Stamp Duty is basically a transactional tax that has to be paid when there is any nature of transaction related to properties. It is also good to know no property transaction deemed to be legal if such tax is not paid to government offices. The market value or the agreement value of the property determines the amount of the tax. It is good to pay the full tax timely to avoid any nature of harassment. It is always wise to pay Property Stamp Duty as nonpayment attracts penalty.


img When Have Such Tax to Be Paid

Whenever there is a change of ownership of any property or there is transfer, limitation, extinction, extension or record of any right and liability there is an occasion when such tax needs to be paid.


img What Is the Rate of Such Tax?

The rate of such tax varies from state to state. According to the Article 25 of Schedule 1 of Bombay Stamp Act 1958 the normal rates are 8%, 6%, 5%, 3% and the like. The rate depends on where the property is situated.

Again according to the Maharashtra Stamp Act 1958, there is an additional 5% tax to be paid by purchasers who purchase properties within the limit of Municipal Corporation of Mumbai. Again 6% additional tax is payable when the property is within the TMC limit.


img The Stamp Duty Calculation

Now it is not tedious to know the stamp duty that has to be paid on your property. You can easily find the market value of your property and the corresponding stamp duty from the Ready Reckoner. There are certain things that you have to know like the place of the property, C.S or C.S.T. number to know the valuation zone and sub-zone from the Stamp Duty Guide.

The guide will give you the rate per square meter and then you have to do the Stamp Duty Calculation depending on the square meter area of the property. Paying an adjudication fee of Rs. 100/- you can know the value of the property and its market price. If a document is signed but not adjudicated within one month then it will be such that a penalty at the rate of 2% per month is to be paid. On the other hand, if an adjudicated document is left unsigned it is valid for six months or until 31st December whichever is earlier.


img Who Is To Pay the Stamp Duty and What Is the Penalty

In the absence of any agreement the purchaser has to pay it and if there is an exchange then both the parties have to pay it equally. If it is seen that any authority has not properly stamped a document then it causes penalties to be paid. If the stamp duty is not paid within the time then one may have to pay penalty at the rate of 2% per month. According to the law enforced from 01.05.2001, the maximum penalty can be 200% of the deficit stamp duty amount.

So, it is always better to know your stamp duty and pay it on time to avoid any harassment.


Our Services