What is stamp duty? Why should stamp duty be paid?It is tax, similar to sales tax and income tax collected by the Government, and must be paid in full and on time. If there is delay in payment, it attracts penalty. A stamp duty paid instrument/ document is considered a proper and legal instrument/ document and such gets evidentiary value and is admitted as evidence in courts. Instruments /documents not properly stamped are not admitted as evidence by the court.
How do I find out the Stamp Duty Payable on my property?You can find out the market value of your property and the stamp duty amount on it from the Ready Reckoner as follows:-
- You should know the division/village name and C.S. /C.T.S. number of your property.
- From the Ready Reckoner, locate your valuation zone and sub-zone with the help of the division/village name and C.S./C.T.S. number of your property.
- From the table know your rate per square meter, then multiply the rate with the built up area of your property in square meters. You will get a value. Reduce or increase this value for lift and depreciation as per the valuation factors given in the Ready Reckoner and you will get a market value. Find out the stamp duty amount applicable to you as per the market value.The Department also does this procedure for you for a nominal fee.
- The process of valuing the property and arriving at its market value and ascertaining the proper stamp duty is called adjudication.
- For adjudication, one can apply to the Collector of Stamps along with copy of the agreement containing the details of the property.
- The adjudication fee payable is Rs.100.
- In case of a signed document, adjudication must be done within one month otherwise two percent interest per month will be levied as penalty from the date of signature.
- An adjudicated unsigned document is valid up to six months from the date of adjudication order up to December 31 of that year whichever is earlier.
When is the stamp duty payable?It is payable before execution of the document or on the day of execution of document or on the next working day of executing such a document. Execution of the document means putting signature on the instrument by the person’s party to the document.
Who is liable to pay?In the absence of any agreement to the contrary, the purchaser/transferee has to pay stamp duty or in case of exchange of properties, both parties have to bear stamp duty equally.
What is the penalty for delayed payment?
If stamp duty is not paid on time, it attracts penalty at the rate of 2 % per month on the deficit amount of the stamp duty. However maximum penalty can be only 200% of the deficit amount of the stamp duty. (This amendment has come into force from 01-05-2001) Documents lodged with the sub-registrar/superintendent of stamps prior to any amnesty scheme will attract a lump sum penaltyofRs.250 or Rs.300 only, as the case maybe.