Never Skip Paying Stamp Duty Charges
May 16, 2019 Real Estate News
As a homebuyer, one is always trying to find ways to bring down the cost of the property purchase. From negotiating with the loan lender to the property seller, a potential homebuyer does not leave any stone unturned. One can even go as far as saving money on the stamp duty and evade it by paying the stamp duty charges. Every state has its stamp duty charges, and it mostly ranges between 4 to 10 percent of the property cost. The buyer also has to pay 1 percent the amount of the property as the registration charges.
When you put together the cost of stamp duty and registration charges, the amount paid by the buyer for the property purchase goes up. This often leads to the buyers reducing the deal value on papers so they will have to pay less stamp duty and registration charges. There have been many cases in Indian regarding the same, and every state has different law for the offence. In some states, you need to pay the fine for the same while in some states one can serve jail time up to one year for evading the stamp duty charges.
States like Bihar, Assam, Kerala and Odisha follow the national law concerning the stamp duty evasion offence. The offender can be asked to pay the fine of Rs 50,000 or 20 percent of the evasion amount, whichever is more if the evasion is up to Rs 10 Lacs. For the escape of more than Rs 10 lacs, the offender can be sentenced to jail time of up to 1 year or pay the fine of Rs 50,000 or both.
To promote women in property purchase, states have a special provision in the stamp duty charges for the women. When you buy a property in a woman’s name, you have to pay lesser stamp duty, almost re 1 in most states. This is one way of saving stamp duty.
The developers are trying to sell their unsold inventory and come up with offers now and then. Offers like ‘no stamp duty fees or registration fees’ is an excellent way to escape paying stamp duty charges. One does not even have to wait for the festive time for the offers to come in; the developers are running offers to sell their inventory now and then.
Most banks include stamp duty and registration charges in the loan they are providing; this makes it easier for the buyer, and they do not have to struggle when paying the stamp duty.
When you put together the cost of stamp duty and registration charges, the amount paid by the buyer for the property purchase goes up. This often leads to the buyers reducing the deal value on papers so they will have to pay less stamp duty and registration charges. There have been many cases in Indian regarding the same, and every state has different law for the offence. In some states, you need to pay the fine for the same while in some states one can serve jail time up to one year for evading the stamp duty charges.
States like Bihar, Assam, Kerala and Odisha follow the national law concerning the stamp duty evasion offence. The offender can be asked to pay the fine of Rs 50,000 or 20 percent of the evasion amount, whichever is more if the evasion is up to Rs 10 Lacs. For the escape of more than Rs 10 lacs, the offender can be sentenced to jail time of up to 1 year or pay the fine of Rs 50,000 or both.
How to save for stamp duty?
Stamp duty evasion is an illegal offence and can lead to severe consequences. Evading the same can also jeopardise the entire purchase. Stamp duty is a financial liability that one must take care of for property purchase. But there are ways with which one can lower the cost of this financial liability.To promote women in property purchase, states have a special provision in the stamp duty charges for the women. When you buy a property in a woman’s name, you have to pay lesser stamp duty, almost re 1 in most states. This is one way of saving stamp duty.
The developers are trying to sell their unsold inventory and come up with offers now and then. Offers like ‘no stamp duty fees or registration fees’ is an excellent way to escape paying stamp duty charges. One does not even have to wait for the festive time for the offers to come in; the developers are running offers to sell their inventory now and then.
Most banks include stamp duty and registration charges in the loan they are providing; this makes it easier for the buyer, and they do not have to struggle when paying the stamp duty.
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