Kochi is one of the fastest-growing cities in India and is known as the financial capital of Kerala. The city is witnessing significant growth in its economy with a booming IT industry and the emergence of other industries like manufacturing and pharmaceuticals. The infrastructure is also keeping pace with these developments. It is no surprise that there is a high demand for quality housing and commercial real estate in the city. Anyone who wants to buy property in Kochi must be aware of the procedures and financial liabilities involved.
Let us understand the mandatory charges that should be paid while registering the property:
1. Stamp Duty
When you buy property in Kochi, it is mandatory by law to register the property in the owner’s name and record it with the government. Without this, the transaction will not be considered and recognized as a legal transaction. Home buyers in Kerala must pay a percentage of the property value as stamp duty during this process. Stamp duty is the state-imposed tax levied on the purchase or transfer of immovable property. In Kochi, like in other parts of Kerala, the rate of stamp duty as determined by the government is 8%. This charge is payable on the sale deed or transfer document for all the flats for sale in Kochi.
2. Registration Charges
Registration charges are the fees paid to the government to officially record the property transaction. They are separate from the stamp duty charges and cover the administration costs associated with the process of registration. While most states in India charge 1% of the deal value as a registration charge, Kerala charges 2% on the transactions for apartments in Kochi.
Exemptions and Concessions
Certain categories of property transactions are eligible for exemptions and concessions on stamp duty and registration charges. First-time homebuyers, women, and economically weaker sections may be exempt from taxes. This initiative is to encourage home ownership and make it accessible to certain sections of the society.
Property registration Process
The property registration process can be completed offline by visiting the Sub-Registrar’s office in Kochi. The required forms need to be filled and the stamp duty and registration charges can be paid. For online registration and payment, the Kerala government has permitted the usage of e-stamps where the stamp duty charges exceed Rs 1 Lakh. These e-stamps can be purchased from the official portal of the State’s Registration department.