However, there have been few cases where buyers decrease the value of the property in order to avoid paying the full stamp duty charges. But when such buyers get caught, they have to pay huge penalties. This is known as stamp duty evasion.
Almost all states of India have different rule to penalise the defaulter but here are some of the common clauses:
- Stamp duty evasion can attract a huge amount of penalty that can go up to 10 times of the actual amount.
- In extreme cases, the defaulter can get prosecuted for up to six months.
But do you know, you can actually save stamp duty tax! You can save some extra cost not by evasion rather by doing some good bargain. Many developers offer discounts like free stamp duty and registration charges, in order to attract buyers. So, buyers can watch out for such offers which could be a lucrative deal for them. In addition, according to the directives of the Reserve Bank of India (RBI), now banks or financial institutions providing home loan have to include the cost of stamp duty and registration charges as well.
Therefore, it is always better to own a property legitimately to avoid unwanted huge penalty charges and also to save some extra money you can get your property in the name of your mother or wife as stamp duty and registration charges are usually lower for females as compared to usual charges.