Stamp duty is the tax that has to be paid in full and one time when you buy, transfer, or gift property. In the event of buying or gifting the tax is payable by the person in whose name the property is being transferred. In the case of an exchange, both parties are responsible for transfer. If you delay the payment, you will be liable to pay a penalty of 2% per month on the unpaid amount. This could lead to a maximum penalty of up to 200% on unpaid amount of stamp duty. Stamp duty as to be paid to establish legal ownership of a property as documents not properly stamped are not accepted in court as evidence.
The basis for calculation of stamp duty on a property depends on a few variables.
1.First and foremost is the price of the property itself - For example, in Mumbai per the Bombay Stamp Act, 1958, the stamp duty is dependent on the market price. Up to Rs.1,00,000 there is no stamp duty. Above 1 lakh but less than Rs.2,50,000 it is 0.5% of the price. Above Rs 2,50,000 but below Rs.5,00,000 it is Rs.1250 + 3% value above Rs.2,50,000. Rs.5,00,000 and above, the stamp duty is Rs.8750 + 5% on the value over and above Rs.5,00,000
2.Which state in India is the property located - The rates of stamp duty varies in different states.
3.Whether it is residential or commercial – There are different rates for residential and non-residential properties. The commercial properties are taxed around 5% more than residential properties.
The basis for calculation of stamp duty on a property depends on a few variables.
1.First and foremost is the price of the property itself - For example, in Mumbai per the Bombay Stamp Act, 1958, the stamp duty is dependent on the market price. Up to Rs.1,00,000 there is no stamp duty. Above 1 lakh but less than Rs.2,50,000 it is 0.5% of the price. Above Rs 2,50,000 but below Rs.5,00,000 it is Rs.1250 + 3% value above Rs.2,50,000. Rs.5,00,000 and above, the stamp duty is Rs.8750 + 5% on the value over and above Rs.5,00,000
2.Which state in India is the property located - The rates of stamp duty varies in different states.
3.Whether it is residential or commercial – There are different rates for residential and non-residential properties. The commercial properties are taxed around 5% more than residential properties.
