Stamp duty is a tax imposed on legal documents related with land transactions, marriage licenses and other important dealings. It is collected under the provisions of Bombay Stamp Act of 1958 & Indian Stamp Act of 1899. In every selling or buying of property, stamp duty is levied. Its value is decided by the authorities i.e. the state government (specifically municipal corporation). One of the important things to know about stamp duty is that it is levied on the documents and not on the transactions.What is a sale agreement?Sale agreement is the agreement between the seller and the buyer symbolizing the dealing of property. The agreement needs to be registered through the government authorities. The charge of the registration is 1% which is payable on market value or agreement value, whichever is higher. However it is subject to maximum Rs 30,000.The stamp duty rates for sale agreement (includes flats, land, shop, office and industrial unit) are:5% stamp duty payable under Article 25(b) of schedule 1 of the Bombay Stamp Act 1958 for only properties under the jurisdiction of Municipal Corporation.Important Facts
- Stamp duty is payable on agreement value or market value, whichever is higher.
- Stamp duty must be paid at the time of registration otherwise penalty will be charged.
- 5% is the stamp duty + you have to pay 1% of market value/agreement value (whichever is higher) or Rs 30,000, whichever is lesser for registration.