Stamp Duty, the most crucial tax in real estate property transfer, varies according to individual state policy. Stamp Duty in Indore has witnessed remarkable volatility in 2019 and 2020, respectively. This comprehensive guide highlights how is stamp duty assessed in Indore, factors affection, how to pay stamp duty in Indore, and more.
How is Stamp Duty Assessed in Indore?
Stamp Duty is calculated and paid systematically in every state as per the imposed percentage of a property’s value. Firstly, the property value is defined either depending on the market price or from the sale agreement. Stamp Duty in Indore is currently 7.5% of the property price. This means a buyer has to pay 7.5 and 3% of the property price for Stamp Duty and Registration charges, respectively.
6 Factors Affecting Stamp Duty Rates in Indore
1: Age of the Property
The property’s age remarkably affects the stamp duty rate in Indore, which follows the policy of the Madhya Pradesh government. Newer properties charge higher stamp duty than older properties in Indore as their market price is higher.
2: Gender of Owner
Gender is often considered when calculating stamp duty in many states, but in the Indore of Madhya Pradesh, no concession is offered based on the owner’s gender. Both females and males have to pay 7.5% stamp duty with 3% registration charges.
3: Objective
Another factor is the objective of the property, which influences the stamp duty rate in Indore. The property can be residential or commercial. The stamp duty rate of commercial properties in Indore is higher than that of residential properties.
4: Location
Stamp duty in Indore also depends on the property’s location, as properties in municipal localities charge higher stamp duty than in rural areas.
5: Amenities
As properties with modern amenities have higher value, the stamp duty rate will automatically increase during the calculation.
Documents Needed for Payment of Stamp Duty in Indore
Having all the required documents during the payment process for stamp duty is crucial. Here is the list of the documents that must be prepared:
- Sale deed
- Title deed
- Property tax receipts
- Encumbrance certificate
- Sale agreement
- Khata certificate
- Aadhaar Card
- PAN Card
- Passport size photos
- Power of Attorney
- No Objection Certificate from the concerned authority
- Stamp duty and registration fees proof
- Occupancy certificate for new buildings
- Completion certificate for under-construction buildings
How To Pay Stamp Duty in Indore
There are both offline and online options to pay stamp duty in Indore. You can either opt for the sub-registrar’s office to pay it directly in person or via e-stamping.
Online Method:
The online method is simpler and time-saving than the offline process. Madhya Pradesh allows property owners to pay stamp duty charges through the Stamps and Management of Property and Documents Application (SAMPADA).
Step 1: You need to sign in to the official website of IGRS MP at https://www.mpigr.gov.in/indexEnglish.html.
Step 2: Then, in the E-stamp details search, you have to enter your e-stamp ID captcha, select language, and click on search.
Step 3: Later, you can proceed with the payment process of stump duty.
Offline Method:
For offline payment of stamp duty in Indore, you need to contact your locality’s sub-registrar’s office and complete the process in person.
3 Ways To Save on Stamp Duty Charges
1: Projects With Fewer Amenities
If you choose a property that does not offer many amenities, the price will be lower, resulting in a lower stamp duty.
2: Less Developed Areas
Properties in less developed areas charge lower rates than in posh areas. If you opt for a property in an underdeveloped area, the property will be cheaper, and you have to pay lesser stamp duty.
3: Invest in a Project that Offers Stamp Duty Exemptions
As stamp duty exemptions rebate the house owners who have paid stamp duty while purchasing the property in the same financial year, you can utilise this discount by investing in these properties.
Penalties for Not Paying Stamp Duty in Indore
As per Madhya Pradesh government policy, the stamp duty charges will be increased depending on the time frame.
- Delaying for 1 month: Double the amount of the registration fee
- Delaying for 1-2 months: Four times more amount of the registration fee
- Delaying for 2-3 months: Six times more amount of the registration fee
- Delaying for 3-4 months: Ten times more amount of the registration fee
Conclusion
What is the Stamp Duty in Indore?
Stamp duty is the most crucial charge in realty transfer, making a property legally safe. After witnessing a remarkable increment and reduction, Indore now charges 7.5% stamp duty and 3% registration fees.
How is Stamp Duty Assessed in Indore?
For stamp duty and registration charges, a buyer needs to pay 7.5% and 3% of the entire property price.
Factors Affecting Stamp Duty Rates in Indore
- Age of the Property
- Age of Owner
- Gender of Owner
- Objective
- Location
- Amenities
Documents Needed for Payment of Stamp Duty in Indore
- Sale deed
- Title deed
- Property tax receipts
- Encumbrance certificate
- Sale agreement
- Khata certificate
- Aadhaar Card
- PAN Card
- Passport size photos
- Power of Attorney
- No Objection Certificate from the concerned authority
- Stamp duty and registration fees proof
- Occupancy certificate for new buildings
- Completion certificate for under-construction buildings
How to Pay Stamp Duty in Indore?
You can pay stamp duty in both offline and online modes. You can go to the sub-registrar’s office for offline payment and opt for the official website for online payment.
4 Ways to Save on Stamp Duty Charges
- Consider the Circle Rate
- Projects With Fewer Amenities
- Less Developed Areas
- Invest in a Project that Offers Stamp Duty Exemptions
Penalties for Not Paying Stamp Duty in Indore
- Delaying for 1 month: Double the amount of the registration fee
- Delaying for 1-2 months: Four times more amount of the registration fee
- Delaying for 2-3 months: Six times more amount of the registration fee
- Delaying for 3-4 months: Ten times more amount of the registration fee
FAQs
Is there an e-filing option for stamp duty in Indore?
Yes, an applicant can opt for online payment of stamp duty via the official website: https://www.mpigr.gov.in/indexEnglish.html. Online mode is time-saving and simpler.
What is the current stamp duty in Indore?
Currently, the property owners in Indore need to pay 7.5% stamp duty and 3% registration charges.
Can cash be used to pay stamp duty in Indore?
Yes, cash is accepted in offline mode for stamp duty, but the limit is Rs. 25,000. You must pay via cheque or demand draft if the amount is more than that.
How can I get a refund of the stamp duty paid in Indore?
First, you must be sure about your eligibility for a refund. Later, you need to gather the necessary documents, including the original copy of the sale agreement, the original or certified copy of the cancellation deed, etc. Then, you have to fill out the application for a stamp duty refund and attach it with the required documents. You have to submit the document to the concerned authority and follow up the process until you get the amount.
Are first-time buyers exempted from stamp duty?
As per Section 80EE, first-time buyers are eligible for a concession of an additional Rs. 50,000 on interest on the home loan. In addition, the buyer must pay the principal repayment and interest deduction under Section 24.
