What is Stamp Duty?
What are the Rates & Charges of Stamp Duty on Property?
What is Stamp Duty?
Stamp duty is a government tax that is imposed on property transactions. It is payable under the Section 3 of the Indian Stamp Act, 1899. One needs to pay the stamp duty at the time of property registration. The amount of stamp duty varies from city to city and also according to the real estate type.
Since stamp duty is added to the cost of the property, it is better to have an idea before you finalize the deal of your property. Also one need to pay stamp duty on time, otherwise, you will be charged penalty for the delay. In any kind of delay 2% penalty charge is added every month to the charge. This penalty charge can maximum go to 200% of the actual charge.
The stamp duty in Delhi charges are:
- Stamp duty is @3% if it is done by a woman and @5% if it is done by a man
- The registration fee is 1% of total value of Sale Deed + Rs. 100/- as pasting charge.
Here, have a look at the charges in different states of India.
- Haryana- 12.5% of consideration
- Chhattisgarh- 7.5% of consideration
- Punjab- 6% of consideration
- Madhya Pradesh- 7.5%
- Tamil Nadu- 8%
- Bihar- 7% + 2%
- Assam- 8.25% of consideration
- Maharashtra- 10%
- Rajasthan- 11%
- Meghalaya- 4.6% (up to 50K), 6% (50K-90K), 8% (90K- 150K), 9.9K (up to 150K)
- Uttar Pradesh- 8%
- Nagaland- 7.5% of consideration
- Jharkhand- 7% + 2%
- Tripura- 5% of consideration
- Kerala- 8.5%
- Goa- 8% of consideration
- Karnataka- 10%
Property registration is a process of registering the documents related to your property according to section 17 of the Registration Act, 1908. When you register the purchased property, you need to pay stamp duty on property and registration charges for the same.
When you purchase a flat or property directly from the builder, the registration of property gives you the right to legally use, own and dispose of the property. And when you purchase a flat or a property which is being transferred from one hand to another for the second time, you will have to pay registration charges.
The process of property registration is done at the office of the sub-registrar and that has jurisdiction over the area in which the property is situated or bought. In Indian states, land registration involves a computerized process, where middlemen are not required.
GST impact on Stamp duty and Property registration
Stamp Duty on property & Registration charges remains unchanged. These charges collected are different in each state. Generally, Stamp duty is between 4-10% and registration charges vary from 0.5-1% of property value.
When is the stamp duty payable?
The stamp duty is payable before the execution of the legal documents that is property registration. When you are buying a property, the stamp duty is generally paid within 30 days of settlement of property document.
What is the penalty charge?
If there is any delay in the payment of stamp duty, then the extra charge is added to the stamp duty charge and that extra charge is called penalty charge. The penalty charge is generally 2% for each month the stamp duty charge is delayed. This penalty charge can go a maximum of 200% of the actual stamp duty amount.
Who is liable to pay?
For stamp duty on property, the buyer/purchaser is liable to pay the charges. But in case of exchange of the property, both the parties have to pay charges equally.
Documents required for Stamp Duty
The documents you need to carry may vary from state to state, but given below are some of the documents which are generally required for stamp duty:
- Deed of partition
- Power of attorneys
- Conveyance of mortgaged property
- Mortgage deed
- Transfer instruments
- Lease deeds
- Certificates of sale
- Gift Deed
- Exchange deed
- Tenancy agreement
- License agreement
There are 3 different ways to pay stamp duty on property. Have a look!
- Physical appearance and stamp paper
- Franking
Every state has different franking charges, a minimum amount is prescribed for franking to every state. Thus, you need to refer to the charges according to the state you live in.
- E-stamping
To pay stamp duty through e-stamping, you must visit Stock Holding Corporation of India Limited (SHCIL) website. There you must select your state to check if e-stamping is available in your state. Then, you will get all the information that you need while paying stamp duty. Now you must fill up the application form available on the website and then give it to the collection centre of stamp duty along with the charges.
Also, you can pay the charges by your Debit card, credit card, demand draft, online banking or cheque. After paying the stamp duty, you will receive a certificate of e-stamp and it will have a unique certificate number that is also called UIN that confirms the issue date.
Stamp Duty Calculator
The stamp duty charges on property registration vary from state to state. Each state has different charges set for Stamp duty. For example, charges of stamp duty in Delhi is @3% if the vendee is a woman and @5% if the vendee is a man, while the stamp duty in Punjab is @6%. Thus, calculating stamp duty yourself is a bit tricky, so, using a Stamp duty calculator online is the best option you can use. Online stamp duty calculator will automatically calculate the charges on the property you have to pay on your property. You just have to select your state and value of the property.
- Article posted by Imperia Structures
Source : Zricks
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