How can I Get the Refund of Stamp Duty?

Stamp duty is a tax paid on legal documents like property sale agreements, gift deeds, mortgage deeds, or lease agreements. However, in certain cases, individuals may be eligible for a refund of the stamp duty paid. Coming back to your query, how to get stamp duty refund? So, let me tell you, every state in India has its own set of rules and processes for refunding stamp duty. I have shared the general steps below, but before that, check.

Eligibility for Stamp Duty Refund

Refunds on stamp duty can be claimed in various scenarios, such as.

• If a property deal or agreement is cancelled.

• When the wrong denomination of stamp paper is bought.

• If the stamp paper was purchased but not used and remains valid for a specific time.

• When stamp duty is paid twice for the same transaction by mistake.

• When the stamp paper is damaged or has printing errors.

How Do I Get a Refund on Stamp Duty?

Here is the process you can follow.

• Draft an application addressed to the Sub-Registrar or Collector of Stamps requesting a refund and explaining the reason.

• Submit the application along with the required documents to the Sub-Registrar office.

• If the transaction was online, you might need to visit the relevant government portal where you paid the stamp duty and start the refund request there.

• The application will be verified by the concerned officials. They will check:

  • Whether the stamp duty was legitimately paid.

  • Whether the refund request is valid as per applicable laws.

  • Whether the stamp papers have been used or not.

• Upon successful verification, the competent authority will issue a refund order. In some states, the refund is issued after deducting a small administrative fee (usually 10% of the stamp duty).

You will get the refund through a cheque or direct bank transfer.

How to Get a Stamp Duty Refund Online?

For states using e-stamping systems (e.g., Maharashtra, Karnataka, Uttar Pradesh), the process is digitised.

1. Visit the e-stamping portal (e.g., Stock Holding Corporation of India Limited - SHCIL).

2. Log in with your details and upload the refund application and required documents.

3. Submit your refund request online.

4. Track the refund status through the portal.

I hope you get an idea of how to get stamp duty refund.

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To know how to get stamp duty refund, follow these steps:

1. Limitation Period:

• You must claim the refund within 6 months from the date of purchasing the stamps.

• For e-payments, the deduction is Rs. 1000 per challan.

1. Application Process:

• Apply to the concerned District Collector, Sub-Collector, Deputy Collector, R.D.O, or Tehsildar under Section 2 (9) of the Indian Stamp Act.

• Submit the application along with the original challan and receipt issued by the selected bank branch.

1. Verification and Certificate:

• The Sub-Registrar verifies the application, scroll, and other details.

• If genuine, a certificate is issued.

• The refund is processed after deducting 10% of the total stamp amount.

1. Grounds for Refund: 

You can claim a refund if;

• You paid excess stamp duty or penalty.

• You have unused or spoiled stamp papers.

• The document was canceled

•  (judicial/non-judicial mismatch).

• Court orders a refund.

• Stamp duty was deducted twice on the same document.

• You paid online stamp duty to different departments.

• The agreement with the builder/vendor was canceled.

1. Maharashtra Amendment:

Section 48 (property sales) of the Bombay Stamp Act allows flat buyers to get stamp duty refunded up to two years after canceling the agreement with the builder.

1. Agreement for Sale:

• If an agreement for sale of immovable property is registered and the seller refuses to give possession, apply for relief under Section 48 of the Bombay Stamp Act.

• Apply within 2 years from the execution or cancellation of the agreement.

1. Online Facilities in Maharashtra:

• The Maharashtra government provides online facilities for stamp duty refunds.

• Visit the Refund Module for easy access.

I believe this suffices your understanding about how to get a stamp duty refund.

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