#NewDelhi: When a buyer buys a new property, a one-time stamp duty and registration charge is to be paid to legally transfer ownership from the seller. The amount of this duty can range from 8% to 10% of the market value or purchase price of the property. Registration fee is usually 1%, whereas stamp duty can range from 5% to 6%. The state government imposes these tariffs, so the amount of these tariffs varies from state to state. In addition, the amount of stamp duty is higher in municipal areas than in rural areas or panchayat areas.
Read more: The money for the 11th installment of the scheme is coming this day, check the status soon
In what ways can stamp duty and registration charges be paid?
In the following three ways a buyer can pay stamp duty and registration charge to register his property in his own name.
- Stamp paper
It should be noted here that in all the states of the country, there may not be these three ways to pay property tax. If all three are present, stamp duty can be conveniently submitted using any one of the methods.
Read more: Have you also done FD in the bank? Then you must know this ….
The purchase of stamp paper and submission of property tax is the oldest legal transfer process. In this case the customer has to buy non-judicial stamp paper from an authorized dealer. After taking the stamp paper, all the information of the transaction has to be written or typed in it. Finding an authorized non-judicial stamp dealer is a daunting task. Many times there is a shortage of stamp paper for registration. These stamp papers have to be purchased depending on the value of the property. If the value of the property is higher, the amount of duty will be higher. In that case you have to buy more stamp paper and in the same way less paper is required if the stamp duty is less.
The Government of India has launched e-Stamping Service to avoid the hassle of counterfeit stamp paper and to simplify the payment process. The e-stamping system has been made mandatory in some states. The process of paying stamp duty online is called e-stamping. The Central Government has appointed Stock Holding Corporation of India Limited (SHCIL) as the official distributor of e-stamps. In addition, the agency is responsible for keeping track of all stamps used in the country as the Central Record Keeping Agency.
To use e-stamping, the customer needs to visit SHCIL’s website to confirm whether e-stamping services are available in their state. If e-stamping is available, then an application form has to be filled with appropriate information. This form will specify where to submit the application form. The application form has to be submitted at the specified place by depositing the stamp duty money online.
Stamp duty can be paid using debit card, credit card, check, demand draft and online banking. Upon submission of the duty, the customer will receive an e-stamp certificate with a ‘Unique Certification Number (UIN)’. ‘Issue Date’ will be written on the top of the certificate.
The biggest advantage of e-stamping process is that it is very easy and can be done at home. In addition, if e-stamping is done, property information can be verified online at any time using UIN number.
Read more: Gold and silver prices rose sharply, take a look at the price of 22 carats
Franking is one of the methods of paying stamp duty. This is a process where an authorized franking agent will affix a stamp on the property owner’s documents. This stamp will indicate that the customer has paid his property tax. To use the franking process, the customer must contact an authorized bank and apply to act as a franking agent. Once the stamp duty is paid, the stamp will be affixed to the customer’s document using a franking machine. This stamp will serve as proof of payment of duty.
Each state has a minimum charge for using the franking system. In Bangalore, for example, the minimum franking charge is set at 0.1% of the contract price. So, if the buyer buys a property for Rs 50 lakh, he has to pay Rs 5,000 (0.1% of Rs 50 lakh) as franking charge. However, this money is not deducted extra. This charge is levied there while preparing the sales deed. That is, if the stamp duty on the sales document is 5.5%, then 0.1% deducted at the time of franking will be deducted here. Customer has to pay total (5.5-0.1) = 5.4% duty.
Tags: Registration Charges, Stamp Duty
(This is an auto-generated article from syndicated news feed. TEAM BEPINKU.COM may not have modified or edited the article).