The Bombay Stamp Act 1958 has been amended on several occasions. This article is restricted to conveyances, licenses and agreements connected to the same and relates to the positions as of date.
An agreement of sale in respect of immovable properties is to be stamped as a conveyance, irrespective of the fact that a sale is not complete. As per the provisions of the Contract Act, subject to various exceptions, an agreement is reached between two adults, competent to contract, if there is an offer, the offer is accepted, and the same is linked or bounded by a valid consideration. Contingent contracts are ones that come into effect on the happening of a certain contingency. The Bombay Stamp Act however expects to stamp all agreements. If, for example, the title is found, after execution of the agreement, to be defective, though the Vendor insists it is clear, stamp duty paid may not be recoverable back from the department. Areas have been marked out by the authorities, as having a certain value. The Sub-Registrar does not differentiate between flats having Italian Marble flooring, with the state of the art amenities, as against flats which are not so well constructed, face a shown etc. The only option to the person requiring to stamp the document on the actual market value is to move the Joint District Registrar and Collector of Stamps for adjudication. In any event duty is to be paid on the agreement value or the value prescribed whichever is higher. Certain benefits are given to Purchasers of residential units purchased from builders (or from Purchasers of such units), to units is a housing society in favor of a member or incoming member and to units in a condominium of apartment holders.
Stamp is payable on the market value (meaning agreed consideration or the price which such property would have fetched if sold in the open market). A general value is available at the offices of the Sub-Registrar where registration takes place. Values can also be checked at the office of the Joint District Registrar and Collector of Stamps at Bibwewadi.
Stamp duty payable for flats where market value is less than Rs.100 000.00 or is Nil. If the value is in excess of Rs.100 000.00 but does not exceed Rs.250 000.00 it is 0.5% of the value. If it exceeds Rs.250 000.00 but does not exceed Rs.500 000.00 the stamp duty is Rs.1250.00 + 3% of the value in excess of Rs.250 000.00 and if it exceeds Rs.500 000.00 then the stamp duty payable is Rs.8 750.00 + 5% of the value in excess of Rs.500 000.00. No such benefits are however, given to non residential premises, who are charged with stamp 0.5% flat on the market value.
An area outside the Pune Cantonment Board/Municipal Corporation of the City of Pune (i.e. in the Gram Panchayat) is deemed to be rural. Stamp duty for residential immovable properties is such areas is 2%, viz. 1% stamp and 1% Gram Panchayat tax payable by means of stamp duty. If it is non residential, the stamp payable is 4% (3% + 1% as aforesaid).
Benefits are now given to investors who sell their units within a period of 3 years. In such a case, for the sale by he investor, the amount of stamp duty paid by the investor is set off against the stamp duty payable by the subsequent Purchaser, though the minimum payable by much Purchaser shall be Rs.1 000.00. Surprisingly however this benefit is not available to any investor who does not deal with a Developer. Such benefits are available to non-residential properties also
Stamp duty payable for properties given on leave and license for residential premises are based on the deposit and the license fee payable, so long as the license does not exceed 60 months. The system of calculation is as under:
If the average license fee + the deposit (including advance license fee) does not exceed Rs.250 000.00, the stamp duty payable is Rs.500.00 as per term of 12 months or part thereof.
If the average license fee + deposit (including advance license fee) exceeds Rs.250 000.00 but does not exceed Rs.500 000.00, then the stamp duty payable is Rs.1 000.00 per term of 12 months or part / s thereof.
If the average license fee + deposit (including advance license fee) exceeds Rs.500 000.00, the stamp duty payable per term of 12 months or part thereof is Rs.2 000.00
For non residential premises, the stamp duty is to be doubled.
If however the period of license (including by means of a renewal clause) exceeds 60 months in all, stamp duty is payable as under.
If the license is in excess of 5 years but not in excess of 10 years stamp duty is payable as on a conveyance on 25% of the market value of the property.
If the license is in excess of 10 years but not exceeding 29 years, stamp duty is payable as on a conveyance on 50% of he market value.
If the license is in excess of 29 years, then the stamp duty payable is as on a conveyance as 90% of the market value of the property.