• Stamp duty on a resale property within 1 year

Hello.

I am buying a commercial property. 1st Deed of Tranfer was done on 20th December 2019 between Builder and a Finance company. The Deed of Transfer mentions that the purchaser is a investor. 

I am told if I buy now which before 19th December 2020 then I will need to pay stamp duty on the differential amount of Sale Value registered on 1st Agreement and my agreement as per current stamp duty rates.

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Asked 1 year ago in Property Law
Religion: Hindu

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11 Answers

resale of a property within one year of buying it from a developer would result in the state collecting stamp duty only on the profit from the transaction


2) case of Bombay Stamp Act where investor goes in agreement with the builder under this sub-clause 5(g-a)(ii) benefits are given to investors who sell their units within a period of one years. In such a case, for the sale by the investor, the amount of stamp duty paid by the investor is set off against the stamp duty payable by the subsequent Purchaser, though the minimum payable by much Purchaser shall be Rs.1 000.

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

You don't have to pay stamp duty difference if the earlier title document is already registered.

If you are registering it now you should pay registration charges applicable now which is reduced. For sale agreement 2% till 31dec 2020.

It is advisable you take the help of a lawyer verify the earlier documents and proceed.

Thresiamma G. Mathew
Advocate, Mumbai
1629 Answers
207 Consultations

5.0 on 5.0

Dear Sir/Madam,

It is suggested that the said proposal is not in your favor and you are suggested to pay only for the value of the your property. 

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Hello,

  1. It is true that you need to pay stamp duty only  for the differential amount in comparison to the previous Agreement within one year between the builder and the first purchaser.
  2. Currently,till the end of December this year the stamp duty is slashed by 3% and is at 2%. This would mean that you have to pay stamp duty of 2%of the differential amount in the new Agreement.

 

S J Mathew
Advocate, Mumbai
3369 Answers
172 Consultations

5.0 on 5.0

If a sale deed or conveyance is done for the same property within 1 year of the first agreement for sale then the stamp duty is only Rs 100 

Yusuf Rampurawala
Advocate, Mumbai
6818 Answers
73 Consultations

5.0 on 5.0

Resale of a property within one year of buying it from a developer would result in the state collecting stamp duty only on the profit from the transaction. Maharashtra government has reduced stamp duty on properties from five percent to two percent until December 31, 2020. Post-December 2020, the government will levy three percent stamp duty on residential properties until March 31, 2021.

Ajay N S
Advocate, Ernakulam
3975 Answers
91 Consultations

5.0 on 5.0

1. In your case, it is a fresh sale from the said Finance Company and yourself.

 

2. You shall have t pay the full stamp duty afresh for registering the sale deed.

Krishna Kishore Ganguly
Advocate, Kolkata
26470 Answers
726 Consultations

5.0 on 5.0

- Since, you are going to purchase and executed the sale deed within one year , then you will have to pay only nominal stamp duty in the First agreement. 

Mohammed Shahzad
Advocate, Delhi
9473 Answers
107 Consultations

5.0 on 5.0

1. There is no separate provision for Stamp Duty for investors. Every Sale shall attract fresh Stamp Duty.

2. You advised not to fall into such traps, more so specifically since if there is a scrutiny in future, THEN your sale document would be impounded, leading to very heavy fines.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

The Maharashtra government announced a reduction in the concession period for payment of stamp duty from the existing three years to one year in case of resale of property.

This means that resale of a property within one year of buying it from a developer would result in the state collecting stamp duty only on the profit from the transaction.

Thus, if the sale is after three yearsstamp duty is applicable on the entire price quoted in the sale agreement.

The proposed rule means that sale of a property after one year of buying it would invite stamp duty on the entire price shown in the sale agreement, not just on the quantum of profit.

However, the benefit may not be much, since a sale within a year will entail higher capital gains tax. As of now, selling the property after three years will attract long-term capital gains tax, while if it is sold within that period, the tax can be as high as 33%.

Hence the vendor may try to get the capital gains amount from the subsequent buyer if he is made to pay the same, hence you may clarify that aspect and then proceed.

 

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

Dear Client,

Stamp Duty will be same as was paid earlier.

Jaswant Singh
Advocate, Gurugram
926 Answers
2 Consultations

4.8 on 5.0

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