Land, house, shop, There is a big burden of stamp duty in shopping of flats etc. Lakhs of rupees have to be paid to the buyer as stamp duty. Let us tell you that stamp duty is applied to the purchase, sale, or transfer of property. This tax is recovered by the state government. Stamp duty is recovered at the market value or transaction price (whichever is higher) of the property. Now the question is whether the burden of stamp duty can be reduced in a legal manner. The answer is absolutely! We are telling you many ways, through which you can reduce stamp duty expenses in the property registry. Let’s know those methods.
Give a joint ownership to wife
If you want to save stamp duty in the purchase of property, then make a joint ownership to your wife. Apart from wife, you can save tax by making joint ownership to mother or any other woman. Many Indian states charge low stamp duty for women buyers. For example, in Delhi, women pay only four percent stamp duty compared to six percent for men. States like Maharashtra and Haryana also have similar concessions.
Price the property correctly
Sometimes the property costs less than the market value, but the deal is on a higher amount. Compare the government guideline value and market value and get the correct evaluation. By doing this you will be able to save in stamp duty. However, you have to give proof for this. The buyer will have to present the evidence that the market price of the property is lower than the circle rate. After this, if the collector feels less than the market price circle rate, then the stamp duty will be reduced.
Claim tax exemption
In India, under Section 80C of the Income Tax Act, individuals and Hindu undivided families (HUF) can claim a deduction of up to Rs 1.5 lakh for expenses related to the purchase of residential property, including stamp duty and registration fee. This deduction is applied only in the financial year when real payment is made. It is important to note that this benefit is only available for new residential properties, not for old or commercial property.
Buy affordable property
By purchasing affordable properties, you can make great savings in stamp duty. Many state governments offer discounts on cheap houses. For example, Delhi forgives the entire stamp duty to those who buy a flat worth up to Rs 45 lakh under affordable housing schemes. Similarly, Maharashtra Mumbai provides complete exemption on stamp duty for homes worth more than Rs 30 lakh in homes and other state places in Mumbai metropolitan region.
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