Stamp Duty on Agreement for Sale prior to 10-12-1985 is Rs. 5 only


tax1By Santosh Kumar & Sunit Gupta

By Accommodation Times News Services
After the announcement of the Stamp Duty Amnesty 2008, there are some consultants and self designated specialists who are misguiding the people b strongly advising that full stamp duty will be charged on agreement for sale even prior to 10-12-1985. Not only that they are stressing that even the registered document will also attract stamp duty. Failing which 10 times the stamp duty amount will be levied as penalty at the time of conveyance. Most of the people are very much confused because at Stamp duty office they are not accepting documents prior to 10-12-1985 contrary to advise given by the consultants. Please note there is no denying the benefit of amnesty, because all such documents are duly stamped, hence they do not need further stamping, as such the benefit of amnesty does not arise.
Our office has been receiving several telephonic clarifications, since we are the publishers of the Ready Reckoner’s for all earlier years. To clarify this doubt GLOBUS spoke to Santosh Kumar, senior estate valuer and co-author of the Stamp Duty Ready Reckoner and Market Value of Flats in Mumbai / Thane, who clarifies the doubt as under.
The stamp duty on agreement for sale prior to 10-12-1985 is Rs. 5 only and no more stamp duty will be charged on all such documents. This point was also clarified by Dr Nitin Kareer, I.G.R. Maharashtra, during a public meeting held on 11-4-2004 at K.C. College, Mumbai. In this connection Law and Judiciary Department of the Government of Maharashtra, has also issued a clarification on 24-1-1995, the same is reproduced on backside, which is self explanatory. In view of this clarification all such documents can be annexed with the deed of confirmation on Rs. 100 stamp paper only and the deed of confirmation will be registered annexed with agreement for sale on Rs. 5 Stamp paper. There are several such documents already registered by the sub-registrar of assurance Mumbai, that can be inspected under the Right to Information Act. In case of difficulty one should not hesitate to contact I.G.R. Maharashtra, Pune.
The agreements for sale prior to 10-12-1985 are classified in two groups. One that is registered and another one not registered. As such these agreements will be treated differently at the time of conveyance in favor of the society. Here it is necessary to clarify that stamp duty was applicable even prior to 10-12-1985, but there was an option for payment at the time conveyance. However, for conveyance executed up-to 16-3-1988, residential flat up-to 650 sq ft carpet area was fully exempted from stamp duty and area up-to 1000 Sq ft was exempted up-to 60% of the stamp duty. Because of this provision there is a general notion that there was no stamp duty prior to 10-12-1985.
Now at the time of conveyance, stamp duty liability of all the present members must be cleared. For the liability of registered agreement on Rs. 5 Stamp paper, prior to 10-12-85, the market value (not agreement value) as on the date of agreement will be considered, as purchase price agreement value only, because market value concept was not there at that time. The document which is not registered will be valued as per present market value, subject to depreciation, and stamp duty will be charged, in all the cases, as applicable today.
Regarding Stamp Duty on documents executed on 10-12-1985 and there after, all such documents must be registered after paying the stamp duty, failing which penalty at the rate of two times (not 10 times) of the deficit stamp duty will be charged. During amnesty this penalty is maximum Rs. 1000 only. At the time of conveyance they will not be required to pay any duty again, against their respective flats.
Comparative chart of stamp duty liability on agreement dated 1981 is as per Table-B.
From this example it is clear that if the document is registered, stamp duty will be Rs. 2,200 only against Rs. 1,29,000 for non registered document.

Courtesy Globus

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36 thoughts on “Stamp Duty on Agreement for Sale prior to 10-12-1985 is Rs. 5 only

  1. Dear sir,
    Please advise what is rule for stamp duty in 1998?
    Was it calculate on carpet + 20%
    Or on built-up/super built-up area?
    My full details as follows:
    I bought my flat in 1998 and paid stamp duty and registration charges according the rules.
    But I have not received agreement from office.
    Now I requested for same. Registration Authority asking me to pay more amount for stamp duty + 4 times penalty.
    Please advise what is rule for stamp duty in 1998?
    Is it on carpet + 20%
    Or on built-up/super built-up?
    In 2008 one letter I had been sent by authority where they asked me to pay Rs.3012 as duty + 3012 is penalty.
    But now they are not tellin g reason for increase duty so much Rs.60000/-.
    Please advise.

  2. Dear sir,
    Our society is going to submit documents for deemed convenience. I do not have registered documents of my flat which i applied for same to registration authority. But registration authority is charging me high stamp duty and penalty even I had paid already.
    What my society can take action for getting late to submit documents?

  3. Hi,Agreement dt.2.1.1985 on Rs10 stamp paper.Subject is exchange of properties for rent of Rs1000-400=600 difference payable monthly to other. Period not mentioned. Difference paid till 7years only. Is stamp duty enough. Reply

  4. Hi, i had purchased a flat from investor in 1997 and i did my registration and stamp duty on time. On share certificate i am the first owner but on registration it is mentioned that i that flat is resale to me. it is been more than 20 years now when i got to know that the investor did not pay his stamp duty. do i have to pay his stamp duty. If yes can you suggest me how much it would be since my stamp duty cost was 43000/- . Also let me know if there is any scheme going on (Amnesty scheme), which can benefit me from this.

  5. Dear sir,
    I want to purchase second hand flat but that flat owner purchase that flat on 31-01-1978 he was purchase second hand flat he was made transfer Agreement on Rs.5/- stamp paper only and he was not register the it is valid document? According to owner there was no need for registration & stamp duty paid before 10-12-1985. it was valid document on Rs.5/- stamp paper
    You are requested to please clearfiy the matter if it ok please give me notification number or any Goverment GR.

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