Yes, there is stamp duty on resale flats. Do you want to know why? It is because it’s a mandatory legal fee imposed on property transactions, regardless of whether the property is new or being resold. You must understand before buying, stamp duty is a tax paid to the state government to validate the ownership transfer of the property. This charge is usually 5% of the deal value. Read on to know more.
Do We Need to Pay Stamp Duty on Resale Flat?
Stamp duty is levied on resale property to legally document the transfer of ownership of the flat from the seller to the buyer. It ensures that the property purchase agreement is legally recognised and admissible as evidence in court if needed.
According to Section 3 of the Indian Stamp Act of 1899, the parties to the transaction must pay stamp duty on sale deeds.
Without paying stamp duty, the transaction is incomplete, and you may face legal challenges.
Stamp duty on resale apartments is determined by either the property's market value or the circular rate, which is the minimum value set by the government.
This charge varies from state to state and can range between 5-8% of the property value.
Some factors that affect stamp duty rates are resale property’s location, its age, and buyer type. Women buyers sometimes get a concession in certain states.
Besides stamp duty, buyers are also required to pay registration charges for registering the sale deed with the sub-registrar’s office. I hope you understand what is the stamp duty for resale flat.
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Wondering do we need to pay stamp duty on resale flat? Yes, stamp duty is applicable on resale flats. When you purchase a resale flat, you’ll need to pay stamp duty as per the prevailing rates in your state or region. Read on to learn more.
Do I Need to Pay Stamp Duty on Resale Flat?
Yes. The stamp duty amount is calculated based on the property’s sale value. Make sure to check the specific rates and guidelines applicable in your area.
When calculating stamp duty for resale flats, consider the following methods:
Ready Reckoner Rate / Circle Rate Method:
Stamp duty is based on the market value or circle rate of the property.
Example:
Circle rate in your area: Rs 5,000 per sq ft.
Property size: 1,000 sq ft.
Property cost as per circle rate: Rs 50 lakh.
Stamp duty rate: 6%.
Stamp duty payable: 6% of Rs 50 lakh = Rs 3 lakh.
State-Specific Rates:
Stamp duty rates vary by location and property type.
For resale flats, rates typically range from 5% to 8% of the market value.
I hope this answers your query whether stamp duty on resale property is applicable.
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What are the Registration Charges for Resale Flat?
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Is Stamp Duty Applicable on Resale Flats?
Ashish
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2020-09-24T11:27:36+00:00 2024-12-09T10:49:56+00:00Comment
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