Real Estate buying and selling is not limited to the physical transfer of the property from a buyer to a seller. There are a number of taxes and charges that need to be in place along with physical, as well as legal ownership of the property is mandatory to legalize any sale.
One of the crucial things to keep in mind while buying any property is the Stamp Duty. Stamp Duty is similar to Income Tax, the only difference being, Stamp Duty is levied on real estate purchases. The amount that is paid to the seller guarantees the physical ownership of property, however, that is not enough. The property should be registered in the buyer’s name in the local municipal records. For this registration of the property, the tax that is levied for buyers is nothing but the Stamp Duty.
The amount to be paid as Stamp Duty depends upon the size of the property and its value at the time of registration, old or new properties in the same location can have the same as well as varying Stamp Duties. It is fairly important to have a knowledge of Stamp Duty as it adds up to the all-over cost of the property. Stamp Duty is usually paid by the buyer however if a property exchange takes place, both the buyer and seller share the Stamp Duty.
Recently, the Government of India made an amendment to The Indian Stamp act 1899. These amendments were initially proposed under the Finance Act of 2019 and the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations, and Depositories) Rules, 2019 (Rules). The amendments are made to facilitate the ease of doing business and bring uniformity in the Stamp Duty payments. The amendments are not only for the Stamp Duty rates but also for the process of levying or collecting stamp duty. The rates of Stamp Duty have recently been revised by the government w.e.f 24.02.2021 as per the following details:
For units having sale consideration up to 50 lacs only:
The stamp duty has been reduced by 2% percent and is valid up to 30.06.2021 only. The rates would remain the same for all applicants whether male, females, joint applicants, company, etc. Let’s say, if a unit is sold for Rs 48 lacs, the total expense for the stamp duty and registration charges would be Rs 4,22,720/-, now it would be Rs 2,97,920/-. Now Saving is Rs.1,24,800/- (Approx).
Important to note here that, this provision would apply only to multistore apartments exceeding 4 floors.
For units having sale consideration above 50 lacs: No change
The DLC rates have also reduced by 10%: Due to the reduction in DLC rates, there would be no change in the calculation of stamp duty and registration charges applicable on our projects because the sale consideration on which stamp duty is paid is higher than the evaluated value as per DLC rates.
For a registered agreement to sale rebate adjustment in sale deed of 0.5% has been extended 3 yrs to 5 yrs.
The details of the calculation of stamp duty and registration charges are as under: –
|Heads||Previous rates||Previous rates||Revised rates (valid upto 30.06.2021 only)|
|Applicable on||Male applicant, Joint applicants (including male & female joint applicants, Company, HUF etc (except female individual applicant)||Female applicant||All kinds of applicant (Male applicant Female individual applicant, Joint applicants (including male & female joint applicants, Company HUF etc|
|Sales consideration of the unit||Any amount||Any amount||Upto 50 lac only|
|Stamp duty||6% of the total sale consideration||5% of the total sale consideration||4% of the total sale consideration|
|Surcharge||30% of the stamp duty i.e. 1.8% of the total sale consideration||30% of the stamp duty i.e. 1.5% of the total sale consideration||30% of the stamp duty ie 1.2% of the total sale consideration|
|Registration Fees||1% of the total sale consideration||1% of the total sale consideration||1% of the total sale consideration|
|CSI & Service Charge||Rs 320/- (approx.)||Rs 320/- (approx.)||Rs 320/- (approx.)|
|Total stamp duty and registration||8.8% + Rs 320||7.5% + Rs 320||6.2% + Rs 320|
Stamp Duty is payable under Section 3 of “The Indian Stamp Act 1899”. It is a tax that must be paid in full and on time, otherwise, it attracts a penalty. A stamped document is considered legally viable and is admissible in courts as well, a document that is not properly stamped is not admissible by the court. It is payable, a day before, on the day, or on the next day of document execution i.e. when the document is signed by the person in authority. Delay in payment attracts a penalty of 2% per month and can range up to 200% of the amount of Stamp Duty.
All transfer documents require to be stamped and hence a Stamp Duty, except for the transfers based on Will. If you plan on investing your hard-earned money to be your future asset by buying a home in the best location, Ashiana Housing Ltd is the brand you should trust because we at Ashiana housing not only ensures timely possession & amenity-embedded residential projects but as a brand we take pride for our hassle-free sales and post-sales customer servicing! Ashiana Town (Sector 39, Bhiwadi, Delhi-NCR), Ashiana Surbhi (Sector 77, Bhiwadi, Delhi-NCR), Ashiana Tarang (Sector 24, Bhiwadi, Delhi-NCR) and Ashiana Dwarka (Near DPS, Pal-Sangriya Link Road, Jodhpur) are our current projects giving-out fresh offers with new rebated stamp duty rates.
To know more about these projects, please click here:
Ashiana, Ashiana Housing build homes. Homes surrounded by vast green spaces and fresh breeze. Homes cocooned in secured gated complexes. Homes where futures are forged and there are opportunities to grow. And Homes in environments brimming with healthy activity, trust and respect. At heart, we build communities with care.
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