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Understanding Stamp Duty Rates and Registration Charges on Property

This assessment is known as the stamp obligation. It is the charge on business and private property exchanges and leasehold or freehold properties. The stamp obligation is charged by the states and hence, the rate unquestionably differs from state to state. for more info @ http://www.favista.com/blog/2017/12/01/understanding-stamp-duty-rates-registration-charges-property/

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Understanding Stamp Duty Rates and Registration Charges on Property

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  1. O^^€ Q Menu ▼ Understanding Stamp Duty Rates and Registration Charges on Property ©December 1,2017 & Real Estate # property blog,property website blog, real estate, Real estate blog, real estate in india, real estate property blog, real estate property website blog,real estate website blog £ Srishti Chandola ifc Like 0 The government charges a tax when there is any transaction of property, i.e., when the property changes the hands, from a seller to a buyer. This tax is known as the stamp duty. It is the charge on commercial and residential property transactions and leasehold or freehold properties. The stamp duty is charged by the states and thus, the rate certainly varies from state to state. How to calculate the stamp duty amount The stamp duty ranges from 3% to 10% which depends on the slab decided by the particular state. The responsibility of paying stamp duty generally vests in the property buyer. Stamp duty is calculated on the higher value in between the ready reckoner rate or the circle rate as well as the agreement value of the property. For instance, the agreement of the property value is Rs 50 lakhs as well as the value as per the ready reckoner rate is Rs 40 lakh with the stamp duty would be calculated on higher value, i.e., Rs 50 lakhs. The stamp duty percentage certainly depends on various factors, like: ■ Status of property- no matter whether it is new or old ■ Location of property- city area, metropolitan area, rural area suburban, etc. ■ Age of owner- discount available for senior citizens, in some of the states ■ Gender of the owner- some states offer concessions for female realty owners ■ Usage of property- whether it is for residential or commercial use ■ Type of property- independent house, flat, etc. How id stamp duty paid? There are 3 ways to pay stamp duty through non-judicial stamp paper by franking the

  2. method or making use of the e-stamping method. Under non-judicial stamp paper method, the agreement details mentioned in much of the paper as well as signed by executants. Thus, within 4 months, it needs to be registered at sub-registrar’s office. Also, under the franking method, agreement printed on the plain paper. The paper is submitted to the authorized bank which processes the documents with the franking machine. In the states, one can also pay the requisite stamp duty amount online, through NEFT/RTGS. Thus, the stamp duty certificate with the details like stamp duty type, the date, etc. can certainly be downloaded for the registration process. What really happens if you can pay the inadequate stamp duty? In some of the cases for the stamp duty, people show an undervalued price of property in the agreement. Government suffers the loss of revenue due to the tax evasion. If you can pay inadequate stamp duty, then, one can be penalized heavily for evasion. The punishment, as well as the penalty for the stamp duty evasion, may actually vary from state to state. The penalty can range from the 8% to 20% of actual stamp duty with least penalty limits as well as imprisonment for certain periods as the rules of the state. How to save on the stamp duty charges? Some of the states give significant discounts on stamp duty for the female real estate buyers. Thus, if you are looking to save on the stamp duty, you can buy the property in name of the female family member. If you have shortlisted various locations for the purchase of property, you can compare on the stamp duty charges in several locations to decide the location proffering the lowest stamp duty value. Also, the realty fraternity has been demanding on the affordable housing be actually be exempted from the stamp duty charges. If this happens, the buyers in the segment can provide a substantial amount. At times, the developers agree to bear the stamp duty cost and registration charges. You, however, require being pretty careful that you don’t get charged for it in the direct ways. ^ Turn Your Unused Room into a Study Leave a Reply Your email address will not be published. Required fields are marked * Comment Name * Email * Website Post Comment

  3. Subscribe to our newsletter Want to be notified when our article is published? Enter your email address and name below to be the first to know. Send Facebook M * ii : n Like Page Favista Real n Estate Pvt Ltd 3 hours ago Let your light shine Favista Real Estate Pvt Ltd ■4 Like P Comment Share Twitter Timeline Tweets by @FavistaRealty Recent Blogs Understanding Stamp Duty Rates and Registration Charges on Property December 1, 2017 Turn Your Unused Room into a StudyNovember 30, 2017 Ways to Avoid Common Property DisputesNovember 29, 2017 How to Make the most of the Small BalconiesNovember 28, 2017 Is GST Revenue-neutral in Real Estate?November 27, 2017

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