Consulting In Stamp Duties & Taxes

Kanchans Associattes: Your Taxes & Stamp Duties Consultant

Get stress-free Stamp Duties advice in Taxes with Kanchans Associattes! We simplify property deals and legal paperwork, making sure you follow the rules and save money. Our experts at Kanchans Associattes are here to guide you through stamp duties, making the process easy and smooth. Trust us for straightforward advice and a hassle-free experience in managing stamp duties in the Lone Star State.

What is Stamp Duty and Taxes?

Stamp duty represents an extra expense when acquiring real estate, so it’s crucial to comprehend how it varies based on the property’s characteristics and location before purchasing it. Stamp duty charges are slightly higher in India as compared to most of the underdeveloped, developing and even developed countries. In most countries, stamp duty ranges between 1% to 5%, while in most of the major states of India the charges are higher than 5%.

What is Stamp Duty on Agreements?

Stamp duty works like an evidence of a deal closure, therefore, as per Indian Stamp Act 1899, the charges must be paid to measure records and keep transaction tracks. Stamping of agreements ensures its validity and legality, admissibility and enforceability in a court.

Under section 17 of the Indian Registration Act, there are certain agreements that if not registered lose their authenticity and thus these agreements compulsorily require to be stamped, as without stamp papers no agreement can be registered. Some of these agreements pertaining to immovable property are:

What is Judicial and Non-Judicial Stamp Duty?

Judicial and non-judicial are the two categories of stamp duties in India. While the non-judicial charges include stamp duty imposed on all real estate transactions, as a one-time payment on the overall value of the agreement, judicial stamp duties, also known as court fee, are charges imposed by the court over litigants.

How Stamp Duty & Registration Fees Are Calculated in India?

Stamp duty charges are applied on a circle rate so that in case a property is being owned at a transaction value lower than the prevalent circle rates, it can be applied on the circle rate value of the property. However, if the property transaction value is higher than the prevalent circle rate value, stamp duty will be charged as per the original value of the deal and not over the circle rate. To be precise, the stamp duty is calculated based on the value of the original transaction or the circle rate, whichever is higher.

In this ever-evolving legal landscape, understanding the art of drafting legal documents is indispensable for legal professionals seeking to excel in their practice.