In the recent past, the unprecedented economic development that is happening across the globe has led to an exponential growth in different segments like Banking, Insurance, Consumer durables, real estate, etc. The real estate segment has spread its wings in all directions and the cities have expanded resulting in the emergence of many high rise buildings in and around the city. To reduce unauthenticated constructions government has imposed various schemes like transaction duty, stamp duty, registration charges, etc. so and it is levied on residential and commercial property transactions, as well as freehold or leasehold properties.
One of the important charges that are collected to authenticate the sale agreement and to maintain a record of the property as well is the stamp duty. Stamp Duty is a type of tax levied by the Government on the documents based on the market value and registration value. Stamps are affixed on the documents pertaining to the property, by doing so Government lends authenticity and evidentiary value to the document/instrument and it can thus be submitted in the court of law. These charges are now made compulsory.
Stamp Duty rates vary among the different states of India and also on the property type, whether it is a new one or an old one. The payable Stamp Duty amount may be fixed or varying depending upon the value of the properties, products or services on which it is levied upon. The revenue derived from such duties forms a considerable part of the revenues of the States. As per law, the entire proceeds of the duties get assigned to the State in which they are levied, though. For the sake of ensuring uniformity of rates, the central Government has issued certain guidelines based on which states can implement these charges. The government regularly updates its Stamp Duty laws and in addition to the above, several other amendments have now been published. These things are done aiming at cooling the property market.
With technology amalgamated into finance, it has revolutionized the way that people access financial data. This is true for calculating stamp duty fees as well. The owners can now get an estimate of how much stamp duty is payable with a click of a button. A sale agreement that is not appropriately stamped is not acceptable as legal and the property would not be legally transferred in the name of the buyer if not proper stamp duty is paid.