Even if the signing of the sales contract does not mean that the sale is over, it is a decisive step in this direction. For this reason, buyers need to know precisely the conditions set out in the agreement. A contract of sale is a contract for the sale of real estate in the future. This agreement defines the conditions under which the property is transferred. How to save stamp duty and registration fees is a tricky issue. Before we discuss the same thing, let`s understand what stamp duty is. According to Wikipedia, stamp duty is a tax levied on documents. At the time of the transfer of ownership, i.e. the registration of the deed of sale, the buyer must pay stamp duty and registration fees to the government. Stamp duties and registration fees vary from state to state.
Some states offer a discount on stamp duty, for example.B. If the property is registered in the name of a woman, you can save stamp duty. In Delhi, the stamp duty to be paid is 6%, but if the property is registered in the name of a woman, the stamp duty to be paid is 4% of the total value of the deed of sale. Thus, you save the stamp duty of 2% of the sale value. For the benefit of readers, I list the current stamp duties in different states. These fees are indicative and subject to change. Some state governments also apply different stamp duties for different areas, such as cities and countryside. Mr. A buys a 1000 m² apartment in Delhi for Rs 1 Cr. Here is 1 Cr the market value of the apartment. Now, the sales contract should be executed for the full amount, i.e.
1 Cr, but you can save stamp taxes by registering the property in the circle or at the government control value. Circle Rate or Govt Guidance Value is the minimum value at which the property can be registered. In secular terms, govt Guidance Value or Circle Rate is the market value of real estate according to State Govt. It is always lower than the existing market value of the property. In this example, the circle rate or Govt Guidance Value Rs is 6500 psf, so the property value is 65 lakes according to Govt, while the actual market value is 1 Cr. The contract of sale may, or may not, lead to an actual sale of the property in question. Some stamp duty laws, such as the Maharashtra Stamp Act, provide for an agreement to sell real estate as an appropriate deed of transfer and are therefore subject to the same stamp duty as that applicable to the deed of transfer or deed of sale of real estate. Under these provisions, which require payment of stamp duty on a contract of sale, persons wrongly perceive a contract of sale as a deed of sale in due form.
Laws related to the registration of real estate transactions in India. This absolute rule is subject to the exception referred to in Section 53A of the Transfer of Ownership Act. Section 53A provides that, where the buyer has acquired ownership of the property, the property is the subject of the transfer, while fully fulfilling its part of the contract obligation, the seller is not entitled to disturb the ownership so granted to the buyer. It should be noted that Article 53A offers the proposed buyer protection against the contemptuous and pours out the contemptuous of the buyer`s troublesome property, but it does not heal the buyer`s ownership of the property. Ownership of the property remains in the hands of the seller. On October 31, 10, 2020, a 40-year-old man was arrested by Noida police for defrauding a bank of Rs 2 Crores, falsifying sales documents and using loans. On the same day, Madurai Principal Sessions Judge G Ilangovan granted early bail for registration of documents without prior verification to two sub-registrars arrested by the Dindigul District Crime Branch. . .