Stamp duty for Sale Agreement in Hyderabad
Sir/ Madam, Would you be able to provide me answers to the following questions -
1) What is the stamp duty that should be paid for an unregistered Sale Agreement document in Hyderabad (Telangana). Is it 0.1% of the sale consideration? For example, if the sale consideration of a property is Rs 85 lakhs, what should be the stamp paper value?
2) What will happen if I pay a very low stamp duty like Rs 100/- for the Sale Agreement? Will the agreement be valid in a court of law?
3) What options do I have to pay stamp duty in Hyderabad? Is it e-Stamping? Or payment at the sub-registrar’s office? Or stamp paper? (Some states have abolished stamp paper due to stamp paper scams).
Asked in Property Law from Hyderabad, Telangana
1) stamp duty is a state subject and varies from state to state
2) as per information available on telengana govt website stamp duty on sale agreement without possession is 0.5%( minimum Rs 1000 maximum rs 20,000)
3) stamp duty on sale deeds is 4%of market value of property
4) local lawyer can guide you as to mode of payment of stamp duty
you can visit the following website https://registration.telangana.gov.in/saledeed.jsp for more information
1. The answer to question no.1 can be given by only a Hyderabad or Telangana based lawyer as stamp duty is not uniform throughout India.
2. The sale agreement will not be registered in the first place if you pay insufficient stamp duty. Even if it gets registered due to the incorrect computation by the clerk it will disqualify you from suing under it.
3. The answer to your last question can also be given by only a Hyderabad or Telangana based lawyer.
An unregistered sale agreement can be Rs. 100/- non-judicial stamp paper and it is sufficient at Hyderabad, Telangana. Rs.100 nonjudicial stamp paper is sufficient for an un registered sale agreement of property or total sale consideration worth Rs.85 lakhs. It is valid and admissible in the court or any other authority. Registration of an agreement of sale is not mandatory it is optional. Rs.100/-non-Judicial stamp paper is sufficient for an agreement.
1) Sale deed has to be compulsorily registered without which it is invalid.
2) For registration of sale deed the stamp duty(including transfer fee) is 5.5% and registration charges is 0.5% of Fair market value of property.
3) For Fair market value of properties you have to refer to index of FMV maintatined by sub-registrar office .
4) Generally the stamp duty is based on Sub-registrar office value or Consideration which ever is higher.
5) Stamp duty is now paid to the treasury through State bank of India/ State bank of Hyderabad. For making payment in banks, the sub-registrar needs to provide you the bank account number of Treasury and in some cases they will also issue an temporary transaction ID number so as to ensure easy collation of data at a later date.
6) Mere purchase of stamp papers(irrespective of value of stamp papers/franking etc) and having the document signed by both the parties is NOT enough. The document has to be registered compulsorily at the sub-registrar office by both the parties, in presence of witness and after thorough evaluation of Title, Identity of parties, Fair market value of property by Sub-Registrar office.
7) Please be informed that certain properties are likely to be in prohibited lists and these properties can never be registered at any point of time. So better to enquire with sub-registrar office before proceeding.
1. There will be no stamp duty for unregistered document or unregistered sale agreement.
Stamp duty shall be applicable only for the registered documents.
2. An unregistered sale agreement is not valid in the court of law
3. This is a local subject, you can contact any document writer who wold be able to guide you the local procedures.