Buying or planning for making a purchase of a house is one of the biggest financial decisions that one makes in his/her life. No one can sense that overwhelming experience except you in both ways financially and emotionally. While buying a house we enquire about so many things. We check the property, home loan, and interest rate on loan, make down payment and sign the sale agreement etc. Once the possession of property gets done and property is being transferred to you. Now it’s your responsibility to get it registered in your name.
Legal evidence of property is also important as possession is just a physical transfer of property and it is not sufficient at all. To get the legal evidence you have to register the property in your name in the local municipal record. While registering for the property you have to pay a stamp duty tax. As it’s a legal tax on property transaction. Now let’s understand the importance of stamp duty and its aspects.
Well, Stamp Duty is nothing but a government tax for all legal property transaction. It is a type of tax collected by the government under its jurisdiction for a transaction of property. Stamp Duty is paid under the provisions of section 3 of the Stamp Act, 1899. The types on the property on which stamp duty is applied could be flats to commercial units, freehold or leasehold from land, independent house. And paper remains valid for 6 months, provided the stamp duty is paid without any delay, however, in general, it is paid by purchasers.
While registering the property in your name legal evidence is mandatory. For this buyer has to register their name in the municipal record. At the time of registration buyer of the property pays a stamp duty. Also, this is for your notification that the charges of stamp duty may vary from state to state. Also, depending on the type of property (old or new) stamp duty will be applied.
Rates of stamp duty vary from state to state across the country. However, the stamp duty rates of specific instruments are fixed by the Central government. If there is any delay in the payment of stamp duty then there will be attractive 2%penalty charges on a monthly basis.
In case of exchange of properties, both purchaser and transferee have to bear stamp duty equally. And in the absence of any document, on the contrary, the transferred or purchaser has to pay stamp duty.
Following are the documents required for stamp duty.
- Transfer instruments
- Deed of partition
- Certificates of sale
- License agreement
- Gift deed
- Tenancy agreement
- Power of attorneys
- Re-conveyance of the mortgaged property
- Exchange Deed
- Lease deeds
- Mortgage deed