CA Lecture Stamp Duty Registration Final Mumbai 90930

Stamp Duty and Registration – Law & procedural aspects

By Sunit Gupta. Real Estate Valuer & Co-Author of Stamp Duty Ready Reackoner

STAMP DUTY

Stamp duty.

Stamp Duty is a tax, similar to sales tax (VAT) and income tax collected by the

government. Stamp Duty is payable under Section 3 of The Bombay Stamp Act,

1958. Different amount of Stamp Duty is payable for different types of document as

per Schedule–I of The Bombay Stamp Act, 1958. Stamp Duty must be paid in full

and on time. If there is a delay in payment of stamp duty, it attracts penalty. A stamp

duty paid document is considered a proper and legal document and as such gets

evidentiary value and is admitted as evidence in court. Document not properly

stamped, is not admitted as evidence by the court.

Different types of stamps.

There are different types of stamps under stamp act having different uses.

1. “Share Transfer” Stamps

2. “Insurance” Stamps

3. “Notarial” Stamps

4. “Revenue” Stamps

5. “Court Fee” Stamps

6. “Special Adhesive” Stamps.

[6A. “Foreign Bill” Stamps

6B. “Advocate” Stamps, “Vakil” Stamps, “Attorney” Stamps

6C. “Agreement” Stamps, “Brokers Note” Stamps

Note : - Types of stamps mentioned in numbers 6A to 6C exist in rule book with limited use and

are noted here for information only. (See rule 19(a), (c) & (f) of The Bombay Stamp Rules,

1939)]

For payment of stamp duty following methods can also be adopted

7. “Non Judicial” Stamp Paper

8. “Court Fees” Stamp Paper

9. Franking of Stamp Duty

10. Adjudication Certificate.

For all practical purposes Special Adhesive Stamps are used for all types of

documents, however different stamps like Share Transfer Stamps is used on share

transfer forms, Insurance stamps are uses by insurance companies on insurance

policies, Notarial Stamps is used by Public Notary for Notarizing the documents,

revenue stamps are used on receipts above Rs.5,000.

Court fees stamp is not a tax but fees for judicial services granted and is used in all

court, semi-judicial and government office while making applications.

Instead of affixing Stamps for payment of stamp duty even stamp papers can be used.

Non Judicial Stamp paper can be used instead of Special Adhesive stamps and has

the same effect.

Court fees stamp papers are used for court purposes, i.e. it is the method by which

court fees is paid in the court, by way of submitting required amount of stamp paper

to the court.

Now a days instead of physical stamps or stamp papers, Stamp Duty Franking

machine is used to affix Stamp duty by way of impression on blank paper.

Further Stamp duty can also be paid directly to the collector of stamps who affixes

his seal and stamp for the amount received after a procedure called adjudication and

hence the same is called adjudication certificate.

Stamp duty, when payable.

Stamp duty is payable either before execution of the document or on the day of

execution of document or on the next working day of executing such a document.

Execution of a document means putting signatures on the document by the persons

who are party to the document. However it is advisable to pay stamp duty before

executing the document, for all practical purposes.

Penalty for the delayed payment of stamp duty

If stamp duty is not paid on time, it attracts penalty at the rate of 2% per month on the

deficit amount of the stamp duty. However maximum penalty can be only 200% of

the deficit amount of the stamp duty. Minimum penalty is Rs.100.

Documents lodged with the sub-registrar/Collector of stamps prior to any amnesty

scheme will attract a reduced penalty, as applicable under that amnesty scheme, as

the case may be.

Stamp duty, by whom payable.

In the absence of any agreement to the contrary, the purchaser/transferee has to pay

stamp duty or in case of exchange of properties, both parties have to bear stamp duty

equally.

Documents on which stamp duty is to be paid

Under The Bombay Stamp Act, 1959, stamp duty is to be paid on all the documents

by which any right or liability is or purports to be created, transferred, limited,

extended, extinguished or recorded but does not include a cheque, promissory note,

bill of exchange, bill of lading, letter of credit, policy of insurance, transfer of shares,

debentures proxy and receipt, which is charged under Indian Stamp Act, 1899.

Stamp duty payment, document v/s. transaction

Stamp duty is payable on document and not on transactions. Stamp duty should be

charged on the basis of the contents of the document only. If any information

essential for working out stamp duty is missing in the document, stamp duty

valuation officer can ask for the same. Information such as the Carpet or Built-up

area of the flat, number of floors in the building, year of construction, name of

Division/Village and C.S./C.T.S. number of plot of land on which property is situated

must be mentioned in the agreement.

Stamp duty on documents relating to transfer of immovable property

Except transfer by will and by nomination in a co-operative housing society all

transfer documents including agreements to sell, conveyance deed, gift deed,

mortgage deed, exchange deed, deed of partition, power of attorneys, leave and

licence agreement, agreement of tenancy, lease deeds, power of attorney to sell for

consideration etc have to be properly stamped before registration.

In our opinion when a nominee transfers the flat subsequently in the name of legal

heirs, that transfer Document is to be stamped as a Transfer as per Article 59 of

Schedule – I of The Bombay Stamp Act, 1958, as nominee is a trustee and legal heirs

are beneficiary.

If you have purchased a flat in a co-operative housing society on or after 10-12-1985

you have to pay the stamp duty on market value as per the Ready Reckoner. A flat

purchased through an agreement for sale on or before 09-12-1985 required stamp

paper of Rs.5 only. However a flat purchased on or before 09-12-1985 will require

stamp duty on market value at the time of conveyance of the property in favour of the

society. The concept of payment of stamp duty on market value was introduced from

04-07-1980. Property purchased prior to 04-07-1980 will be charged on agreement

value only.

Relevance of the dates 10-12-1985 and 04-07-1980.

A flat purchased in a co-operative housing society on or after 10/12/1985, attracts

stamp duty on market value at the time of signing the agreement itself. However,

prior to 10/12/1985, such transactions of agreement for sale required a stamp paper of

Rs.5 only at the time of signing the agreement. However stamp duty on market value

will have to be paid on all such transactions at the time of conveyance of the property

in favour of the society.

From 04-07-1980 market value concept was introduced to pay stamp duty. However,

prior to 04-07-1980 there was no market value concept hence agreement value was

accepted for stamp duty payment.

Rate of stamp duty.

Stamp duty is chargeable on various documents as per different rates as per

Schedule –I of the Bombay Stamp Act, 1959.

Stamp duty on document relating to sale/purchase of residential flat in a co-operative

housing society and buildings covered under Article 25(d) of Schedule I of Bombay

Stamp Act, 1958, attracts concessional rates depending upon it's market value as

follows.

Market Value of Flat Stamp Duty

Upto Rs.2,50,000/- Rs.100

Between Rs.2,50,001 to 5,00,000/- Rs.100 + 3% of the value above Rs.2,50,000/-

Rs.5,00,000/- Rs.7,600/-

Above Rs.5,00,000/- Rs.7,600 Plus 5% of the value above Rs.5,00,000/-

Stamp Duty on Non-Residential Property is straight away 5% of the market value.

Stamp duty on document relating to Leave & Licence under Article 36A(a)(i)(1) of

Schedule I of Bombay Stamp Act, 1958, for residential property in city of Mumbai is

as follows.

Annual average rent, including

advance rent & deposit

Stamp Duty

Upto Rs.2,50,000/- Rs.750 for each period of 12 months or part thereof

Between Rs.2,50,001 to 5,00,000/- Rs.1,500 for each period of 12 months or part thereof

Between Rs.5,00,001 to 20,00,000/- Rs.3,000 for each period of 12 months or part thereof

Rs.20,00,001/- & Above Rs.5,000 for each period of 12 months or part thereof

Stamp Duty on Leave & Licence of Non-Residential Property is double of residential property.

Purchase of stamp paper.

From 01/05/1994 stamp papers are to be purchased in the name of one of the parties

to the document. If the stamp paper is not in the name of the parties and if it is used

for preparing the agreement then such agreement will be treated as if no stamp paper

was used. However, it will not make the agreement invalid and can be enforced in

law if proper stamp duty is paid subsequently. Prior to 01/05/1994 stamp paper could

be purchased in any name.

Validity period of a stamp paper.

Stamp paper purchased upto 30/11/1989 was valid for any period of time. However

from 01/12/1989 all stamp paper (whether purchased before, on or after 01/12/1989)

is valid for a period of six months only from the date of purchase thereafter it is

treated as ordinary paper as if it has no stamp.

However Court fee stamps and Court fee paper is valid for any period of time as there

is no time limit specified in The Bombay Court fees Act, 1959, for its use.

Ascertaining the amount of stamp duty & adjudication.

One can find out the market value of a property and the proper stamp duty with the

help of Stamp Duty Ready Reckoner released every year on 1st January.

One should know the District Name, Taluka Name, Village name and Gat No./

Survey No./ CTS No. as applicable to the property. This information is available

from property card or 7/12 extracts of the land on which the property is situated

and a copy of property card or 7/12 extracts is generally available from the society

office or from Original Builders agreement or original purchase / conveyance

deed.

From the Ready Reckoner, locate valuation zone and sub-zone with the help of the

village name and and Gat No./ Survey No./ CTS No. of the property.

From the Ready Reckoner, find the market rate per square metre, then multiply the

rate with the built-up area of property in square metres. You will get a value.

Reduce or increase this value for lift and depreciation as per valuation factors

given in the Ready Reckoner and you will get the market value. Find out the

stamp duty amount with the help of stamp duty rates table.

The Stamp Duty Ready Reckoner is public document which can be inspected in

the sub-registrar’s office.

The Department also does this procedure, which is known as adjudication.

(i) For adjudication, one can apply to the Collector of Stamps along with a copy

of the agreement containing details of the property.

(ii) Adjudication fees payable is Rs.100/-.

(iii) In case of a signed document, adjudication must be done within one month

otherwise two per cent interest per month will be levied as penalty from the date

of signature.

(iv) An adjudicated unsigned document is valid up to six months from the date of

adjudication order or up to December 31 of that year, whichever is earlier.

Payment of Stamp duty after adjudication.

If the agreement is signed before adjudication, one has to pay stamp duty with

interest and penalty as applicable. However, in the case of an unsigned agreement,

one may ignore the adjudication order and close the matter if so desired.

Stamp duty payable on family transfer.

Stamp duty will be the same as applicable to conveyance. However, in the case of a

gift deed between family members, the stamp duty amount is arrived as per article 25

relating to conveyance or 2% of the market value, whichever is lower.

Stamp duty payment centers.

Stamp duty can be paid legally without adjudication, on the basis of the Stamp Duty

Ready Reckoner, at various banks, post office and financial institutions, who are

granted licenses on this behalf by the Stamp duty department, and does stamp duty

franking on blank documents.

Apart from above offices there are also various authorised stamp vendors from whom

stamp paper of the required amount can be purchased and agreement made on them,

which is another way of paying stamp duty. Stamp vendors sell stamp papers of face

value up to Rs.10,000. A list of Licenced Stamp Vendors is displayed at General

Stamp Office. However it is advisable to pay stamp duty by way of franking for big

amounts for all practical purposes.

Refund of stamp duty

Refund is granted on

(i) spoiled paper,

(ii) blank document,

(iii) document executed but afterwards found to be unfit due to some reason and

(iv) in some cases of documents executed and registered.

as follows.

(a) In case of spoiled paper or blank document whether franked or on stamp paper,

refund should be claimed within six months from the date of purchase of stamp paper

or franked Document.

(b) In case of document executed but afterwards found to be unfit due to some valid

reason, refund should be claimed within six months from the date of purchase of

stamp paper or franked Document.

(c) In case of documents which are executed and registered but for some reason

physical possession of property mentioned in the Document has not been handed over

to the purchaser then in that case refund should be claimed within two years from the

date of document. (Government is considering to grant refund also in case the builder

has cheated the flat buyer)

An application for refund on a standard format should be submitted at the concerned

Collector of Stamps office, along with the original document and an

acknowledgement should be obtained. Subsequently one must follow up with the

officer concerned for early disposal of the case. Standard format of refund application

along with checklist/formats of other papers/affidavits/power of attorney required

with application is available at concerned collector of stamps office.

Refund is granted strictly as per the provisions of section 47 to 52A of The Bombay

Stamp Act, 1958 and relevant rules and notification. Hence one is requested to

thoroughly check about provisions, rules and notifications and treat above

information only as a general guideline.

Collector of Stamps are very strict in regards to refund and a mistake in any of the

refund application paper will lead to rejection of refund hence proper legal help

should be availed if one is not very clear about the provisions of law.

Some consultants claim to get the market value reduced to save a substantial

amount of stamp duty. Is this correct?

Many people are under the impression that some consultants can help them in

reducing the stamp duty. This is warn them that this can be done only by furnishing

misleading information like wrong Gat No. / Survey No. / CTS No., less area of

premises/flat, longer age of building and a building with a lift as not having a lift.

This would prove to be very detrimental and harmful when, in future, they receive a

notice from the department for under-valuation due to concealment of facts. Even a

registered document can be reopened anytime within ten years from the date of

registration and adjudicated documents within six years from the date of adjudication.

Please note that writing misleading information in the agreement is an offence under

the Stamp Act, which is punishable with fine and imprisonment.

Stamp duty payment. Agreement value V/s. Market value.

Stamp duty is payable on the market value of property. Market value of any property

is determined by the stamp duty Authorities on the basis of the Stamp Duty Ready

Reckoner issued by the government every year on January 1. If the consideration

amount is higher than the market value, the consideration amount will be treated as

market value. However where property is sold or allotted by a government or

semi- government body or a government undertaking or a local authority such as LlC,

CIDCO, AMC, the Income Tax Department on the basis of predetermined price, then

that value is accepted as market value for the purpose of stamp duty.

Market value.

Market value in relation to any property which is the subject matter of the document

means the price which such property would have fetched if sold in the open market

on the date of execution of such document or the consideration stated in the

document, whichever is higher. However, for payment of stamp duty, market value is

the value as worked out as per the Stamp Duty Ready Reckoner or the consideration

stated in the document, whichever is higher.

As per Section 50C in the Income Tax Act, the market value for the purpose of

capital gain tax for seller is the same as the market value for stamp duty payment,

which is worked out as per the Stamp Duty Ready Reckoner. Hence it is advisable

that the seller should record the actual selling price worked out with the help of

Ready Reckoner and avoid under-valuation with the intention of saving capital gain

tax.

Further as per newly inserted Section 56(2)(vii) in the Income Tax Act, w.e.f.

01/10/2009 if the difference between the “stamp duty value” and the consideration

amount exceeds Rs.50,000 then such difference shall be treated as income from other

sources of the purchaser of immovable property.

Thus it has become very important for a professional to know all the intricacies of

working of “stamp duty value” as, after recent amendments, now all purchase or sale

of immovable properties will result into litigation with Income Tax authorities as it

will result into higher capital gains tax (Section 50C) for seller & also higher income

tax on Income from other sources (Section 56(2)(vii)) for the purchaser.

Depreciation.

Depreciation is allowed on structure which is more than 2 years old. It is allowed on

the full value of the property which includes land component. Though in realty it is

the structure which depreciates and not the land. Depreciation varies from 5% to

70% of the value. However if by this method, value comes below the land value then

value of land + depreciated cost of construction is taken.

Other additions or deductions to the market value

If the building has lift it’s value will increase by 5% to 20% depending upon the floor

on which the flat is situated.

If the building is only of ground + four floor or less without lift then 2nd, 3

rd and 4

th

floor qualifies for 5% to 20% deduction.

Stamp duty on exchange of flats.

Stamp duty is payable as per Conveyance Deed on the market value of the property

of the greatest value.

Generally one copy of Exchange Agreement is made and Registered and then various

practical difficulties arise at a later date, like as to who will keep the original, what in

case if one of them wants to take the loan against his flat, what if both of them want

to take loan from different banks for their respective flats, what if the person having

original sells and goes away and new owner does not co-operate with original owner.

Following precautions should be taken to avoid any complications in future.

a) Assuming there is one “Flat-A” owned by “Person AA” and he wants to

exchange it with “Flat-B” owned by “Person BB”. In the Exchange Agreement

there should be a clause where it states that original agreement will be considered

original agreement for “Flat-A” and will remain with it’s new owner “Person BB”

and second copy will be considered original agreement for “ Flat-B” and will

remain with its new owner “Person AA”.

b) Agreements should be made in duplicate. Original Agreement will be charged

with full Stamp Duty and second copy of Agreement will be charged only with

Rs.100.

c) Both of the agreements must be registered. Original agreement will be charged

with full registration fees and second copy will be charged very nominal amount of

registration fees below Rs.500.

d) Both the persons must keep their respective copies and will be free from each

other in all respects without any botherations.

Mode of measurement.

Stamp Duty charged on the basis of Built-up area of the premises. Built-up area is

taken to be 20% more than the carpet area. Hence all the documents must record

either carpet area or Built-up area in Sq.Mtrs only. There is no recognition to Super

built-up area or Saleable area hence the same should be avoided in the agreement to

avoid excess payment of stamp duty.

Rates mentioned in the stamp duty ready reckoner for Land is per Sq.Mtr.

considering F.S.I to be 1 and rates mentioned for buildings whether Residential,

Office, Shop (Commercial) or Industrial are for per Sq.Mtr. Built-up area (Rate is

inclusive of the value of land). Stamp duty should be paid on Built-up area only and

not on carpet area or super built up area.

Previously when it was difficult to determine built-up area and if carpet area was

mentioned in the agreement then the same was increased by 20 percent to arrive at

built-up area. Also if Super Built-up area was mentioned in the agreement then 20

percent was reduced from Super Built-up area i.e. 80 percent of Super built-up area

was Built-up area. But Stamp Duty and Registration department has now withdrawn

above method partially and adopt uniform method as mentioned in valuation factor.

This mode of calculation was primarily a shortcut to an acceptable solution when

built-up area was not mentioned in the document. It should never be adopted to

calculate carpet area from the super built-up area or vice versa, because arithmetically

it will never give correct figure.

Relation Between Square Feet & Square Meter

1 Sq.Mtr. = 10.764 Sq.ft.

1 Sq.Ft. = 0.0929 Sq.Mtr.

REGISTRATION

Registration

As per section 17(1) & Section 17(1A) of The Registration Act, 1908, various

documents relating to transfer of movable and immovable properties are required to

be registered. Registration is legal formality wherein the document, which is required

under the law to be registered, undergoes the following procedure by the Sub-

Registrar of Assurance of the respective district. After completion of these

procedures, the document is regarded as being registered.

The Sub-Registrar of Assurance does the following:

(i) He verifies the document to ascertain whether it is legal to register such a

document.

(ii) He further verifies that full stamp duty is paid on that document before

registration.

(iii) In his presence all parties, executing the document, admit that they have

executed the document presented for registration. Parties who are present

and admitting to execute the document are then personally identified by two

independent witnesses. All the parties and all the witnesses present, again

sign in the presence of sub-registrar on an additional page attached to the

document.

(iv) Parties to the document are photographed and their left hand thumb

impression is taken and such photograph and thumb impression is affixed on

additional pages attached to the document apart from coloured photographs

and thumb impression which a person affixes in the agreement while

executing the document. Now a days photographs & left hand thumb

impression of witnesses is also affixed.

(v) He puts his official seal on each page and puts a unique numbering block on

each page of the document including the additional pages. On the last page

he signs the document as being registered.

(vi) After completing the above procedure, he records the content of the

document, including the additional pages, either by photocopying the content

or by scanning the content of the document. The photocopy or scanned

image is permanently retained by him in his records so that in future

whenever a copy of the document is required it can be obtained. Such copy

becomes a public document, which anybody can inspect by paying the

requisite inspection fees and can obtain a certified true copy.

(vii) After taking a copy of the document, as mentioned above, on the record and

after completing the above formalities original document is handed over to

the party for obtaining one photocopy of the registered document. Photocopy

should be taken on only one side of paper and paper should be of 90 GSM

thickness and there should be butter paper in between two sheets of the

photocopy. After original and photocopy is given back to sub-registrar, he

verifies the original and the photocopy and then the original document is

returned to the party presenting the document for registration. This

completes the whole process of registration.

Registration of transfer of immovable properties

Except in case of transfer of shares of a co-operative housing society and housing

limited company where registration is optional, virtually in all cases of transfer of

immovable property like family arrangement, agreement to sell, conveyance, gift

deed, lease deed, leave and licence agreement, tenancy agreement, declaration deed,

mortgage deed, exchange deed, power of attorney to sell for consideration etc has to

be registered compulsorily under Indian Registration Act 1908 otherwise the proper

legal title will not pass on to the purchaser/transferee i.e. the title will be defective if

registration of the document is not done.

Languages of the document.

Document should be normally in English, Hindi, Marathi and Gujarati only, in

Maharashtra.

Effect of non-registration.

If a particular document is required to be registered under the act and is not registered

then as per Section 49 of The Registration Act, 1908, that document becomes

inadmissible in the court of law. In other words it loses its legal validity in the eyes of

law.

Return of registered document.

After February 1, 2002, when the registration process was computerised, normally

documents are returned on the same day within half an hour.

All the documents lodged for registration on and from October 1, 1995 upto January

31, 2002 are returned to the party within a few days of indexing the same because

only the photocopy is sent to Pune for Microfilming / Scanning.

Documents lodged for registration prior to October 1, 1995 are sent to Pune, after it is

indexed, for microfilming / Scanning and then only it is returned to the party, which

may take a few years.

The above mentioned procedure is one of the reasons but the major reasons due to

which the document remained pending at the office of sub-registrar and not being

indexed and not returned to the owner, are as follows:

(a) Stamp duty was not paid according to the “market value”.

(b) Income Tax Clearance certificate U/s 230 was not attached where required.

(See Note (i) below.)

(c) N.O.C. of Appropriate Authority in Form 37-1 was not attached where

required. (See Note (ii) below.)

(d) N.O.C. under Urban Land Ceiling Act was not attached where required. (See

Note (iii) below.)

(e) Certain parties to the agreement had not admitted execution in front of the

Sub-registrar.

The above deficiencies were always pointed out by the sub-registrar at the time

of registration by way of remark (such as MV, 230A, 37-1, NOC, ADM) on the

registration receipt itself but due to ignorance, owners have never cared to clear them

and hence documents have, over the years, got accumulated in the office of the Sub-

registrar.

With effect from 17/08/2000 Sub-registrars are accepting documents which do

not have any of the deficiencies mentioned under point (a) to (d). However deficiency

relating to non-admission is tolerated and the document is accepted and kept pending

for admission only.

Notes:

(i) Income tax clearance certificate under Section 230A of Income Tax Act, 1961, is now not

required from 01-06-2001 even for documents accepted for registration before 01-06-2001

because requirement for such certificate was on the day of registration and a document is

considered to be registered on the day it is Indexed and if it is not indexed uptill now no

Income Tax Clearance certificate is required even for old cases, hence for all such cases one

should pursue the matter and his document will be registered.

(ii) N.O.C. of Appropriate Authority in Form 37-I is also not required from 01-07-2002. As

above NOC is now unobtainable this is applicable even for old cases.

(iii) Urban Land Ceiling Act is repealed from 6th December 2007 in the state of Maharashtra,

hence producing this N.O.C. is no longer required.

Time limit of registration.

The document should be registered within four months from the date of the

execution. If the document could not be registered within four months, then it can be

registered within an additional period of four months after paying penalty as imposed

by the sub-registrar. Penalty can be legally upto 10 times of registration fees.

Normally this penalty is charged at the rate of 2.5 times of the registration fees per

month for the delay beyond the permissible 4 months.

After a period of 8 months from the date of the execution, the document cannot be

registered.

Registration fee

The registration fee is a fee for the service provided by the sub-registrar's office, of

recording and storing the document for years together and in the proper condition. If

one does not pay registration fees, he will not be able to register the document and

will be deprived of these services but there is as such no penalty for non-payment as

is the case of stamp duty. So whenever a person goes for registration he is charged

the same registration fees as is chargeable on his document on the date of registration

and no interest etc. is charged. However one must keep in mind that when one goes

for registration after four months and before eight months of execution of document

he is charged a penalty which could be up to 10 times of registration fees. This is the

penalty for delay in presenting the document before the registrar and is not a penalty

for non-payment. Normally this penalty is charged at the rate of 2.5 times of the

registration fees per month for delay beyond the permissible 4 months.

The Registration fees is one per cent of the market value or Rs.30,000, whichever is

less in case of documents pertaining to sale or conveyance. This is applicable from

01-04-2003 to date.

Registration fees is payable by Pay-Order and Computer Service charges is to be paid

in cash at the time of registration. Computer service charges at the rate of Rs.20/- per

page is charged in addition to above Registration fees. i.e. if document to be

registered is of property with market value of Rs. 35,00,000/- and having 30 pages

then total registration fees plus service charges would be Rs.30,000/- + Rs.600/- =

30,600/- of which amount an official receipt would be issued. It is advisable that

along with Pay-order exact cash amount should be paid at registration counter in

one’s own interest.

Requirements at the time of registration.

Document should be correctly stamped as per the Stamp Duty Ready Reckoner so as

to confirm that proper stamp duty has been paid. Stamp Duty Ready Reckoner is a

public document and is available for inspection at sub-registrars office, it is easily

available in the market in any law book shop.

For registering documents relating to property, one should go to their respective

Registration Office along with, original document. The document must be printed or

typed on one side only and in black colour.

Apart from a properly executed and fully stamp duty paid document which is to be

registered following other documents are also required before registration procedure

is initiated.

(1) If the land belongs to Government or Semi-government body or to Charitable

trust, the No Objection Certificate of such Government or Semi-government

body or of Charity Commissioner. (This requirement is struck down by the Hon. Supreme Court, however this document is still asked under some pretext or the other.)

(2) Property Card of the Land on which the property is situated. This requirement

is irrespective of whether land is sold or building is being sold or any part of

the building is being sold and also irrespective of whether the seller of property

is recorded as owner on property card or not. In other words even flat owners

are expected to produce this paper at the time of registration.

(3) If property sold/purchased is in old building and benefit of depreciation is

claimed on Market value then photocopy of any one of the following

documents is to be produced as a proof of old construction

(a) Municipal assessment bill of the building OR

(b) Building Completion certificate OR

(c) Building Occupation Certificate OR

It is better to get the document adjudicated in case building is very old and

proper depreciation is not given by the sub-registrar.

(4) Original stamp duty payment receipt.

(5) One should go along with two witnesses along with their photographs,

identification and residence proofs like pan card, ration card, driving licence

etc.

(6) Photocopy of Commencement Certificate or Completion Certificate or

Occupation Certificate or I.O.D issued by the Municipal Corporation is

required to prove that the Building is an authorized structure. (This requirement is

struck down by the Hon. Supreme Court, however this document is still asked under some

pretext or the other.)

(7) Registration fees is payable by Pay-Order and Computer Service charges is to

be paid in cash at the time of registration

(8) Mentioning of Income Tax PAN number is mandatory in all case of sale /

purchase document of value above Rs.5,00,000/-. Those who do not have PAN

number must file Form 60 along with documents.

(9) For property value above Rs.30,00,000/- an additional input form is to be filled

so that the sub-registrar can comply with formalities of All India Return under

Income Tax Act.

Process of registration.

(a) Visit the sub-registrar’s office with your document and he will inform you about

the amount of registration fees payable. He will also inform you about Stamp

Duty amount payable. Obtain a Pay-order of specified amount favouring that

Sub-registrar for registration fees. Pay specified stamp duty on the document.

(b) Take input form for registration from the registrar.

(c) Fix up appointment for registration 1 or 2 days prior to the intended date of

registration. Submit a photocopy of pay-order for registration fees on the day of

taking appointment.

(d) On appointed date and time bring complete document along with other documents

mentioned above.

(e) Submit the document along with input form at token window at least 30 minutes

before the time allotted for that token number.

d) On appointed time and on your number being announced all parties to the

document must present themselves before the sub-registrar to admit execution of

the document, photographed, thumb impression and signature taken on additional

sheet of paper in presence of sub-registrar. Now even witness has to provide his 2

colour photograph and identification proof like pan card , driving licence etc.

(f) Pay the exact registration fees by way of Government Challan or Pay Order and

computer service charges in cash as per the receipt. (Computer service charges

are @ Rs.20 per page)

(g) Document will be returned within 30 minutes of getting the receipt.

(h) Please deal only with officers and staff of Registration department who always

display government identity card with government seal.

If any person who has executed the document is unable to come to Sub-

registrars office on medical grounds then what should he do?

In case a person is unable to attend the office of Sub-registrar on medical grounds

then he should apply to sub-registrar through a duly authorised representative stating

the fact. Sub-registrar is bound to visit such person after office hours i.e. morning

9.00 am to 10.00 am and in evening 5.00 pm to 6.00 pm. That person shall admit

execution in presence of that Sub-registrar, affix his photograph and sign and put his

thumb impression on the document. Sub-registrar will take the document along with

him and complete all the formalities and process of registration.

Procedure if more than eight months of signing the document have passed.

If more than eight months have passed since execution of document then the

document cannot be registered. However to safeguard and protect the interest of the

purchaser from any claim by seller or his legal heirs in future both the parties to the

documents should prepare a deed of confirmation and the said document should be

attached as an annexure to the said deed of confirmation. Both the parties should

register the deed of confirmation to which the original agreement has been annexed.

Original document must have been fully stamped and penalty upto the date of

registration/adjudication must have been paid.

In such a case it is the deed of confirmation which is considered as registered and

agreement annexed is not registered, however in future selling party will not be able

to raise any objection to such an transfer on grounds of non-registration.

If vendor dies after signing the document but before registration.

In such unfortunate circumstances there are two options.

a) All the legal heirs of the deceased vendor should apply to court for

probate/succession certificate and appeal to the court for passing and order granting

one of the legal heirs right to admit execution in front of Sub-registrar on behalf of

the deceased vendor.

This option, although is the most correct option, but as observed, court procedures do

sometime take very long time to complete and meanwhile mandatory 4 months

period under which the registration can be done passes away. Some time extended

period of next 4 months also passes away till the time court gives its order.

b) Under above circumstances, second best option is that the purchaser should get the

document registered single sided and then make a deed of confirmation stating the

fact of the circumstances and should be signed by the purchaser and all the legal heirs

of the vendor and this deed of confirmation along with copy of original single sided

registered document attached to it as annexure should be got registered. This will

prevent all the legal heirs, in future, from claiming any right in the property.

Certified copies of document/search report/Index II.

One must approach the concerned Sub-Registrar and make the required application at

his office.

In case the document/search report/Index II copy required is relating to period prior

to 01-02-2002 then the same will be available with in 7 days of making application. .

In case the document/search report/ Index II copy required is relating to period after

01-02-2002 then the same will be available on the same day of making application

between 5.00 P.M. to 5.30.P.M.

Office timings of Sub-Registrars are 10.00 am to 5.45 Pm.

CA Lecture Stamp Duty Registration Final Mumbai 90930

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Transcript of CA Lecture Stamp Duty Registration Final Mumbai 90930