While stamp duty is a tax calculated on the basis of transaction value, the registration fee is the cost that users pay for the deposition service of a contract or deed in government records. With simple words, the government keeps a record of documents for a fee. This process confers a high inviolability on documents that would otherwise not be legally binding. Stamp duty ranges from 3 to 10% of the pre-settlement billing rate or the contractual value of the property, depending on the highest value. In this method, the agreement is printed on ordinary paper. This document is submitted to an authorized bank that processes documents through a frankier machine. Authorized banks stamp the proof of purchase of real estate or set a unit value. This proves that stamp duty was paid for the transaction. Registration on behalf of a woman: Some states grant significant discounts on stamp duty for buyers of female real estate. So if you are looking to save stamp duty, you can buy the property on behalf of a female family member. If you have chosen several sites for your real estate purchase, you can compare stamp duty on different sites to decide which site offers the lowest value of stamp tax. Suppose Kumar decided to register this property in the name of his wife Gita Rani.
Then they have to pay the Rs 2 Lakhs as a stamp duty, since the tax applicable to women buyers in Delhi is 4%. At 1% of the value of the agreement, the registration fee remains the same for Gita Rani. The total outgo in this case will therefore be Rs 2.50 Lakhs. In case the rights to the land next to the apartment given on the floor/stilts with the apartment, for gardening, parking, etc. then 40% of the pre-finished billing value multiplied by the surface and included in the valuation of the property. We have 57,793.05/- per square meter value for flat first of first, you must calculate the value of your contract. It is also worth mentioning that States apply different fees for the registration of the same instruments in India. For this reason, stamp duty on the registration of real estate in India varies from state to state. Home buyers in Delhi pay 6% stamp duty on real estate registration, up from 2% in Mumbai currently.
In Jharkhand, accommodation costs are 3% of the value of real estate. “It is expected that, under the HFA, several additional lakhs of houses will be built with direct or indirect central subsidies. These houses will generate huge “incremental” tax revenues for states, which go beyond the normal growth in stamp duty and registration fees revenues, which are determined by economic activity. States can share some of this additional tax revenue with buyers of low-value homes by reducing or eliminating their stamp duty and registration fees. Lower prices could encourage more people to look for affordable homes. In addition to an increase in the housing stock, lower prices are a must if HFA is to succeed,” says the study entitled “A Revenue Neutral Approach to Lower Stamp Duty and Registration Charges for Affordable Housing “. The value of the contract must be calculated on the basis of the overall needs of the university – a difficult task for each department. The following rules apply: The determination of the valuation of real estate over 02 years of age must be deducted from the respective percentage of book value. To determine the age of the property, the certificate of occupancy or certificate of completion issued by the relevant government is verified. If these certificates are not available, other information such as the date of electricity connection, etc.