In accordance with the Constitution, stamp and registration duties are subdivided into taxes levied on the EU list and on the list of states. Under the Stamps Act, it is open to states to determine stamp duty so that rates reflect the specific policy of that state. In Indian states, stamp duty varies between 3% and 10% of the value of real estate in the states. 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. Assuming that the couple has decided to register the property in common, the current stamp duty is 5% plus the 1% registration fee. In this scenario, the overall transfer of these bonds for pair 3 Lakhs (Rs 2.50 Lakhs as stamp duty – R 50,000 as registration tax). Under Section 80C of the Income Tax Act, a homebuyer can claim a discount on the principal payment of his home loan, as well as the money paid for stamp duty and registration fees. However, the limit is only Rs 1.50 in one year. In accordance with Section 80C, discounts are available for a large number of investments, including PF, PPF, life insurance, real estate credit capital, etc. However, to qualify for the benefit, the buyer must prove that he has ordered stamp duty and the amount of registration from his pocket. The discount will not be available if the money is borrowed from another source.
Remember also, stamp duty is not refundable. However, this fiction instead would apply to the year of obtaining the accommodation and not to the year of the agreement. The year of the preservation of the apartment would be the year of the transmission of the apartment in its name. Some states provide substantial discounts on stamp duty for female real estate buyers. 5% on the value of Maeket in the Panchayet region 6% on market value in communal areas, corporatist areas and declared areas, which are not included in 23 A) and some mouzas or blocks of South 24 Parganas and north 24 Parganas, divided into three areas of action of the New Town Kolkata Development Authority and divided into a series of blocks. 1% Additional stamp duty in urban and rural areas when the market value exceeds 40 Lakh w.e.f. 02.03.2015. Same customs duty as a transport (No.
23) on the sum of the market value of the shares issued or allocated, in exchange or by any other means, and the amount of consideration for compensation that the ceding company paid for such a merger or merger: provided that the amount of this tax to be collected under this article does not exceed (i) an amount equal to 2% of the actual market value of the property sold by the divested company or (ii) half a per cent of the market value of shares issued or awarded in exchange or by other means and the amount of consideration paid by that company absorbed for such a higher merger; (b) by the resulting company, for such a reconstruction or split, provided that in the event of a reconstruction or demerger, the amount of the interest due under that position does not exceed 2% of the actual market value of the property located in the State of West Bengal of the ceding company or (ii) an amount equal to half a per cent of the market value of the shares issued or attributed to the resulting the amount of consideration paid for such a split, depending on the highest date. Depending on the type of property, the buyer must submit a large number of documents to pay stamp duty at the time of real estate registration.