When a buyer and seller engage in a property transaction, it’s essential for them to finalize the sale deed through registration in India, which entails the payment of both stamp duty and registration fees.
Who Collects Stamp Duty and Registration Charges in India?
- In accordance with the Indian Stamp Act of 1899, the collection of Stamp Duty is the responsibility of the state government, not the central government. The rules can differ significantly across states, with the state utilizing these funds primarily for infrastructure development.
- The amount of Stamp Duty fluctuates based on the type of housing, the particular state, and factors such as the buyer’s gender. Notably, senior citizens benefit from reduced registration charges.
Advantages of Stamp Duty
- Registering a sale deed with stamp duty transforms it into an authentic legal document, allowing the deed to serve as valid evidence in court if needed. In cases of loss, a duplicate can be easily obtained. Generally, it’s the buyer who handles the payment of stamp duty during the registration.
- Typically, it is the buyer who is responsible for paying the Stamp Duty as part of the registration process.
Understanding Stamp Duty in Real Estate
In the realm of real estate, Stamp Duty is applicable to various documents such as Sale Deeds, Partition Deeds, and Lease Deeds. Specifically, if a Lease Deed exceeds 12 months, it becomes mandatory to register and pay the corresponding stamp duty. This means that the property documents must be authenticated by a notary, confirming the validity of the signatures from both involved parties on the agreements.
Stamp Duty Specifics in Delhi
- The history of Stamp Duty in Delhi dates back to 1908, marking it as a longstanding charge.
- In Delhi, the stamp duty rates are as follows: 6% if the property is registered in a male’s name, 4% if in a female’s name, and 5% if registered jointly. These rates apply when the property value is less than 10 lakh rupees. For properties valued above 10 lakh rupees, both male and female buyers incur the same stamp duty rate.
- The registration fee constitutes 1% of the property’s value.
Owner Stamp Duty Information
Male: 6%
Female: 4%
Joint (Male & Female): 5%
Methods for Paying Stamp Duty
There are three primary methods to undertake the payment of stamp duty:
Method 1:
Non-Judicial Stamp Paper – For a stamp duty of 1 lakh, you need to procure stamp papers valued at Rs 1 lakh and print the sale deed directly on them.
Method 2:
Franking Method – Here, you’ll print the sale deed on regular paper. The stamp duty can then be settled through cheque, cash, online transfer, or DD draft, followed by obtaining bank authentication for the sale deed.
Method 3:
E-Stamping – This method requires all information to be generated online. Visit the Stock Holding Corporation of India’s website at www.shcilestamp.com, where payment can be made at designated centers, and e-stamps can be collected subsequently.