A Comprehensive Guide to Stamp Duty
Nov 19, 2016 Legal Guidance
Stamp Duty is basically a kind of tax paid by the purchasers for the transaction of his property to the government under whose jurisdiction the property is. It is imposed on all kind of properties, be it freehold or leasehold, agricultural or non-agricultural, apartment or commercial units.
Stamp Duty is subscribed in the Indian Stamp Act of 1899 and Bombay Stamp Act of 1958. This was first introduced by the English in 1899. Initially, the Stamp Duty had to be deposited in the government treasury in accordance with the procedure mentioned in those acts. Even now the steps postulated in Section 3 of Indian Stamp Act 1899 is followed for submission of Stamp Duty.
The percentage of Stamp Duty that is needed to be paid by the buyer differs from one state to the other. Even it might vary with the location of the property.
For example, in Maharashtra, if you are buying a property within the premises of the city you have to pay 6.5 percent of the property value as stamp duty which is 8 percent in Tamil Nadu irrespective of jurisdictions.Other states like Gujrat, Karnataka, Rajasthan and Kerala also have their own Stamp Laws.
Central Law on Stamp Duty considers father, mother, husband, wife, son, daughter and grandchildren to be one family. But the Stamp Bill of Tamil Nadu has also included a sister, brother, husband of the already deceased daughter and wife of the deceased son within the radius of the family.
Those who are buying a flat, they need to pay a Stamp Duty on the Undivided Share (UDS) of property. This is calculated on the basis of the land parcel that is allotted to the purchaser in the apartment building.
Keep in mind that it is absolutely mandatory to pay Stamp Duty. It is an integral part of sales tax or income tax collected by the government which has to be paid one time only which is at the time of purchase of the property. In case you fail to pay that, you will either have to pay a penalty of 2 percent on the remaining amount every month or 200 percent for the unpaid amount. The advantage of Stamp Duty is that it stands as an evidence of authorisation of property to the government of India.
Now you must be wondering how to pay Stamp Duty after all? Fortunately, this has become very easy these days. In Maharashtra, you can even pay it online to the sub registrars' offices. The more conventional method is to purchase the stamp papers which is equivalent to the value of the Stamp Duty in the name of one of the parties involved in the property transaction. Then the amount for Stamp Duty has to be paid at the sub registrars' office within the date of sale of the deed.
Although it has become a custom in India, for the purchasers to pay the value of Stamp Duty, but according to the law, it can be paid by the transferee or purchaser or they can make a written agreement to pay mutually.
Stamp Duty is subscribed in the Indian Stamp Act of 1899 and Bombay Stamp Act of 1958. This was first introduced by the English in 1899. Initially, the Stamp Duty had to be deposited in the government treasury in accordance with the procedure mentioned in those acts. Even now the steps postulated in Section 3 of Indian Stamp Act 1899 is followed for submission of Stamp Duty.
The percentage of Stamp Duty that is needed to be paid by the buyer differs from one state to the other. Even it might vary with the location of the property.
For example, in Maharashtra, if you are buying a property within the premises of the city you have to pay 6.5 percent of the property value as stamp duty which is 8 percent in Tamil Nadu irrespective of jurisdictions.Other states like Gujrat, Karnataka, Rajasthan and Kerala also have their own Stamp Laws.
Central Law on Stamp Duty considers father, mother, husband, wife, son, daughter and grandchildren to be one family. But the Stamp Bill of Tamil Nadu has also included a sister, brother, husband of the already deceased daughter and wife of the deceased son within the radius of the family.
Those who are buying a flat, they need to pay a Stamp Duty on the Undivided Share (UDS) of property. This is calculated on the basis of the land parcel that is allotted to the purchaser in the apartment building.
Keep in mind that it is absolutely mandatory to pay Stamp Duty. It is an integral part of sales tax or income tax collected by the government which has to be paid one time only which is at the time of purchase of the property. In case you fail to pay that, you will either have to pay a penalty of 2 percent on the remaining amount every month or 200 percent for the unpaid amount. The advantage of Stamp Duty is that it stands as an evidence of authorisation of property to the government of India.
Now you must be wondering how to pay Stamp Duty after all? Fortunately, this has become very easy these days. In Maharashtra, you can even pay it online to the sub registrars' offices. The more conventional method is to purchase the stamp papers which is equivalent to the value of the Stamp Duty in the name of one of the parties involved in the property transaction. Then the amount for Stamp Duty has to be paid at the sub registrars' office within the date of sale of the deed.
Although it has become a custom in India, for the purchasers to pay the value of Stamp Duty, but according to the law, it can be paid by the transferee or purchaser or they can make a written agreement to pay mutually.
Looking for property portal?
Related Articles
-
Advantages of Married Couple Owning a Joint Property
Dec 01, 2016 -
-
-
Buy a House with Cash: What Are Its Pros and Cons
Nov 22, 2016
See comments (0)
Write a comment
