—Guide
Buying Property in Telangana: Stamp Duty, Market Value, RERA and Due Diligence
What to check and pay when buying property in Hyderabad and Telangana — stamp duty and market value, TG RERA, approvals, encumbrance certificates, lake buffer zones and tax.
Hyderabad's property market attracts buyers from across India and abroad. Along with the price, buyers need to plan for stamp duty and registration costs, check approvals and titles, and meet tax obligations. Rates and procedures change, so check current requirements.
Stamp Duty and Registration
Telangana levies stamp duty, transfer duty and a registration fee on sale deeds, calculated on the higher of the agreed price and the government's market value for the property. Market values are set by the Registration and Stamps Department and revised periodically. Check the current rates and market value on the department's portal before finalising the price.
Market Value and Income Tax
If the market value used for stamp duty exceeds the price by more than 10%, the difference can be taxed in the buyer's hands, and the seller's capital gain is computed on the market value.
Approvals and RERA
- For new projects, check registration with the Telangana Real Estate Regulatory Authority (TG RERA).
- Check building permission from GHMC, HMDA or the local body, and the occupancy certificate for completed buildings.
- For plots, check layout approval and whether regularisation was needed.
Title and Encumbrances
- Get an encumbrance certificate from the Registration Department for a sufficient period.
- Trace the chain of title documents.
- For land, check Bhu Bharati records and whether agricultural land was converted for non-agricultural use.
Lakes and Government Land
Hyderabad has intensified action against construction in lake full tank level (FTL) and buffer zones and on government land, including through HYDRAA. Check that the property isn't within such areas.
Tax Obligations for Buyers
- Deduct 1% TDS on purchases of ₹50 lakh or more from resident sellers.
- Deduct higher TDS, with a TAN, when buying from NRIs.
- Pay GST on under-construction property bought from a builder.
Getting Help
Think Filing handles the tax side of property purchases in Telangana and works with lawyers on due diligence.