Real Estatebuying and selling is not limited to the physical transfer of the property froma buyer to a seller. There are a number of taxes and charges that need to be inplace along with physical, as well as legal ownership of the property ismandatory to legalize any sale.
One of thecrucial things to keep in mind while buying any property is the Stamp Duty. Stamp Duty is similar toIncome Tax, the only difference being, Stamp Duty is levied on real estatepurchases. The amount that is paid to the seller guarantees the physicalownership of property, however, that is not enough. The property should beregistered in the buyer’s name in the local municipal records. For thisregistration of the property, the tax that is levied for buyers is nothing butthe Stamp Duty.
The amount to bepaid as Stamp Duty depends upon the size of the property and its value at thetime of registration, old or new properties in the same location can have thesame as well as varying Stamp Duties. It isfairly important to have a knowledge of Stamp Duty as it adds up to theall-over cost of the property. Stamp Duty is usually paid by the buyer howeverif a property exchange takes place, both the buyer and seller share the StampDuty.
Recently, theGovernment of India made an amendment to The Indian Stamp act 1899. These amendments were initiallyproposed under the Finance Act of 2019 and the Indian Stamp (Collection ofStamp-Duty through Stock Exchanges, Clearing Corporations, and Depositories)Rules, 2019 (Rules). The amendments are made to facilitate the ease of doing business andbring uniformity in the Stamp Duty payments. The amendments are not only forthe Stamp Duty rates but also for the process of levying or collecting stampduty. The rates of Stamp Duty have recently been revised by the governmentw.e.f 24.02.2021 as per the followingdetails:
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’ssay, if a unit is sold for Rs 48 lacs, the total expense for the stamp dutyand 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 tonote here that, this provision would apply only to multistore apartmentsexceeding 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 ofthe 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 ispayable under Section 3 of “The Indian Stamp Act 1899”. It is a tax that mustbe paid in full and on time, otherwise, it attracts a penalty. A stampeddocument is considered legally viable and is admissible in courts as well, adocument that is not properly stamped is not admissible by the court. It ispayable, a day before, on the day, or on the next day of document executioni.e. when the document is signed by the person in authority. Delay in paymentattracts a penalty of 2% per month and can range up to 200% of the amount ofStamp Duty.
All transferdocuments require to be stamped and hence a Stamp Duty, except for thetransfers based on Will. If you plan on investing your hard-earned money to be your future asset by buying ahome in the best location, Ashiana Housing Ltd is the brand you should trust becausewe at Ashiana housing not only ensures timely possession & amenity-embeddedresidential projects but as a brand we take pride for our hassle-free sales andpost-sales customer servicing! Ashiana Town (Sector 39, Bhiwadi,Delhi-NCR), Ashiana Surbhi (Sector 77, Bhiwadi, Delhi-NCR), AshianaTarang (Sector 24, Bhiwadi, Delhi-NCR) and Ashiana Dwarka(Near DPS, Pal-Sangriya Link Road, Jodhpur) areour 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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