STAMP DUTY AND REGISTRATION OF DOCUMENTS
ENSURE THAT YOUR PROPERTY IS LEGALLY PROTECTED.
NON-COMPLIANCE MAY CREATE A LEGAL DEFECT IN YOUR TITLE TO YOUR PROPERTY
PAYMENT OF STAMP DUTY
Under the Indian law, a document which creates, revises or extinguishes a right attracts a government tax. Traditionally, this tax (duty) was paid by way of buying stamps from the government and fixing them on the document, hence the name ‘stamp duty’. Stamp duty is required to be paid on purchase of property since the sale deed transfers the ownership rights of the seller to the buyer.
The amount of stamp duty payable depends on a number of factors. In case of a sale deed, the amount of stamp duty payable is calculated on the basis of the geography in which the property is located and the purchase cost of the property.
Payment of stamp duty is compulsory requirement. Non-payment of stamp duty on a document renders the document inadmissible as evidence in a court. If such a document is produced before the court, the court will confiscate the document till the deficient stamp duty and penalty is paid.
REGISTRATION OF DOCUMENTS
Registration of documents is an important legal step which is necessary for completing a purchase of property. This step creates a record in the books of the government of the property purchase, and recognizes the buyer as the new owner of the property.
Registration of a sale transaction protects the interest of a buyer, as it acknowledges the buyer as the legal owner of the property. Registration is not only desirable but also essential for all purchase of real estate (apartments, shops, land, etcetera). If the transaction documents are not registered, the consequences could be severe. Such documents are not accepted as evidence in a court. In such a case, the protection available to a buyer under various laws – including laws for protection of consumer rights – are lost. Also, there is no action which a buyer can take to stop the seller from claiming title to the property after the sale.
Registration involves payment of a fee and generally requires the presence of both the buyer and the seller – either personally or through a properly-authorised representative – at the office of the registration authority.
We at LawLeo can assist you in understanding the amount of stamp duty that may be required to be paid on your purchase. In addition, we facilitate payment of the stamp duty and also handhold you through the registration process, ensuring that your property documents are properly registered and legally enforceable by you. For more information on how we can help you, you may write to us at or call us on 9821387275.