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1. What is meant by stamp duty?

Stamp Duty and registration charges are some of the preliminary requirements for purchasing a property. Stamp duty is a tax that is levied on a single purchase of property and it has to be physically impressed on the document concerned showing that the stamp duty has been paid.

Stamp Duty Calculation differs from state to state but they are usually 5-7% of the market value of the property. Stamp duty in Mumbai had been reduced to 2% till March 2021 due to the pandemic, but now reinstated back to 5% from April 2021. It also depends on the kind of property, commercial or residential, number of floors, and location. It is payable on sale deeds, conveyance deeds, and power of attorney papers. It should be paid on or before the date of executing a document. It can be paid through money order or DD within two months of the execution of the instrument.

2. Do I Need To Pay Stamp Duty On All The Documents Forming A Part Of A Property Transaction?

Stamp Duty on the property is usually paid on the market value of the property or the selling price of the property to the buyer whichever is higher. This is charged to facilitate the processing of legal documents needed to help with the transaction involved in buying a house. These documents include the sale deed, conveyance deed, and sale agreement. It is a tax paid on any document that is needed to create, extinguish or transfer liability or rights which is why stamp duty charges are paid on all documents that constitute this responsibility.

3. What property documents require stamp duty?

Stamp duty and registration charges are based on the number of documents that require the stamp duty. The Central Government levies stamp duty on the following documents-

  • Exchange Bills
  • Credit Letters
  • Promissory Notes
  • Debentures
  • Insurance Policies
  • Transfer of Shares
  • Proxies
  • Receipts
  • Lading Bills

Additional charges may be levied by the state government and it varies from state to state.

4. How And When Is The Stamp Duty Paid?

Stamp Duty calculation is an important part of the property registration process and can be done using a stamp duty and registration calculator online. It is payable on the property rate or the circle rate wherein the property is located, whichever is higher. These rates are fixed by the state government, therefore it varies from state to state. For example, for Maharashtra, the flat registration charges of properties worth over 30 lakh is 30,000 INR. Buyers have 14 days after the purchase of property to pay any stamp duty that is due.

5. How To Calculate Stamp Duty On Property Purchase?

Stamp duty charges on the property can be calculated easily using a property registration charges calculator online. Stamp duty calculation is done on the basis of the rates that are decided by the state government. For Mumbai, it is 5% of the property value. Factors that affect the stamp duty charges are the location of the property, type of property, usage of the property, etc. There are various stamp duty calculators available online which can easily determine the exact charges that are to be paid.

6. How is stamp duty paid?

Stamp duty on the property can be made through any mode which is convenient for the buyer.

  1. You can physically pay it in person, all these details are written on the stamp paper which can be bought from an authorized seller. All the relevant details regarding the property are noted on the stamp paper, and the value of the stamp paper is equal to the stamp duty available.
  2. You can make the payment through an authorized franking agent. Most banks have this facility. The property details are printed with the paper along with the relevant stamp duty charges and submitted to the bank. This service can be availed by homebuyers by paying the franking charge levied by the agent.
  3. You can also pay your stamp duty online by just logging into the SHCIL website. Register as a new user, and once the registration has been made, a link will be sent to your verified email address to complete the process.

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