By Soniya Gaonkar on Mar 15, 2022 5:06:54 PM
Buying your dream home is a once in a lifetime event for millions. Families nourish aspirations for years before making the purchase and when such is the case, every penny matters. From the down payment to EMIs, there are way too many payment schedules involved, stamp duty is one of the costs attached to your home buying. Let’s look at what is stamp duty exactly to address it better.
Buying a property doesn’t imply that it belongs to the one who made the purchase. The property must be properly registered with the government to confirm possession legally. Hence, the government levies a compulsory tax on property as legal evidence that the property is owned by you, and that taxation is termed as ‘Stamp Duty’. The percentage of the stamp duty in Maharashtra is governed under Maharashtra Stamp Act, 1958, and is regulated by the government of Maharashtra.
It is the buyers' responsibility to pay the tax and register the home with the government to avoid legal complications in the future. Depending upon the value of a property, the Stamp Duty is imposed by the government.
The Rising Real Estate
Pune’s real estate is climbing the graphs. And so will be the stamp duty rates. The government of Maharashtra has decided to increase the stamp duty rate by 1% from 1st April 2022 making it reach 7% as compared to the current stamp duty rate of 6%. This is going to be significant as buying a property before 1st April can help you save lacs. This has already stimulated a wave of new registrations for various real estate properties across the city. Buyers are preponing their purchase plans to save money which can be useful for various home customizations.
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Parameters that Influence Stamp Duty
There are various factors that influence stamp duty rates. Here are details to give you some insights.
- Location of the Property:
Properties in urban areas attract higher stamp duty as compared to rural areas.
- Age of Property:
The age of property determines the rate of stamp duty. Older properties are inexpensive and hence they attract a lower rate of stamp duty.
- Age of Property Holder:
Senior citizens get special privileges. Senior citizens have to pay less stamp duty and are exempted from heavy costs.
- Type of Property:
Apartments have higher stamp duty than independent houses. Which is the reason one will have to shell out more while buying an apartment than while buying an independent house.
- Purpose of the Property:
Commercial property has higher stamp duty than residential property.
Stamp duty registration requires some paperwork. Here’s the list of essentials that one must be ready for the registration:
- Signed & paid receipt of the stamp duty
- Any of the ID proofs from the mentioned – aadhar card, pan card, driving license, passport, voter ID, etc.
- Another ID proof by witnesses
- Paid tax receipt of the past 3 months
- No objection certificate
- Tax clearance/no due certificate
- Power of attorney, sale deed, conveyance deed and other relevant property documents
- Electricity bill
- Passport size photographs – 2
Ways of Payment
There are multiple ways to pay the stamp duty on your new property purchase:
- e-Stamping: A process through which you can pay the stamp duty online. E-stamping is considered safe, fast and transparent.
- Non-judicial Stamp Papers: This is the oldest and most widely used process for making stamp duty payment. Here, the buyer must visit the nearest sub-registrar office and do the proceedings.
- Franking: This is the process of etching your sales deed with a red mark through government-authorized automated franking machines.
At Kohinoor, we understand how every penny matters and how important is your dream living aspiration. Kohinoor Group has a dedicated team to take care of everything related to the purchasing processes which also ensures that everything is detailed out to the buyers and every step of the process resonates with transparency. Here, the promise of togetherness doesn’t end with the purchase but begins. With our SSR team, the journey ahead just gets better and better ensuring utmost comfort for you and your family at Kohinoor. As the increase in stamp duty rates would cost you more, it is important to speed up your property buying process. Check out our residential projects in Pune to grab the best deals! For more info call us at +91-020-6764 183.