Stamp Duty Explained for the first Time Home Purchaser
In case you have been in India for long enough or have completed any key transactions right here, then you know about stamp papers. A stamp paper or even a revenue stamp paper is definitely an official document used when legally registering a transfer of assets. In case you are getting property, it is important for you to register your self because the owner of your property, or else who is to say that you actually purchased it? Get additional facts about Learn more
This registration with the property will officially record this transaction within the books of the local government municipality. The government has created the usage of stamp papers mandatory in such transactions so that it really is much easier to track changes in ownership. In the procedure of using this stamp paper to register the property in your name, you will have to spend a tax called stamp duty for the government just before completing the transaction.
The method of purchasing a property is very simple. Once you have your stamp paper, sales deed, and other property getting documents in spot, verify the market price tag of your property, agree on a sale value then pay the stamp duty. Following which you are able to execute the deal.
To pay the stamp duty charge for the government, you will have to visit the sub-registrar office with the state in which the property is situated, and spend the stamp duty there. The cost of just how much to pay for your stamp duty will depend on the marketplace cost with the property, as in, it will likely be a percentage of the industry worth in the property.
The stamp duty charges differ from state to state. On typical, you will have to spend around 5 to 8 % in the property value in tax. In India, the purchaser is usually expected to spend this fee, but that is negotiable with all the seller. In some cases, the seller pays this charge. There are actually also some cases where each the buyer and seller jointly pay this fee.
Most states in India charge a number of % much less in the event the purchaser is actually a woman. For properties which can be jointly purchased by a lady in addition to a man, you'll find unique rates for some states, normally a middle point amongst the two rates.
If for some reason you purchase a house and have not paid the stamp duty charge for it, then you are liable to spend a penalty of 2% with the payable quantity every month that you just delay, moreover to the payable quantity. This reaches to a maximum of 200% of a penalty if you leave it for as well long.
The stamp paper that is used within this method must be bought in the name of your purchaser or the seller. If it was not bought within the name of any with the two parties involved within the deal, then the stamp paper will drop its worth in six months.
Recently, the governments of a couple of states in India have established online stamp duty payment solutions, which make this procedure easier and time helpful. As a result, that is also something you'll want to look out for when paying your stamp duty.