Sale agreement is the agreement that specifies that the sale has to be completed on the agreed date with the given terms and conditions. The sale agreement specifies that the property is to be transferred from vendor to buyer on the specified date as per terms and condition listed in the agreement. Government put tax on such agreements which is called as the stamp duty. Stamp duty rate for the sale agreement in thane vary with the location of the property. Thane stamp duty rate for sale agreement with effect from 25th April 2012 are as follows.
- If the location of the property is within the limits of any municipal corporation or any Cantonment area annexed to it or any urban area not mentioned in sub-clause (ii) then stamp duty will be 5 per cent of the property value.
- If the property is within the limits of any Nagar Panchayat or Municipal Council or Cantonment are annexed to it or any rural area within the limits of the Mumbai Metropolitan Region development Authority, or the Influence area as per the annual statement of rates published under the Bombay Stamp Rules, 1995 will be payable to the stamp duty of 4 per cent of the property value.
- If the property comes in the limits of any Grampanchayat area or any such are not mentioned in sub-clause (ii) then stamp duty for such will be 3 percent of the property value.
The important points which must be considered while paying the stamp duty for the sale agreement of the property.
- Stamp Duty is payable on the Agreement value or Market value, whichever is higher.
- Stamp Duty rate is same for residential property as well as the commercial property.
- Stamp Duty is charged on every Rs 500 or part thereof of the market value.
- Stamp duty on the sale agreement before the date 10-12-1985 is Rs 5 only.
- Stamp duty on sale deed prior to 4-7-1980 is payable on agreement value.
- Stamp duty must be paid when the agreement is executed. Late payment will be charged extra 2 per cent of deficit stamp duty amount per month and will be allowed for maximum 2 times of the deficit stamp duty amount.
- Few municipal corporations charge Local Body Tax (LBT) at 1 percent of market value of property, this 1 per cent tax is over and above the 5 percent of market value charged as regular stamp duty.