About Stamp duty

stamp dutyStamp duty is a legal tax payable in full and acts as an evidence for any sale or purchase of a property. The levy of stamp duty is a State subject and thus the rates of stamp duty vary from State to State. The Centre levies stamp duty on specified instruments and also fixes the rates for these instruments.

It is usually paid by the buyer with regardless to agreement and in case of property exchange, both seller and the buyer has to share the stamp duty equally.Stamp duty is generally paid on instruments, where any financial obligation is required to be created, transferred, limited, extended, extinguished or recorded excluding a bill of exchange, cheque, promisory note, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under Indian Stamp Act, 1899).

Transfer documents namely sale agreement, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and licence agreements, agreements of tenancy, lease deeds, power of attorney to sell for consideration etc. must be stamped in the right way, booting out transfer by will. Any delay in duty payment will pull in 2 per cent per month to the maximum of 200 per cent of the deficit amount of stamp duty.In case of flat purchased in a co-operative society on or after December 10 1995, stamp duty is to be paid on market value as figured out by Stamp duty ready reckoner or on condition stated in the instrument whichever is higher. However documents lodged with the sub-registrar or superintendent of stamps prior to any amnesty scheme attract a lump sum reduced penalty.

Stamp papers are to be purchased in the name of either of the parties, ie, seller or buyer involved in the agreement, failing which will disable the stamp paper. It is said to be valid for 6 months from the date of purchase, only if the duty is paid on time.

Revenue stamp of Re.1 should be affixed for any property value exceeding Rs 5000. The legal agreement should contain data like Carpet or Built-up area, number of floors in the building, year of construction, name of the Division/Village and C.S/C.T.S number of plot of land for less time consuming process.

Stamp Duty is charged on the basis of built-up area or carpet area in sq mts of the premises that is mentioned in the document. Land rates are measured per sq.mts considering F.S.I to be 1, the stamp duty and registration department has now adopted a uniform method.

However stamp duty is similar to conveyance whereas for gift deed between family members, the amount is calculated according to article 25 pertaining to conveyance or 2 per cent of the market value, whichever is less and it is basically 0.5 per cent of the amount borrowed.

Stamp duty is mandatory to be paid in full and in good faith. It can only be altered by giving a misleading information that would cause trouble in future, when offended under the Stamp Act for hiding the true facts. However the surplus payment of stamp duty can be avoided as such there is no specific identification between super built-up area or saleable area.

 

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21 Responses to “About Stamp duty ”


  1. 1 Nitesh Oct 24th, 2006 at 2:17 pm

    If a Seller has paid stamp duty and wish to sell the same within Tenure of 1 yr of Purchase is there any benifit or exemption applicable for stamp duty.
    regards,

    nitesh Kshirsagar

  2. 2 Sunil Nov 17th, 2006 at 12:44 am

    If purchaser sell the property it becomes conveyance and stamp duty has to paid according to Article 25 of Bombay Stamp Act 1958. There is no exemption in stamp duty.
    regards
    Sunil Thoolkar

  3. 3 Manish Kothari Oct 16th, 2007 at 5:05 am

    Dear Sir,

    What will be the rate of stamp duty for gift deed amounting to Rs. 5 Lacs

    Regards

  4. 4 ashok Nov 8th, 2007 at 12:20 pm

    can exchange of properties be made between two Charitable Trusts as between two persons?

  5. 5 sharada Jan 6th, 2008 at 3:41 am

    What will be the stamp duty for land suiated at Andhra Pradesh and what will be the amount required for Registration ?.

  6. 6 Amit Apr 29th, 2008 at 9:42 pm

    Dear Sir,

    What will be the stamp duty on gift deed of shares of listed company amounting to Rs. 10,00,000 (face value) Market value 30,00,00,000

  7. 7 Thomas Dsouza Jun 4th, 2008 at 8:37 pm

    Our Society is in process of getting conveyance and has asked all members to pay stamp duty on all agreements signed before 10-12-1985. Kindly guide me the process of paying stamp duty and is there any amnesty shceme covered to pay stamp duty for the period mention above.

  8. 8 Thommandra Vijaya Kumar Jun 17th, 2008 at 9:59 pm

    What is the stamp duty on partition Deed among the three brothers (two brothers one share and one brother one share). What are the exemptions. The property was inherited from the father through a Will and now adjustments are being made among ourselves.

  9. 9 SAMI Jul 27th, 2008 at 11:23 pm

    I had purchased a flat in resale in year 2000 ,i paid my stamp duty
    as per market value of year 2000,the person from whom i purchased
    the flat had bought this flat in year 1996 from first owner and he had also paid stamp duty as per market rate of 1996,

    However the first owner had purchased this flat in year 1983 from builder and during 1983 there was no stamp duty though he had registered his document,and he was liable to pay stamp duty at the time of conveyance,but conveyance never happened and he had sold his flat long back and now i am the third owner of flat.

    MY question is, if my society goes for conveyance ,how much stamp duty
    i am liable to pay on first agreement,is it going to be as per current
    market rates ?if not then what could be approximate amount.

    Also i want to know what if someone who had purchase flat in 1983 and
    society is going for conveyance today ,how much amount he is required to pay.

    Thanks

    S patel

  10. 10 Shrikant Jul 31st, 2008 at 9:30 am

    Dear Sir,
    My mother is intending to gift the property in my name as a son. At present market value of that immovable property/flat is 28,000,00/-Rs. and the property is situated in Mumbai suberbs. How much stamp duty I have required to pay?. if you will guide be in the context. i will remain greateful to you. Thanks and regards,
    Shrikant

  11. 11 Priyanka Aug 7th, 2008 at 11:17 pm

    1. What will be the Stamp Duty, if the Flat in a Co-op. Hsg Soc.(Mumbai)was purchased in the Year 1976 just for Rs. 20000/-

    2. If after 3 years the Second name in the Flat is Deleted, is it liable to Stamp Duty ? Here, Second holder is the sister of 1st Holder.

    3. If after 2 more years, Wife’s name is added as a Second holder, is it liable to Stamp Duty ?

    Thanks & Regards,

  12. 12 MANDA Aug 16th, 2008 at 9:38 pm

    Sir, I have aleady paid estate duty in the year 1976 for a house in co-operative hsg. soc.In the year 1987 I have got an estra FSI. Do I have to pay stamp duty on extra FSI or for the whole property in 2008. (State of Maharashtra)

  13. 13 Kiran Nehete Oct 6th, 2008 at 11:17 pm

    If after 8 years the first name in the Flat is Deleted, is it liable to Stamp Duty ? Here, Second holder is the father of 1st Holder.

    If after 2 more years, Wife’s name is added as a Second holder, is it liable to Stamp Duty ?

    for gift deed what is the rate of stamp duty?

    Thanks & Regards,

  14. 14 patel arvind Oct 15th, 2008 at 10:18 pm

    what is the rate of stamp duty on land mortgage

  15. 15 Shiraz Khan Nov 25th, 2008 at 5:48 pm

    Dear Sir / Madame,

    I have lost the the origimal stamp duty receipts paid by me under the Stamp Duty Amnesty Scheme, kindly let me know the process for procuring a duplicate receipt for the same. Are the original Stamp Duty Reciepts requrired for Registration of the Flat or not ?

    Kindly revert at the earleist.

  16. 16 mitesh gandhi Mar 11th, 2009 at 1:10 am

    what will be the rates of stamp duty on leave licence agreement after 2006

  17. 17 I.S.Batra Apr 19th, 2009 at 12:55 am

    If I now buy a flat in resale in Mumbai on which the stamp duty was paid in by the first purchaser in July 2006 and redister by June, 09 (ie, within three years of its first registration), shall I have to pay the full stamp duty again or is there any concession available on such deals.
    Please reply fast. I have heard that an amendment was made in May, 2005 in the Stamp Duty Act that allows one to pay the stamp duty only on the difference in the cost of flat then and now.
    Expecting an early response
    Yours Sincerely
    Batra, I.S.

  18. 18 kunal shah Aug 20th, 2009 at 6:30 am

    Dear Sir,
    What will be the rate of stamp duty for gift deed amounting to Rs. 5 Lacs
    Expecting an early response
    Regards
    thanking u ,

  19. 19 richa Dec 1st, 2009 at 11:00 pm

    I WANT TO KNOW THE PROCESS OF GETTING LICENCE FOR STAMP DUTY IN DELHI.

  20. 20 Mohan Rao Feb 13th, 2010 at 10:21 am

    Dear Sir

    I am thinking of transfer of my property to my spouse or son or daughter or grand
    son aged 10 years. How much stamp duty and registration charges I have to pay
    in Andhra Pradesh state.

    In Karnataka state the stamp duty and registration charges Rs.1000/- for the
    above.

  21. 21 Rajesh Bhat May 8th, 2010 at 10:11 pm

    Dear Sir,

    I am applying for a reverse mortgage loan on a property in Kerala. I have got a sanction from Canara Bank, however would like to know what stamp duty I will have to pay for any registration that may be required.

    Regards
    Rajesh

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