Prime Property Dealers

Stamp Duty

Registration

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.

Stamp Duty FAQ

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.
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 penalty of Rs.250 or Rs.300 only, as the case maybe.

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.
Is stamp duty payable on all instruments/ documents relating to the transfer of immovable property?
Except transfer by will (or by original nomination in a cooperative housing society) all transfer instruments/documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and license agreement, agreement of tenancy and lease deeds have to be properly stamped before registration.

It is clarified that a when a nominee transfers the flat subsequently in the name of the legal heirs, that transfer instrument is to be stamped as per the market value. If you have purchased a flat in a co-operative housing society on or after 10-12-1985 you have to pay the stamp duty on market value as per the Ready Reckoner. A flat purchased through an agreement for sale on or before 9-12-1985 required stamp paper of Rs.5 only. However a flat purchased on or before 9-12-1985 will require stamp duty on market value at the time of conveyance of the property in favour of the society. The concept of payment of stamp duty on market value was introduced from 04-07-1980 will be charged on agreement value only.

What is the relevance of the dates 10-12-1985 and 04-07-1980?

For any flat purchased in a co operative housing society on or after 10-12-1985, it is required to pay stamp duty on market value at the time of signing the agreement itself. However, prior to 10-12-1985, such transactions of agreement for sale required a stamp paper of Rs.5 only at the time of signing the agreement. However stamp duty on market value will have to paid on all such transactions at the time of conveyance of the property in favour of the society.

From 04-07—1980 onwards, if the property is not covered under the Co-operative Society Act, you are required to pay stamp duty on market value. This payment is required at the time of execution of the document. However, prior to 04-07-1980 there was no market value concept hence agreement value was accepted for stamp duty payment.

In whose name should the stamp paper be purchased?

From 01/05/1994 stamp paper are to be purchased in the name of one of the parties to the instrument/ document. If the stamp paper is not in the name of the parties and if it is used for preparing the agreement, it will be as if no stamp paper was used. However it will not make the agreement invalid and can be enforced in law if proper stamp duty is paid subsequently.

Registration is the process of recording a copy of a document, transferring the title in immovable property to the office of the Registrar. Registration acts as proof that a transaction has taken place. The registration of a document serves as a notice of the transaction, to the persons affected by the transaction. Registration also serves as an implied notice to any person subsequently acquiring interest in the property, covered by the registered document. When a document, which is compulsorily to be registered, is not registered, it fails to confer any title given by the document. The real purpose of registration is to ensure that every person dealing with property for which compulsory registration is required, can confidently rely on the statement contained in the register, as being a full and complete account of all transactions by which the title may be affected. A certificate of Registration is mere evidence that a document has been registered. It is not proof that it has been executed. When the execution of a document is directly in dispute between two parties, the fact that the document is registered is not sufficient to prove its genuineness. Registration does not automatically dispense with the necessity of independent proof that the document was executed. Registration is done after the parties execute the document. The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act, 1908 within four months from the date of execution of the document. However, if due to any unavoidable circumstances, the document is not registered within the time limit, then the document can be registered only on making an application to the Sub-Registrar of Assurance within a further period not exceeding four months and on payment of appropriate fine.

If you have always wandered what registration involves, read on

The Sub-Registrar of Assurances does the following:- 
He verifies the document to ascertain whether it is legal to register it.
He further verifies that the full stamp duty is paid.
In his presence all parties executing the document admit that they have executed the document presented for registration. Parties who are present and admitting to execute the document are then personally identified by two independent witnesses. All parties and witnesses present, again sign in the presence of sub-registrar on an additional page attached to the document.
Parties to the document are photographed and their thumb impression is taken and such photograph and thumb impression is affixed on additional pages attached to the document.
He puts his official seal on each page and puts a unique numbering block on each page of the document including the additional pages. On the last page he signs the document as being registered.
After completing this procedure, he records the contents of the document, including the additional pages, either by photocopying the content or by scanning the content of the document. The photocopy or scanned image is permanently retained by him in his records so that in future whenever a copy of the document is required it can be obtained. Also that copy becomes a public document, which anybody can inspect by paying the requisite inspection fees.
After taking a copy of the document, as mentioned above, on the record and after completing the above formalities the original document is returned to the party presenting the document for registration. This completes the process.

Is registration compulsory for all types of transfer of immovable properties?
Except in case of transfer of shares of a co-operative housing society and housing limited company where registration is optional, virtually in all cases of transfer of immovable property like family arrangement, agreement to sell, conveyance, gift deed, lease deed (above one year), leave and license agreement, tenancy agreement, declaration deed, power of attorney to sell for consideration etc. has to be registered compulsorily under Indian Registration Act,1908 otherwise the proper legal title will not pass on to the purchaser/transferee i.e. the title will be defective if registration is not done.

In what languages should the document be written so that it can be registered in Mumbai?
It should be normally be written is English, Hindi, Marathi and Gujarati only.

After how long is the document given for registration returned?
Documents lodged for registration prior to October 1, 1995 are sent to Pune, after it is indexed, for microfilming and only then it is returned to the party, which may take a few years. All the documents lodged for registration on or from October 1, 1995 are returned to the party within a few days of indexing the same because only the photocopy is sent to Pune for microfilming. After February 1, 2002 when the registration process was computerized, normally the documents have been returned within half an hour.

Why does it take so long time for documents to be returned in old cases?
The above mentioned procedure is one of the reasons but the major reasons due to which the document remained pending at the office of sub-registrar and not being indexed and not returned to the Owner are as follows:-
Stamp Duty was not paid according to the “Market Value”.
Income Tax Clearance certificate U/s 230 was not attached where required (See Note (i) below).
N.O.C. of Appropriate Authority in Form 37-1 was not attached where required. (See Note (ii) below).
N.O.C. under Urban Land Ceiling Act was not attached where required.
Certain parties to the Agreement had not admitted execution in front of the Sub-Registrar
The above deficiencies were always pointed out at the time of registration by way of remark (such as MV, 230A, 37-1, NOC, ADM) on the registration receipt itself but due to ignorance, owners have never cared to clear them and hence documents which do not have deficiencies mentioned in the points mentioned above. However deficiency relating to non-admission is tolerated and the document is accepted and kept pending for admission only.