What are Franking Charges?

1. O^^€ Q Menu ▼ WHAT ARE FRANKING CHARGES? What are Franking Charges? ©February 16, 2018 & Real Estate # Franking Charges real estate, india property blogs, property blogs, property website blogs, real estate blogs, real estateproperty blogs, real estate property website blogs, What are Franking Charges 1 Srishti Chandola ifc Like 0 The property purchase includes various small and big payments that have the potential to substantially jack-up the rates. For example, if one talks of home loan, they have to pay the processing fees to the bank. Also, one must have to bear the technical appraisal cost of property that bank would carry out. To make a legal purchase, the buyer has to pay the stamp duty depending on the state where the transaction takes places, charges may actually vary from 4 to 10% of value and registration charges typically 1% of complete value. What has caught the attention so far in fact that one may also have to pay the franking charges while stamping the papers to property. More importantly, if one thought that franking and stamping are same things, you actually thought wrong. What’s the difference? The stamp duty is the tax you actually pay to the state to buy a property. On the other hand, franking is the process to stamp the property documents. Using the franking, authorized banks stamp the document or affix the denomination on it which actually acts as the proof that stamp duty for the transaction has been paid. The banks and other authorized agents use the franking machine to affix the documents. Also, keep in mind- The authority franking the documents would actually ask to pay the price for giving the services. While some may do it for free, others may charge 0.1% of the complete purchase value as the franking charges. Thus, if you are purchasing a property which is worth Rs 50 lakh, one may have to pay the franking charges of Rs 5,000. You may, however, set off this amount against the stamp duty that you pay. For example, if the stamp duty is the state is 5.2%, you will have to pay 5.1% as the stamp duty if you are paying the franking charges of 0.1%.

2. ■ All banks or agents don’t authorize to offer the franking services. In case these have official permission, the banks at times have limited franking quotes as well as offer the services only for a specific hour of the working day. This basically means that prior preparation is required in the case you want to get the property documents franked from agent or bank. It is advised not to entertain these without being specific that the agent is authorized to do franking. ■ All the banks don’t follow similar rules when it comes to the franking and charges involved in the process. Charges and rules could differ from one state to another, from one agent to another and from one bank to another. ■ Importantly, it doesn’t just go for franking. You could choose to go for the e-stamping or alternatively buy the stamp papers to do so. Also, there are options to purchase papers that are already stamped. ^ What are Different Types of Co-ownership? Leave a Reply Your email address will not be published. Required fields are marked * Comment 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

3. n Like Page Favista Real Estate Pvt Ltd 41 minutes ago Which lifestyle are you looking for? ■A 2 P Comment Share Twitter Timeline Tweets by @FavistaRealty Recent Blogs What are Franking Charges? February 16, 2018 What are Different Types of Co-ownership?February 14, 2018 Ways to Give Your Home Close-to-nature LookFebruary 12, 2018 Sectors Bankable in GurgaonFebruary 9, 2018 The Legal Way to Construct or Reconstruct a Property in DelhiFebruary 7, 2018 Favista is a Real Estate Advisory Firm based in Gurgaon, India. Favista believes in making every property transaction experience simple and successful. The aim is to bring transparency, professionalism and simplicity to the complex world of real estate. Favista takes pride in keeping the needs and concerns of the customers in highest regards. Favista Real Estate has been founded by IIT + IIM/INSEAD alumni with experience in strategy consulting, internet marketing, venture capital having been part of companies such as McKinsey, Capital One, PartyGaming and SSG Capital. Favista is a full service brokerage helping buyers/investors buy, sell, rent or lease property in India. Favista offers best realty advice for Apartments and Flats for sale in India, land/plots for sale, New Residential & Commercial Projects in India and also assists selling properties at best rates. Favista.com is the only Property Site in India that lists 100% verified properties. Favista currently operates in Gurgaon, Delhi-NCR, Noida, Mumbai and Bangalore.Those intending to sell property in India will also find this website very useful owing to the extensive reach, high brand recall and trustworthiness in the real estate space. In order to make our customers happy and for us to reach our goals, we follow the key tenets of transparency and consistently maintain integrity in everything that we do. With this professional attitude, we are set to become your preferred choice for all real estate services in India. ABOUT About UsOur TeamCareerContact UsTerms Privacy PolicyDisclaimer

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