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Stamp Duty

  • Do I need to pay stamp duty if I am taking home on rent ? How much is that ?

    If the rent agrrement is more than 11 months then it needs to be registered and then stamp duty needs to be paid. How much Stamp Duty needs to be paid, depends upon the amout of rent aggreed.

  • Is there a provision to get refund of penalty paid in case of impounded document?

    Yes, there is a provision. Chief Controlling Revenue Authority (IGR & S) may orderrefund on appeal. For further assitance, we would recommend to contact the local authority.

  • Can I get an official opinion on the stamp duty that I am required to pay?

    If you are unsure of how much stamp duty is required to be paid for a specific document, an application can be submitted to the District Registrar under Section 31 of the Indian Stamp Act, 1899. You are also required to submit a draft of the proposed deed and an affidavit in the required format along with the application.

  • How is the circle rate different from the market value?

    Circle rates are the minimum authority-defined prices at which a property sale or transfer can be done between two parties whereas the Market Value is a price range arrived at by looking at actual transaction prices in a location. Market Rates are a better indication of the price point that sellers demand and buyers are willing to pay in a particular area.

  • What is meant by stamp duty?

    Stamp duty is a tax paid on different kinds of transaction. It is commonly paid by affixing stamp paper on the document effecting the transaction. Stamp Duty is paid at the time of registration.

  • Which party to the transaction is required to pay the stamp duty?

    In a transaction for the sale of property, the cost of acquiring the required stamp duty to be affixed on the sale deed should be borne by the purchaser. However, the parties may agree to share the stamp duty by providing it in the property document. For partition deeds, all the parties in proportion to their share are liable to pay stamp duty. For affidavits and power of attorneys, the person executing the document should pay the stamp duty.

  • Can the sub registrars office determine the market value of a property?

    When a document is presented to the Sub Registrar’s Office (SRO) for registration, the SRO will provide you with a market value slip in the prescribed format. If the party concerned agrees to pay the stamp duty on such value, the SRO will register the document. If the parties to the document do not agree to pay stamp duty on the market value as determined above, the SRO will keep the document pending and refer the document for determination of market value after collecting 50% of the deficit stamp duty as a deposit. The matter will then be referred to the Collector (District Registrar) who will hear the parties and determine the market value after spot inspection if necessary.

  • What property documents require stamp duty?

    Property documents of all types such as conveyance deeds, sale deeds, partition deeds, settlement deeds, gift deed, mortgages require stamp duty to be paid. The rates of stamp duty differ from one state to another and the calculation and payment of Stamp Duty is a crucial aspect of executing a property document.

  • Does stamp duty need to be paid on the circle rate or market value?

    Stamp duty and registration rates are to be calculated on the actual transaction price. The minimum transaction price cannot be lower than the circle rate.

  • How is stamp duty paid?

    Stamp duty on a property document should be paid by purchasing an e-stamp paper from an authorized stamp vendor. The stamp paper is computer generated and should be the first page of the document. The first few lines of the document, including the title of the document, date, names of parties etc. should ideally be printed on the lower portion of the e-stamp paper. Though e-stamp paper is recomended as it can be easily authenticated, non-judicial stamps papers can also be obtained offline. For making use of such type of stamps if the government authorized stamp vending office has stamp machine available then on the document produced the necessary amount franking print can be impressed.

  • Does a document need to state how the stamp duty has been calculated?

    Though not a common practise, one should always state in a property document how the stamp duty has been calculated. This information should include all the facts and circumstances which affect stamp duty. Therefore, if you are taking the benefit of a stamp duty exemption, then do state it in the document. You may engage an advocate to evaluate the stamp duty properly and draft such a clause for your document.

  • When does stamp duty have to be paid?

    You are required to pay stamp duty when the document transferring ownership of property is executed. You will need to pay this amount when the final sale deed or conveyance deed is executed.

  • What are the consequences of non-payment of stamp duty?

    When the required stamp duty on a document is left unpaid it cannot be accepted or received in evidence. Therefore, a transaction is invalid if it is done on the basis of a document not duly stamped. Further, documents presented to any public officer (excluding police) will be impounded and the stamp duty will be levied with a penalty.

  • What is circle rate?

    A Circle rate is the minimum value at which the sale or transfer of a plot, built-up house, apartment or a commercial property can take place. Circle rates are usually defined by the local state government’s revenue departments or the local development authorities. Circle rates also determine the minimum stamp duty and registration charges to be paid for such a transaction.

  • How is stamp duty charged on a mortgaged property when it is transferred to the mortgagee?

    The duty payable at the transfer of such property to mortgagee is computed after deducting the value of duty paid at the time of mortgage. Note: If I have a loan, the registration and stamp duty still happens in my name. There is no stamp duty required to be paid when I pay off the loan.

  • Is there a provision to write a document on the stamp paper available and to pay the deficit duty afterwards in urgent situations?

    Yes, there is such a provision provided the party concerned voluntarily comes forward to pay deficit stamp duty within one year from the date of execution (signature). The District Registrar will accept deficit stamp duty and certify accordingly on the document without levying penalty under Section 41 and 42 of Indian Stamp Act, 1899.

  • Do I need to pay stamp duty on all the documents forming a part of a property transaction?

    In cases of sale, mortgage or settlement, when more than one document forms a part of the transaction, Stamp Duty is required to be paid only on the primary document. The remaining documents can be stamped with Rs. 1/- (Rupee One Only) stamps. The stamp duty to be paid however shall be the highest that would be required to be paid for any of the documents. For example, when a mortgage deed has been executed with a guarantee, one would require to pay stamp duty only on the mortgage deed.

  • How do I determine the market value of property for the purpose of payment of stamp duty?

    The market value of property cab be determined if it was sold in the open market as stated in Section 47A of the Indian Stamp Act, 1899. To determine the market value of a property one may refer to the market value guidelines registers which are published and sold through the offices of the concerned Sub Registrar and District Registrar.

  • What would be the stamp duty if my sister & I together buy a property?

    It differs from state to state.

  • What is the procedure to be followed after a document is impounded?

    A public officer impounding a document will send it to the concerned Collector (District Registrar) to determine the stamp duty to be paid. The District Registrar will determine the stamp duty to be paid after giving an opportunity to the party concerned to put forth his arguments on the duty to be paid. He may levy a penalty which may range from a minimum of Rs. 5/- or up to ten times of the deficit total duty to be paid.

  • Do I need to pay stamp duty on my will?

    No stamp duty is required for a will.

  • Can I appeal the penalty imposed on an impounded document?

    Appeal can be preferred to the Chief Controlling Revenue Authority. (Commissioner and Inspector General of Registration and Stamps in the first instance, and then to the High Court if the parties are aggrieved).

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