Documentation and registration are critical aspects in the process of buying residential plots in Coimbatore. If you want to start building your dream home soon, you must take the time for the stamp duty and registration procedure, as the sale of the residential plot cannot automatically determine its ownership. Legal papers and other necessary documents will indicate the clear title, and your legal acquisition of the plot can only be completed upon fulfilling the registration of documents and paying for stamp duty.
Understanding stamp duty:
Stamp duty is a form of property tax to be paid in full amount within a stipulated time when you buy residential plots in Coimbatore. Think of it as if it were income tax or sales tax, which the government must collect. As the buyer, you will need to for it on the sale agreement as stated in Section 3 of the Bombay Stamp Act, 1958. Stamp duty should serve as the legal proof of the property deal. Hence, it is considered valid evidence in case there are problems that need to go to court. By paying stamp duty, you can be sure that the plot is legally registered in your name.
When stamp duty is paid, it is recorded automatically in the government’s property purchase transactions. Non-payment will eliminate the deal’s value. The right time to pay for it is before or on the day of the execution of your sale agreement. You may pay for stamp duty on the next working of the sale agreement’s execution, too. Execution pertains to the signatures of all the persons associated with the agreement’s legality. Any delays will require you to pay a two percent penalty each month, subject to a maximum rate of 200 percent.
Paying for stamp duty:
Stamp duty is determined based on the agreement value or market value of the residential plots in Coimbatore, depending on which is higher. Moreover, it is payable only on the registration document’s contents instead of the transaction value. Stamp duty authorities use the Stamp Duty Ready Reckoner as reference when assessing the market value and it is issued every January 1 by the government. Stamp duty in Coimbatore will depend on the state.
To pay for stamp duty, you need to provide non-judicial stamp papers or consider e-stamping, a digital payment system that is highly secure and tamper-proof. Another option is by franking, in which agreement details must be printed on blank paper and must be submitted with your stamp duty amount to a bank, which is authorized to carry out the franking transaction.