FAQ on stamp duty DeepakInfo by liaoqinmei


									How do I find out the Stamp Duty Payable on my property?
You can find out the market value of your property and the stamp duty amount on it from the Ready Reckoner as
      You should know the division/village name and C.S. /C.T.S. number of your property.
      From the Ready Reckoner, locate your valuation zone and sub-zone with the help of the division/village
          name and C.S./C.T.S. number of your property.
      From the table know your rate per square meter, then multiply the rate with the built up area of your
          property in square meters. You will get a value. Reduce or increase this value for lift and depreciation as
          per the valuation factors given in the Ready Reckoner and you will get a market value. Find out the stamp
          duty amount applicable to you as per the market value.
The Department also does this procedure for you for a nominal fee.
1. The process of valuing the property and arriving at its market value and ascertaining the proper stamp duty is
called adjudication.
2. For adjudication, one can apply to the Collector of Stamps along with copy of the agreement containing the
details of the property.
3. The adjudication fee payable is Rs.100.
4. In case of a signed document, adjudication must be done within one month otherwise two percent interest per
month will be levied as penalty from the date of signature.
5. An adjudicated unsigned document is valid up to six months from the date of adjudication order up to December
31 of that year whichever is earlier.

Stamp Duty FAQ
What is stamp duty? Why should stamp duty be paid?
It is tax, similar to sales tax and income tax collected by the Government, and must be paid in full and on time. If
there is delay in payment, it attracts penalty. A stamp duty paid instrument/ document is considered a proper and
legal instrument/ document and such gets evidentiary value and is admitted as evidence in courts. Instruments
/documents not properly stamped are not admitted as evidence by the court.
What is the penalty for delayed payment?
If stamp duty is not paid on time, it attracts penalty at the rate of 2 % per month on the deficit amount of the stamp
duty. However maximum penalty can be only 200% of the deficit amount of the stamp duty. (This amendment has
come into force from 01-05-2001) Documents lodged with the sub-registrar/superintendent of stamps prior to any
amnesty scheme will attract a lump sum penalty of Rs.250 or Rs.300 only, as the case maybe.
When is the stamp duty payable?
It is payable before execution of the document or on the day of execution of document or on the next working day of
executing such a document. Execution of the document means putting signature on the instrument by the person’s
party to the document.
Who is liable to pay?
In the absence of any agreement to the contrary, the purchaser/transferee has to pay stamp duty or in case of
exchange of properties, both parties have to bear stamp duty equally.
Is stamp duty payable on all instruments/ documents relating to the transfer of immovable property?
Except transfer by will (or by original nomination in a cooperative housing society) all transfer
instruments/documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed,
deed of partition, power of attorneys, leave and license agreement, agreement of tenancy and lease deeds have to be
properly stamped before registration.
It is clarified that a when a nominee transfers the flat subsequently in the name of the legal heirs, that transfer
instrument is to be stamped as per the market value. If you have purchased a flat in a co-operative housing society
on or after 10-12-1985 you have to pay the stamp duty on market value as per the Ready Reckoner. A flat purchased
through an agreement for sale on or before 9-12-1985 required stamp paper of Rs.5 only. However a flat purchased
on or before 9-12-1985 will require stamp duty on market value at the time of conveyance of the property in favour
of the society. The concept of payment of stamp duty on market value was introduced from 04-07-1980 will be
charged on agreement value only.
What is the relevance of the dates 10-12-1985 and 04-07-1980?
For any flat purchased in a co operative housing society on or after 10-12-1985, it is required to pay stamp duty on
market value at the time of signing the agreement itself. However, prior to 10-12-1985, such transactions of
agreement for sale required a stamp paper of Rs.5 only at the time of signing the agreement. However stamp duty on
market value will have to paid on all such transactions at the time of conveyance of the property in favour of the
From 04-07—1980 onwards, if the property is not covered under the Co-operative Society Act, you are required to
pay stamp duty on market value. This payment is required at the time of execution of the document. However, prior
to 04-07-1980 there was no market value concept hence agreement value was accepted for stamp duty payment.
In whose name should the stamp paper be purchased?
From 01/05/1994 stamp paper are to be purchased in the name of one of the parties to the instrument/ document. If
the stamp paper is not in the name of the parties and if it is used for preparing the agreement, it will be as if no stamp
paper was used. However it will not make the agreement invalid and can be enforced in law if proper stamp duty is
paid subsequently.
Prior to 01/05/1995 stamp paper could be purchased in any name and was valid for any period of time. However
from 01/05/1994 stamp paper is valid for a period of six months from the date of purchase and after that it is treated
as ordinary paper as if it has no stamp.
In whose name should the Banker’s pay order be issued?
It should be issued in favour of “Superintendent of Stamps, Mumbai”
Is stamp duty payable on the instrument or on the transaction?
It is payable on instruments and not on transactions. Stamp duty should be charged on the basis of the contents of
the instrument only. If any information essential for working out stamp duty is missing in the instrument, valuation
officer can call for it. Information such as the area of the flat, number of the floors and year of construction must be
mentioned in the agreement for quicker response.
What are the instruments on which it is to be paid?
Instruments include every document by which any right or liability is or purports to be created, transferred, limited,
extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of lading,
letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under India
Stamp Act).

The addresses of the stamp office in Mumbai are as under –
The Superintendent of Stamps
General Stamp Office,
Ground Floor,Town Hall Building,
Shahid Bhagatsingh Road,Fort,
Mumbai 400 023.
Ph: 266 4589, 266 4585.
Office of the Superintendent of Stamps
First Floor, B.M.R.D.A. Building,
Bandra (East),
Mumbai 400 051.
Ph: 645 1894.
Stamp Office
Town Hall,
Collector's Office Compound,
Thane (West) 400 601.
(The Thane stamp office is open on Tuesdays and Fridays only and is closed on the 18th of each month for accounts
purposes. If the 18th happens to be Tuesday or Friday, the office will be open on the next working day)

Registration is the process of recording a copy of a document, transferring the title in
immovable property to the office of the Registrar. Registration acts as proof that a
transaction has taken place.
The registration of a document serves as a notice of the transaction, to the persons affected
by the transaction. Registration also serves as an implied notice to any person subsequently
acquiring interest in the property, covered by the registered document.
When a document, which is compulsorily to be registered, is not registered, it fails to confer
any title given by the document.
The real purpose of registration is to ensure that every person dealing with property for
which compulsory registration is required, can confidently rely on the statement contained
in the register, as being a full and complete account of all transactions by which the title
may be affected. A certificate of Registration is mere evidence that a document has been
registered. It is not proof that it has been executed.
When the execution of a document is directly in dispute between two parties, the fact that
the document is registered is not sufficient to prove its genuineness. Registration does not
automatically dispense with the necessity of independent proof that the document was
Registration is done after the parties execute the document. The agreement should be
registered with the Sub-Registrar of Assurance under the provisions of the Indian
Registration Act, 1908 within four months from the date of execution of the document.
However, if due to any unavoidable circumstances, the document is not registered within
the time limit, then the document can be registered only on making an application to the
Sub-Registrar of Assurance within a further period not exceeding four months and on
payment of appropriate fine.
If you have always wandered what registration involves, read on
The Sub-Registrar of Assurances does the following:-
(i) He verifies the document to ascertain whether it is legal to register it.
(ii) He further verifies that the full stamp duty is paid.
(iii) In his presence all parties executing the document admit that they have executed the
document presented for registration. Parties who are present and admitting to execute the
document are then personally identified by two independent witnesses. All parties and
witnesses present, again sign in the presence of sub-registrar on an additional page
attached to the document.
(iv) Parties to the document are photographed and their thumb impression is taken and
such photograph and thumb impression is affixed on additional pages attached to the
(v) He puts his official seal on each page and puts a unique numbering block on each page
of the document including the additional pages. On the last page he signs the document as
being registered.
(vi) After completing this procedure, he records the contents of the document, including the
additional pages, either by photocopying the content or by scanning the content of the
document. The photocopy or scanned image is permanently retained by him in his records
so that in future whenever a copy of the document is required it can be obtained. Also that
copy becomes a public document, which anybody can inspect by paying the requisite
inspection fees.
(vii) After taking a copy of the document, as mentioned above, on the record and after
completing the above formalities the original document is returned to the party presenting
the document for registration. This completes the process.
Is registration compulsory for all types of transfer of immovable properties?
Except in case of transfer of shares of a co-operative housing society and housing limited
company where registration is optional, virtually in all cases of transfer of immovable
property like family arrangement, agreement to sell, conveyance, gift deed, lease deed
(above one year), leave and license agreement, tenancy agreement, declaration deed,
power of attorney to sell for consideration etc. has to be registered compulsorily under
Indian Registration Act,1908 otherwise the proper legal title will not pass on to the
purchaser/transferee i.e. the title will be defective if registration is not done.
In what languages should the document be written so that it can be registered in Mumbai?
It should be normally be written is English, Hindi, Marathi and Gujarati only.
After how long is the document given for registration returned?
Documents lodged for registration prior to October 1, 1995 are sent to Pune, after it is
indexed, for microfilming and only then it is returned to the party, which may take a few
years. All the documents lodged for registration on or from October 1, 1995 are returned to
the party within a few days of indexing the same because only the photocopy is sent to
Pune for microfilming. After February 1, 2002 when the registration process was
computerized, normally the documents have been returned within half an hour.
Why does it take so long time for documents to be returned in old cases?
The above mentioned procedure is one of the reasons but the major reasons due to which
the document remained pending at the office of sub-registrar and not being indexed and not
returned to the Owner are as follows:-
· Stamp Duty was not paid according to the “Market Value”.
· Income Tax Clearance certificate U/s 230 was not attached where required (See Note (i)
· N.O.C. of Appropriate Authority in Form 37-1 was not attached where required. (See Note
(ii) below).
· N.O.C. under Urban Land Ceiling Act was not attached where required.
· Certain parties to the Agreement had not admitted execution in front of the Sub-Registrar
The above deficiencies were always pointed out at the time of registration by way of remark
(such as MV, 230A, 37-1, NOC, ADM) on the registration receipt itself but due to ignorance,
owners have never cared to clear them and hence documents which do not have
deficiencies mentioned in the points mentioned above. However deficiency relating to non-
admission is tolerated and the document is accepted and kept pending for admission only.
(i) Income tax clearance certificate under Section 230A of Income Tax Act, 1961is now not
required from 01-06-2001 even for documents accepted for registration before 01-06-2001
as requirement for such certificate was on the day of registration receipt itself but due to
ignorance and a document was considered to be registered on the day it is Indexed and if it
is not indexed uptil now no Income Tax Clearance certificate is required even for old cases.
(ii) N.D.C. of Appropriate Authority in Form 37-1 is also not required from 01-07-2002. As
above NOC is now obtainable this is applicable even for old cases
The registration procedure can be completed quickly if you have all the right documents
What are the papers/requirements at the time of registration of documents? Please give full
A document should be fully stamped as per the Stamp Duty Ready Reckoner so as to
confirm that proper stamp duty has been paid. The Stamp Duty Ready Reckoner is a public
document and is available for inspection at a sub- registrar’s office.
For registering documents relating to property, one should go the respective registration
office along with the original document and one photocopy. The document must be printed
or typed on one side only and in black colour. A photocopy should be taken on only one side
of the paper and the paper should be of 90 GSM thickness. There should be butter paper
between the two sheets of the photocopy.
Apart from a properly executed and fully stamped duty paid document which is to be
registered, the following documents are also required before the registration procedure is
      No Objection Certificate under the Urban Land Ceiling Act if the area of land
        transferred exceeds 500 sq. mts. in Mumbai City.
      If the land belongs to a government or semi- government body or to a charitable
        trust the no objection certificate of such government or semi- government body or to
        a charitable trust
      Property Card of the land on which the property is being registered is situated. This
        requirement is irrespective of whether land is sold or the building is being sold or any
        other part of the building is being sold and also irrespective of whether the seller of
        the property is recorded as the owner on the property card or not. In other words,
        even the flat owners are expected to produce this paper at the time of registration.
       If property sold/purchased is in the old building and the benefit of depreciation is
        claimed on the market value, then any one of the following documents is to be
        produced as a proof of old construction:
(a) Municipal assessment bill of the building OR
(b) Building Completion Certificate OR
(c) Original registered agreement between the builder and original purchaser of that flat or
of any other flat in that building
(d) Original registered agreement between the builder and original purchaser of that flat or
of any flat in that building.
It is better to get the document adjudicated in case the building is very old and proper
depreciation is not given by the sub-registrar.
· Original Stamp Duty payment receipt
· One should go along with along with two witnesses
· Registration fees and computer service charges is to be paid in cash to sub-registrar at the
time of registration
How does one get the document registered at the sub-registrar’s office?
1. Bring the complete document along with other documents above.
2. Submit the document along with input form at the token window and get the token
3. Wait till the token number is announced.
4. On token number being announced, all parties to the document must present themselves
before the sub-registrar to admit execution of the document, photographed, thumb
impression and signature taken on additional sheet of paper in presence of sub-registrar.
5. Pay the required registration fees and computer service charges in cash as per the
receipt (Computer service charges are @ Rs.20 per page)
6. The document will be returned within 30 minutes of getting the receipt
7. Please deal only with Officers and staff of the Registration Department who always
display government identity card with Government Seal.
If any person who has executed the document is unable to come to sub- registrar’s office on
medical grounds, then what should he do?
In case a person is unable to attend the office of the sub-registrar on medical grounds, then
he should apply to the sub-registrar through a duly authorized representative stating the
fact. The sub-registrar is bound to visit such person after office hours i.e. morning 9.00 a.m.
to 10.00 a.m. and in the evening 5.00pm to 6.00 pm. That person shall admit in execution
in presence of that sub- registrar, affix his photograph and sign and put his thumb
impression on the document. The sub-registrar will take the document with him and
complete all the formalities and process of registration.
The offices of Sub-Registrar of Assurance in Greater Bombay are located at the following
places –
1. Sub-Registrar of Assurances,
Old Customs House,
Ground Floor,
Shahid Bhagat Singh Marg,
Ph: 266 2853 Timings: 10 : 00 a.m. to 4 :30 p.m.
Lunch: 1 : 00 to 1 : 30 p.m.
2nd and 4th Saturdays and Sundays closed.
2. Sub-Registrar of Assurances,
Griha Nirman Bhavan,
Ground Floor,
Bandra (E),
Mumbai 400 051. Ph:642 2161
Timings: 10 : 00 a.m. to 4 : 30 p.m.
Lunch: 1 : 00 a.m. to 1 : 30 p.m.
2nd and 4th Saturdays and Sundays closed.
3. Sub-Registrar of Assurance,
Town Hall,
Collector's Office Compound,
Thane (West).
4. Sub-Registrar of Assurances,
Vasai (West).
5. Sub-Registrar of Assurances,
Opp. Station, Kalyan (West).
(2nd and 4th Saturdays and Sundays closed..)

To top