Stamp duty evasion
Most people try their best to reduce the stamp duty payable on the purchase of property by any means. Some resort to giving wrong cts, area, gat or survey number while others falsely state the age of the building or the condition and amenities of the same.
But most of them are not aware that stamp duty evasion is a serious offence which can sometimes cause a fine many times that of the evaded amount and imprisonment too. Adjudicated documents can be reopened even 6 years from the date of adjudication.
Stamp duty cases can be reopened even 10 years after the document is executed and registered.
Stamp duty is calculated on the basis of the Ready Reckoner rates released by the govt every year. These rates vary from area to area. Generally, these rates are lower than the market rates.
Concession Grounds for Stamp Duty
The age of the building: Depreciation is allowed on a building 2 years old or more. Between 5% to 70% depreciation can be claimed on the total value of the structure (land plus building).
Whether a lift is present or not: If a lift is present in the building, its value will increase by 5% to 20%,depending on the floor that the flat is situated on.
Reduction can also be claimed if the building is 4 stories high without lift. Between 5% to 20% reduction can be claimed, depending on the floor.1st floor will get 5% reduction while 4th floor can claim 20% deduction.
If a govt body like SBI, Income tax, LIC etc sells a property, the price it sells at is considered the correct market price for the basis of valuation.
Here is a copy of the 2013 Ready reckoner for Navi Mumbai
Ref : DNA property. 12 may 2012
- Stamp duty refund rules (navimumbairealestate.org)