The value of the transaction is the most important factor on the basis of which stamp duty is levied on a real estate transaction. At this stage, it is important to note that the departmental administrations are responsible for setting a standard rate for land and other real estate below which a transaction cannot be recorded. Even when real estate is purchased at a value below the prevailing district rates, stamp duty is levied on the value of the property. In cases where the transaction is higher than the value of the district course, the royalty is calculated based on the commercial value and not the value of the circle rate. For example, if the contract value of an Rs property is 50 lakhs and the value is 40 lakhs according to the Rs reading receiver rate, then the stamp duty would be calculated on the higher value, i.e. Rs 50 Lakhs. Stamp duty and registration fees play a key role in this regard. The main goal of a buyer is to save stamp duty. The client or seller plays with this psychology of a buyer and seeks to minimize the value of the cadastre.
Some time ago, I wrote an article on how to reduce registration fees for real estate. It may or may not be beneficial in any case. Normally, buyers do not assess the impact of a low real estate registration value on the capital gain at the time of purchase. I always offer my clients a balanced approach. A stamp duty saving at the time of purchase may not offset the additional capital gain at the time of sale. The approach should be financially advantageous depending on the investment horizon, increase in value, order plate and various other factors. I will discuss this issue at length in my future speech. It is also worth mentioning the fact that States impose different fees for the registration of the same instruments in India. This is the reason why the stamp duty on real estate registration in India differs from state to state. Home buyers in Delhi pay 6% stamp duty on property registration, while it is currently 2% in Mumbai.
In Jharkhand, the registration fee is 3% of the value of the property. Since the registration of the property has financial and capital gains on a buyer. It is therefore important to understand the types of real estate registers. It can also affect a buyer`s bidding for a housing construction loan. For simplicity, I divided the cadastre into resale and construction. Each of the following types is unique, but can sound frequent. I share the overview and the common pros and cons. For concrete clarifications, you can post your questions in the comments section at the end of the contribution. 2. Under Building Properties: I discussed this topic at length in my article “Register Under Construction Property for Home Loan”.
This type of cadastre is executed only to benefit from a mortgage and is very risky. A buyer insures the risk of a client and the bank. . . .