Guidelines to keep in mind while determining the amount of stamp duty

One can find out the market value of a property and the proper stamp duty with the help of Stamp Duty Ready Reckoner released every year on April 1st. For that, one should know the district name, taluka name, village name and Gat No./ Survey No./ CTS No. as applicable to the property. This information is available from property card or 7/12 extracts of the land on which the property is situated and a copy of property card or 7/12 extracts is generally available from the society office or from the original builder’s agreement or original purchase / conveyance deed. From the Ready Reckoner, one can locate the valuation zone and sub-zone with the help of the village name and Gat No./ Survey No./ CTS No. of the property.

Next, find the market rate per square metre, then multiply the rate with the built-up area of property in square metres. You will get a value.

Reduce or increase this value for lift and depreciation as per valuation factors given in the Ready Reckoner and you will get the market value. Find out the stamp duty amount with the help of stamp duty rates table.

The Stamp Duty Ready Reckoner is a public document which can be inspected in the sub-registrar’s office and also available online on the IGR website (For Maharashtra, log onto https://igrmaharashtra.gov.in/).

The Department also does this procedure, which is known as adjudication. For adjudication, one can apply to the Collector of Stamps along with a copy of the agreement containing details of the property. The adjudication fee payable is Rs.100. In case of a signed document, adjudication must be done within one month otherwise two per cent interest per month will be levied as penalty from the date of signature. An adjudicated unsigned document is valid up to six months from the date of adjudication order or up to December 31 of that year, whichever is earlier.

If the agreement is signed before adjudication, one has to pay stamp duty with interest and penalty as applicable. However, in the case of an unsigned agreement, one may ignore the adjudication order and close the matter if so desired.

Fact file

If any immovable property is gifted to a family member being husband, wife, brother or sister of the donor or to any lineal ascendant or decedent of the donor, then the amount of stamp duty will be calculated at 3% of market value of the property. However, if the residential and agricultural property is gifted to husband, wife, son, daughter, grandson, grand-daughter or wife of deceased son, the amount of stamp duty chargeable shall be Rs.200 only. In other cases, stamp duty shall be same as applicable to conveyance deed under Article 25. i.e., 5% of the market value of the property.

(The writer is a valuer of real estate and co-author of Stamp Duty Ready Reckoner)