stamp duty

TABLE OF FEES PREPARED UNDER SECTION 78 OF THE REGISTRATION ACT 1908.
1(a) Registration of documents in Books 1 and 4 Rs.p1. When the value does not exceed Rs. 200 .. 2.002. When the value exceed Rs.200; but not exceed Rs.300 .. 3.003. When the value exceed Rs.300; but not exceed Rs.400 .. 4.004. When the value exceed Rs.400; but not exceed Rs.500 .. 5.005. When the value exceed Rs.500; but not exceed Rs.600 .. 6.006. When the value exceed Rs.600; but not exceed Rs.700 .. 7.007. When the value exceed Rs.700; but not exceed Rs.800 .. 8.008. When the value exceed Rs.900; but not exceed Rs.900 .. 9.009. When the value exceed Rs.900; but not exceed Rs.1000..10.0010.When the value exceed Rs.1000; for the first Rs.1000..10.00as under sub clause (9) and for every Rs. 500 or part thereof in excess of Rs.1000 .. 5.0011. (i) For registration of Powers of Attorney given forconsideration authorising Attorney to sell the immovableproperty the Registration fee shall be levied on theconsideration mentioned therein.(ii) For registration of other Powers of Attorney ... ..50.00 Note:- In the Kanyakumari district and the Shencottah taluk ofTirunelveli district, no fee shall be charged for theregistration of sale certificates in the case of lands boughtin by Government or Sripanderaveka or Kandukrish or SreepadamDepartment under the provisions of the Revenue Recovery Act.(b) Unless it is specifically provided in variousarticles mentioned below, the consideration expressed in adocument shall generally be taken to be its value fordetermining the registration fees. Where no consideration isexpressed, value of the property dealt with shall be taken. In the case of conveyance, exchange, gift or release, theregistration fee shall levied on the value or amount on whichstamp duty under the Indian Stamp Act, 1899 (Central Act II of1899) is payable:Provided that in the case of deeds of conveyance,exchange or gift exempted from payment of stamp duty, theregistration fee shall be levied on the value or considerationmentioned in such documents: Provided further that in the case of document, the valuefor the purpose of levying registration fee shall be on thereduced value for which stamp duty is payable by virtue of thenotification issued u/s 9 of the Indian Stamp Act1899,(Central Act II of 1899)(c) The provisions of sections 5,6,20,21,23 and 25 of theIndian Stamp Act II of 1899 shall Mutadis Mutandis, apply tocalculation of value for the purpose of determining theregistration fee.(d) In the case of agreements to render service for hireor to let movable property for hire, the value of the documentshall not be taken at a higher amount than the hire for oneyear.(e) In the case of leases, the value shall be taken-(1) at the total rent for the whole term when the leaseis for one year or less;(2) at the average annual rent when the lease is forperiods exceeding one year;(3) at one-fifth of the whole amount of rents payable forthe first fifty years when the lease is perpetual. When afine or premium is paid or is made payable or money isadvanced, that amount also should be added to the value. Whenlessee undertakes to pay assessment, quit-rent, etc., inaddition to the rent the said payment should also be added tothe rental value. If the rent is payable in kind and itsmoney value is not specified in the lease,. its value shall betaken to be the highest amount which the stamp borne by thedocument shall suffice to cover. If the document is exemptfrom stamp duty, the money value of the produce rent shall becalculated at the current market rates; and(4) In the case of Kanom deed, fee shall be levied on thetotal consideration viz., the aggregate of the amountconsisting of the advance the premium or the present called"Manusham" in North Malabar and "Avakasam" in South Malabar,the annual rent reserved and the ascertained amount ofcompensation, if any, for improvements.(f) In the case of deeds of partition, the value of theseparated share or shares on which the stamp duty is payableshall be taken as the value for consideration.(g) In the case of a document in which the transaction isnot susceptible of money valuation, the fee leviable shall beRs.100/-Note:- In the case of documents evidencing petty transactions,incapable of valuation, the Inspector General may, if heconsiders that the levy of fee of Rs.100/- would be productiveof hardship, authorize registering officers, to levy a lowerfee, which however shall not be less than Rs.10/-.(h) The registration fee leviable upon a documentpurporting to give a collateral or auxiliary or additional orsubstituted security or security by way of further assurance,where the principal or primary mortgage is proved to thesatisfaction of the registering officer to have been dulyregistered shall be the same as for the principal or primarymortgage if the same does not exceed Rs.10/-; otherwise itshall be Rs.10/-.(i) The registration fee leviable upon documentacknowledging receipt of payment of consideration on accountof any previously registered document and upon any receiptacknowledging payment of a debt or rent due under thepreviously registered document shall be ad valorem asprescribed in Article 1(a) subject to a maximum of Rs.20/-(j) When a duplicate or counterpart of a document ispresented for registration on the same day as the originaldocuments registration fee for such duplicate or counterpartshall, if the original document be also registered, be-(1) for each duplicate a fixed fee of rupees Rs.20/-(2) for the counterpart, the rate prescribed forcertified copies;Provided that if the rate of Rs.20/- or the copying feeis higher than the ordinary fee for registration, the lattershall be charged.l) The registration fee leviable on an agreement to sellor resell shall be on the advance or earnest money. If noadvance or earnest money is mentioned, the fee leviable shallbe on the intended sale or the resale amount, as the case maybe:Provided that in the case of an agreement to sell wherepossession is handed over or is to be handed over, the feeleviable shall be on the intended sale consideration.(m) The Registration fee on a document purporting torectify an error which by itself creates, transfers, limits,extends, extinguishes or records right, shall be leviable onthe value or amount on which stamp duty under the Indian StampAct, 1899, (Central Act II of 1899) is chargeable on theinstrument of rectification.Provided that in the case of documents which do not fallwithin the definition of sub-section (14) of section 2 of theIndian Stamp Act 1899 (Central Act II of 1899), the fee shallbe leviable on the value of amount of the original document atadvalorem rates prescribed in Article 1(a), subject to amaximum of Rs.10/-(n) The Registration fee leviable for a supplemental orratification deed falling under Section 4 of the Indian StampAct 1899 (Central Act II of 1899) shall be the same as the feeleviable on the value of the original document at advaloremrates prescribed in Article (1)(a) subject to a maximum ofRs.10/-(o) The Registration fee for a deed of cancellation orrevocation shall be that leviable on the original document,subject to a maximum of Rs.50/-Provided that in the case of cancellation or revocationof deeds of agreement to sell which involves handing over ofthe possession of the property, the fee shall be leviable onthe consideration (intended sale amount) as expressed in theoriginal deed of agreement to sell.(p) Transfer of leases or surrender of leases shall beassessed to registration fee on the amount of considerationincluding the value of improvement, if any, set forth in suchdocuments when no consideration or value of improvements,expressed, the fee chargeable on the original lease shall berealised.(q) In the case of dissolution of a partnership, thevalue of the net assets of the partnership on the date ofdissolution shall be taken as the value for registrationpurpose.Note: "Value" means the value set forth in the document.(r) In an agreement regarding their use of wall or wellor pathway as the case may be the registration fee shall belevied on the value of the ;property set forth in thedocument.(s) The full fee shall be levied for the registration ofa document which is effected under section 24 of theRegistration Act.When it is directed on appeal that a document which hasbeen registered as regards some of the executants and refused registration as regards others shall be registered also asregards the latter, a second registration fee shall be leviedwhen the document is presented again for registration butcopying fee at the rate prescribed in clause (1) of Article 14of the table of fees for the portion to be copied by theDepartment shall be levied.Note: If the copying fee calculated or arrived at fallsfraction of a rupee, it shall be rounded off to the nearestrupee.2. Filing a translation (Section 19)-An extra fee of .... Rs. 10.003. 1) Registration by a District Registrar under section30(1) unless the document is registered in consequence of theSub-Registrar being a party interested in the transaction towhich such document relates-Extra Fee of .... Rs. 50.002) Registration by the Registrar of Chennai under Section 30(2)-Extra fee of Rs.100.00Note:- no additional extra fee shall be levied under Clauses(1) and (2) for the registration of a counterpart or aduplicate of a document in respect of which the extra fee hasbeen paid if such counterpart or duplicate is presented forRegistration on the same day as the original document, whenthe original document is also registered.4. Copies and memoranda under Section 64 to 67-1) for each memorandum required .. .. Rs. 10.002) for forwarding each copy of a document under Section 65,66 and 67 .. .. Rs. 10.005. Registration of Will and authorities to adopt (Book 3)-1) Opening a sealed cover and entering the contents in the Register .. Rs. 50.002) Will or authority to adopt presented open Rs.500.00Provided that in the case of Wills in which the value ofthe property dealt with is mentioned and that value does notexceed Rs.50,000/- the registration fee shall be as per advalorem scale in Article 1(a).Provided further that in the case of duplicates of Willor authority to adopt presented open along with the originaldocument, registration fee for each duplicate is Rs.10 or theordinary fee for registration for such original documentswhichever is less.6. Sealed cover (Book V)-1) Deposit of a sealed cover purporting to contain a will .. Rs.200.002) Withdrawal of any such sealed cover .. Rs. 50.007. Attesting Powers-of-Attorney--1) Special power .. .. .. Rs. 20.002) General power .. .. .. Rs. 20.00Note:- 1) A single fee shall be levied for the attestation ofa Power-of-Attorney whatever may be the number of signatoriesto it, provided that all of them appear simultaneously forexamination. Where they do not so appear a separate fee shallbe levied for each set of persons appearing at the same time.2) The duplicate or the triplicate of a Power-of-Attorneypresented for authentication shall be treated as a separatepower and a separate attestation fee levied thereon.8. Issue of commission or attendance at a privateresidence or jail-1) For every attendance at a private residence-a) for registration of one or more documents executedby one and the same individual, orb) for the acceptance for registration of one or more documents executed in favour of one and the same individual, or for the acceptance for deposit of a Will executed by an individual, orc) for the attestation of one or more Power-of-Attorneyexecuted by one and the same individual, ord) for the examination of one and the same individualunder Section 33 or 38, there shall be paid, besidestravelling allowance, an extra fee of Rs.200/-2) For attendance at a jail-a) for registration of one or more documents executedby a person confined in a jail, orb) for acceptance of one or more documents executed inhis favour or for acceptance for deposit of a Willexecuted by him, orc) for attestation of one or more Powers-of-Attorneyexecuted by such person, ord) for examination of such person under Section 33 or38, the fee to be paid, besides travellingallowance, shall be Rs.25/-3) For the service of a female, if required, a further feof Rs.10/- shall be paid;Provided that where two or more persons who are partiesto the same document and who are entitled to exemption fromattending the registration office reside together, or when twoor more persons who are parties to the same document areconfined in a jail, only one attendance or commission feeshall be charged so far as those persons are concerned. Inthe event each such person shall be entitled to present forregistration or attestation at such attendance any number ofdocuments are Power-of-Attorney or to admit execution of anynumber of documents presented for registration, or to deposita Will without payment of any further attendance fee.Note:- A Registrar may, in his discretion, remit the feesunder (1) (2) and (3) when it appears to him that theirexaction would be productive of hardship or if he is satisfiedon enquiry, that any particular case is one of povertycombined with real purdanashin gosha.9. No fee shall be levied for the safe custody of anydocument or a Power-of-Attorney which remains unclaimed forten days after registration of the document is effected orrefused or after the Power-of-Attorney is attested and forevery subsequent ten days or part thereof after such firstperiod calculated from the date on which the document orPower-of-Attorney, as the case may be, is ready for delivery afee of Rs.1 (Rupee one only) shall be levied provided that themaximum fee leviable under this article shall not exceed Rs.10(Rupees ten only)Note:- A Registrar is empowered in his discretion to remit, inwhole or in part, fees leviable under this article by himselfor by Registering Officers subordinate to him in cases inwhich it appears to him that their exaction would beproductive of injustice or hardship.10. The fees for serving summons issued and for theremuneration of executants and witnesses summoned underSection 36 of the Indian Registration Act, 1908, shall beregulated according to the scale prescribed for Small CausesSuits, in Chapter I of the Part II and in sub-rule (3) of Rule50 in Chapter II of Part I, respectively in the Civil Rules ofPractice and Circular Orders, Volume I. The fees forprocesses issued by Registrars under Section 75 shall belevied according to the scale in force in the Principal Courtof Original Civil Jurisdiction.11. (1) For proceeding to and returning from a privateresidence or a jail, a Registering Officer may levy actualtravelling expenses, for himself, as well as a peon when thelatter accompanies him.(2) For journeys by railway, such actual travellingexpenses shall not exceed the fare of the class to which theRegistering Officer is entitled under the Madras TravellingAllowance Rules and in the case of a peon the fare of thelower class.(3) For journeys by road, actual travelling expensesshall be subject to the undermentioned minimum and maximum:-OFFICER Minimum Maximum ratePayable per kilometreRs.P Rs.PDistrict Registrar 3.00 1.00Sub-Registrar 2.00 0.60(4) Besides the actual travelling expenses levied underclause (1) (2) or (3) above, a fixed fee of Rs25 (Rupees twenty fiveonly) in the case of District Registrar, Rs.15 (Rupees fifteenonly) in the case of Sub-Registrar and Rs.5 (Rupees five only)for the peon accompanying them shall also be levied for everyattendance at a private residence or jail.(5) No travelling allowance shall be levied when theRegistering Officer performs the journey in respect of thewhole distance in a conveyance provided by the party.(6) When a Registering Officer attends at the same timeat two or more residences in the same village, the amount oftravelling allowance to be levied from all the applicantsshall be as for a single journey as shall be recovered inequal shares from the several applicants.12. Any person deputed by a Registrar or Sub-Registrar tomake an examination at a private residence shall be allowedtravelling allowance at the rate of 20 Paise a Kilometre.13. (1) Search for or inspection of a single entry ordocument-For the first year in the books of which search is made, for each entry or document Rs.10.00For every other year in the books of which search is continued, for each entry or document Rs. 5.00(2) General search for or inspection of any numberof entries or documents relating to one and the sameproperty, or executed by or in favour of one and thesame individual-For the first year in the booksof which search is made Rs.15.00For every other year in the books of which search is continued Rs. 5.00Provided (1) that a fixed fee of Rs.2 only shall becharged without reference to the number if years in the booksof which search is made, when a general search is made on theapplication of a public officer with the view to granting anencumbrance certificate (a) in respect of property offered assecurity by a public servant for the due performance of hisduties, and (b) to test the property qualification required ofan extra-departmental Postmaster, whether at the time of hisappointment or subsequently, and (c) that when a generalsearch is made on the application of a person for the grant ofa certificate in connection with the grant of an agriculturalloan under the provisions of the Takkavi Manual in respect oflands situated within the jurisdiction of a village panchayat,the rate of fees to be charged shall be as follows:General Search for or inspection of any number of entriesor documents relating to one and the same property or executedby or in favour of one and the same individual:For the first year in the books of which search is made Rs.15.00For every other year in the books of which search is continued Rs. 5.00Note:- Fees at the confessional rates in this Sub-clause shallbe leviable only if the application is forwarded by the PublicOfficer concerned to the Registering Officer with anendorsement stating that the application is made for obtainingan agricultural loan under the provisions of the TakkaviManual.(2) (a) That when a general search is made on theapplication of a public officer no fee shall be charged inrespect of encumbrance certificate granted in connection withthe grant of loans under the Agricultural Loans Act, 1884 (XIIof 1884) as amended by the Madras Act XVI of 1935 for therelief of indebtedness, under the Madras Cottage IndustriesLoans and Subsidy Rules, 1948.(b) That in the Kanyakumari District and theShencottah Taluk of Tirnulveli District, no fee shall becharged when a search is made with a view to grant encumbrancecertificate for purposes connected with loan under the LandImprovements Loans Act or for purpose connected withinvestment under the Workmen's Compensation Act or on theapplication on behalf of the Sripadam.Note:- (1) For the purposes of Clause 2 of Article 13, thedetermination of one and the same property, shall be withreference to the ownership at the time of the application forthe certificate of encumbrance but the following may, in eachcase, be treated as one and the same property.(i) A single survey field or a house owned by more thanone person;(ii) Lands used for wet and dry cultivation situated inthe same village and owned by one person or jointly by two ormore persons; whether the parcels are contiguous to oneanother or not;(iii) a field or a garden and the house situated in it ;and(iv) buildings or houses described as being situatedwithin the same four boundaries and forming together oneproperty.(2) Every application for the continuance of a searchmade after one week from the date of completion of that searchwill be treated as a fresh application and the higher fees ofRs.5 and 7 respectively, will be charged for the first year inthe books of which the search is desired to be continued.(3) Every application for the grant of a certified copy,unless made at the time of registration of a document, shallbe considered as an application for search and chargedaccordingly, provided however, that a second search fee shallnot be levied for granting copies of entries found in thecourse of a single or general search for which proper searchfees had been levied, if the applicant mentions in theapplication the number and year of the entry, the names ofparties, and the nature of the document.(3-A) Notwithstanding anything contained in sub-clause(ii) of clause (1) of the note, in the case of applicationsfor encumbrance certificates made by Primary Co-operative LandMortgage Banks or sponsored by the Extension Officers (Co-operation)on behalf of such banks in connection with the grantof loans for the sinking of wells and installation ofpumpsets, lands owned by one person or jointly by two or morepersons whether the parcels be contiguous to one another ornot, lying in more than one village shall be treated as 'oneand the same property', if such villages are within the sameregistration sub-district.(4) The Inspector-General of Registration may, in hisdiscretion, remit in part the fee leviable under this articlewhen it appears to him that the exaction of full fee would beproductive of hardship.14. Making or granting copies of reasons, entries ordocuments for the benefit of any person-(a) When such copies are made by copying machine-(i) for a copy of a page containing words 300 .. Rs.2.00 per page subject to minimum of Rs.5(ii) for a copy of a page containing words 500 .. Re.0.40 per page subject to minimum of Rs.5(b) In other cases for every 100 words or part thereof Rs.1.00Note:- In reckoning the number of words, every figure, initialor abbreviation shall count as a word.(c) For granting of a copy of the map forming part of a registered document without the help of aDraughtsman or Surveyor by the Registering Officer Rs. 3.00(d) For granting a copy of the map forming part of a registered document with the help of a private Draughtsman or Surveyor(i) if the measurement of the map does not exceed 60 cm x 50 cm .. Rs. 5.00(ii) If the measurement of the map exceeds 60 cm x 50 cm ... Rs.10.00(iii) For certifying the copy of the map prepared either by the Registering Officer or by a private Draughtsman or Surveyor. Rs. 2.00Note:- Government Officers who may require to search theregisters and to take copies of entries for bona fide publicpurposes shall be permitted to do so without payment of anyfee.(3) in the case of copies of maps or plans, a reasonablefee to be specially fixed by the registering officer:(a) Provided that when there is present in the registrationoffice a clerk conversant with a vernacular language referredto in clause (2) of this rule, the charge for copies of documents in such vernacular language shall be the same as that prescribedby clause I;(b) Provided also that in calculating the charge to be madefor copies of entries of documents at the rates prescribed, it shallnot be necessary unless, the applicant challenges the accuracy of the charge made, actually to count the number of words in such entries ordocument but the charge may be made on reasonable estimate framed by theregistering officer of the number of words which the entries or documentsare considered to contain.Note: Government officers who may require to search the registerto take copies of entries for bonafide public purpose shall be permittedto do so without payment of any fee.In the Kanyakumari district and Shencottah taluk of Tirunelveli district, Sreepadam officers who may also require to search the registersor to take copies for bonafide Sreepadam purposes shall be permitted to soso without payment of any fee.(4) Where an applicant presents a printed or typed copyof a document already registered and applies for a certifiedcopy of the same, only the portion added in manuscript in thecertified copy shall be charged for at the ordinary rates forcopying, and, in addition, a fixed fee of 50 paise shall belevied for comparing and certifying each copy.(5) That no such copying fees shall be charged in respect ofan application applied for by the investigating officers of theDirectorate of Vigilance and Anti Corruption, Kerala.15. In addition to the fees payable under Articles 13 and14 a fixed fee of Rupee one shall be charged in respect ofevery application made to Registering Officer for aninspection, a search or a copy or extract of any document onrecord in a Registration Office.16. A fixed fee of Rs.100 shall be levied-(a) for the presentation of each Appeal under Sec. 72 onapplication under Sec. 73 against the orders of a Sub-Registrar refusing to register a document;(b) for an enquiry under Sec.74;(c) for an enquiry by a Sub-Registrar invested with thepowers of a Registrar under the second provision to Sub-section (3) of Sec. 35 in respect of documents, the executionof which is denied;(d) for an enquiry under Rules 58 of the rules made under[Athe Indian Registration Act, 1908; and(e) for an enquiry under Rule 69 of the rules made underthe said Act.17.(1) A fixed fee of Rupees Ten shall be levied inrespect of the following-(a) for each application made to a Sub-Registrar underSection 25(2) and 34(4);(b) for each application made to a Registering Officerunder Section 36 for enforcing the appearance of executantsand witnesses;(c) for filing a translation of Power-of-Attorneyproduced by an agent with or in connection with a documentpresented for registration when a Power-of-Attorney is writtenin a language not commonly used in the District-Rule 15(ii);(d) for filing special Power-of-Attorney produced with orin connection with a document presented for registration-Rules46(i) and (iii);(e) for each notice of revocation of a Power-of-Attorneygiven to a Registering Officer and for each intimation of thesame sent to such other Officers as may be specified by theperson revoking the power-Rule 52(ii)(b);(f) for each application for the return of a Willregistered or refused to be registered and transmitted to theRegistrar's Office for safe custody-Rule 75(ii);(g) for each petition presented to a Registering Officerobjecting to the return of a document to a person in whosefavour the receipt has been drawn up-Rule 106;(h) for each application claiming remission or refund of-(i) the fine levied under Sections 25(1) and 34(1);or(ii) fees levied in connection with the registrationof a document, the search for grant of copiesor Encumbrance Certificate or attendance at theprivate residence or Jail;Provided that the fee shall be levied in the casesreferred to above only when the amount to be refunded orremitted exceeds Rs.5.00Note:- In the case referred to in items (c) and (d) above, thelevy of fee should be restricted to cases in which the Power-of-Attorney has not been registered or attested by aRegistering Officer.(2) A fixed fee of Rupees Twenty shall be levied-(a) for each petition presented to a RegisteringOfficer protesting against the registration of a document.Note:- No fees shall be levied on petitions from Secretariesof District Sailors'. Soldiers, and Airmen's Boards contestingalleged illegal sales of Soldiers' lands.Provided that in cases falling under clause (a) if protestis made against the registration of more than one document thefee payable for the petition shall be calculated at the rate of Rs.2.for each of such docts specified in the petition if the number of documents specified in the petition and if the number of documents is not specified in the petitiona fee of Rs.10. shall be levied for the petition(b) for each petition presented to a RegisteringOfficer-(i) for withdrawing a document fromregistration;(ii) for complete or partial refusal toregister a document; and(iii) for keeping a document pending either forappearance or parties executing it or forcompliance by the parties to documentany of the requirements of the law forthe time being in force.(3) (a) A fixed fee of Rs.200 shall be levied for eachapplication presented to a Registering Officer to accept adocument for registration at his office on a Holiday on theground of special urgency-Rule 4.(b) A fixed fee of Rs.200 shall be levied for eachapplication presented to a Registering Officer to accept asealed cover purporting to contain a Will for deposit underSection 42 on an authorised Holiday on the ground of specialemergency-Rule 4.(c) A fixed fee of Rs.200 shall be levied for eachapplication presented to a Registering Officer to accept aPower-of-Attorney for attestation only or for attestation andregistration at his office on a holiday on the ground ofspecial emergency-Rule 4.




WHAT is stamp duty? Why should it be paid and by when?It is a tax and must be paid in full and on time. A delay attracts penalty at 2% per month, subject to maximum penalty of 200% of the deficit amount of stamp duty. Documents lodged with the sub-registrar/superintendent of stamps prior to any amnesty scheme attract a lump sum reduced penalty. Documents not properly stamped are not admitted in court as evidence. It is payable before execution of the document or on the day of execution of document or on the next working day. Execution of a document means putting signatures on the instrument by persons party to the document.
Who pays?In the absence of an agreement to the contrary, the purchaser/transferee has to pay or in case of property exchange, both parties have to bear it equally.
On what instruments does stamp duty have to be paid?Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under Indian Stamp Act, 1899). Except transfer by will (or by original nomination in a co-operative society) all transfer documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and licence agreement, agreement of tenancy, lease deeds, power of attorney to sell for consideration etc. have to be properly stamped. When a nominee transfers the flat subsequently in the name of legal heir, such transfer also requires stamp duty.
If you have purchased a flat in a co-operative society on or after December 10 1985, you have to pay stamp duty on market value as per the Ready Reckoner, issued every year in January.
1.This is a public document, available in any law bookshop. Market value is the value as worked out as per the Stamp Duty Ready Reckoner or the consideration stated in the instrument, whichever is higher. As per a new amendment in the Income Tax act, market value for the purpose of capital gain tax is the same as the market value for stamp duty payment.
How is a flat defined?A flat means a separate and self-contained set of premises used or intended to be used for residence, or office, or showroom, or shop or godown or for carrying on any industry or business (and includes a garage), the premises forming part of a building and includes an apartment.
In whose name is the stamp paper required to be purchased?Stamp papers are to be purchased in the name of one of the parties to the document, otherwise such agreement will be treated as if no stamp paper was used. However, it will not make the agreement invalid and can be enforced in Law if proper duty is paid subsequently. Stamp paper is valid for six months from the date of purchase.
What is a revenue stamp?It is a tax of Re.1 in the form of revenue stamp, which should be affixed on receipt for any money or other property, the amount or value of which exceeds Rs. 5,000.
Is stamp duty payable on the instrument or transaction?It is payable on instruments. If any information essential for working out stamp duty is missing, the valuation officer can call for it. Information such as the Carpet or Built-up area, number of floors in the building, year of construction, name of Division/Village and C.S./C.T.S. number of plot of land, must be recorded in the agreement for quicker response.
What is the rate of stamp duty?Stamp duty on non-residential properties whether in a co- operative society or not is at a flat rate of 5% of the market value. Stamp duty on residential flats in a housing society and buildings covered under Article 25(d) of Schedule I of Bombay Stamp Act. 1958, attracts concessional rates depending upon its market value as follows: Upto Rs. 1,00,000 stamp duty is nil Between Rs. 1,00,001 to Rs.2,50,000, it is 0.5% of the value. Between Rs. 2,50,001 to Rs.5,00,000 Stamp duty is Rs. 1,250 + 3% of the value above Rs.2,50,000. Above Rs.5,00,000 stamp duty is Rs.8,750 + 5% of the value above Rs.5,00,000.
What precautions should one take to avoid practical difficulties later?Generally one copy of the exchange agreement is made and registered and then there are various practical problems.
The following precautions should be taken to avoid complications. - Assuming there is one ‘Flat-A’ owned by ‘Person AA’ and he wants to exchange it with ‘Flat-B’ owned by ‘Person BB’. In the Exchange Agreement there should be a clause where it states that original agreement will be considered original agreement for ‘Flat-A’ and will remain with it’s new owner ‘Person BB’ and second copy will be considered original agreement for ‘Flat-B’ and will remain with its new owner ‘Person AA’. - Agreements should be made in duplicate. The original agreement will be charged with full stamp duty and second copy will be charged only with Rs.20. - Both agreements must be registered. The original agreement will be charged full registration fees and second copy will be charged a nominal amount. - Both the persons must keep their respective copies and will be free from each other in all respects