buying Stamp Paper: This approach remains the most common and practical method for paying stamp duty in Goa. An authorized seller provides you with stamp paper containing all necessary details of the real estate transaction. The stamp paper must be submitted to the sub-registrar within four months from the date of issuance.
- Franking: In this method, both parties sign a property agreement on a plain document. This agreement then gets further documented at an authorized bank using a franking machine. Banks typically charge franking fees at approximately 0.1% of the property's valuation.
- E-Stamping: Stamp duty fees can also be paid online through the Document Registration website for Goa. The website will calculate the stamp duty, allowing payment via debit card, credit card, or net banking services.