There are few decisions in life as important as buying a house, and this is one of them. Both financially and emotionally, it’s a huge undertaking. Buying a house entails a number of processes, such as locating a property, putting down a deposit, submitting an application for a loan, and finally signing the sales contract. The last and most important stage in the process of acquiring a house is the registration of the ownership of your property. It is your responsibility to get the property registered in your name as soon as you have been handed possession of it.
Physically transferring the property to another individual is just the first step in the process of ownership
In addition, you’ll need to provide documentation proving your ownership of the vehicle. For this, you will need to have the seller document that the property is being transferred to you and get the property registered in the local municipal records for you to own the property. When you register your property, you’ll also have to pay stamp duty, which is a government cost levied on real estate transactions,let’s try to learn more about stamp duty in this article, including what it is, why it is required, and several other aspects.
Stamp duty is collected depending on the market value of the property at the time of registration. State-by-state and property-by-property, the amount of stamp duty is different. It is in your best advantage to know the whole cost of the property before completing your real estate deal. Choosing the Stamp Duty Calculator is important for that process.
In the case of real estate transactions, stamp duty is a kind of legal tax that must be paid in full and acts as documentation. As stamp duty is a matter for the states, there is a wide variation in the rates that are charged. The federal government levies stamp duty on certain instruments and sets the rates at which it will be applied.
However, in the event of a property transaction, both the seller and buyer are obligated to split the stamp duty equally.
Exactly what is the “stamp duty?”
This charge is levied and collected by the government in a manner similar to that of income tax. The payment of stamp duty is mandated under Section 3 of the Indian Stamp Act of 1899. In order to avoid any penalties, the Stamp Duty must be paid promptly and in full. If you pay stamp duty beyond the due date, you will be charged a late fee. When a stamp duty fee has been paid, a document or instrument is considered to be valid and legal, and it may be used as evidence in a court of law. The court will not accept a document as evidence if it does not bear the required stamp.
When must stamp duty be paid?
Either before, on the day of, or the first working day after the execution of a document of this kind, it must be submitted. “Execution” refers to the act of signing a document as part of the process of executing a legal document.
What are the penalties and related costs?
A penalty equivalent to 2% of the stamp duty deficiency, up to a maximum of 200% of the deficit, shall be applied if the duty is not paid on time. Purchasing stamp papers in the name of the seller or buyer who is participating in the agreement is required, else the stamp papers will be void. If the duty is paid in a timely way, it is valid for six months from the date of purchase.