Part 2
v Market Value
Government has fixed a market value for properties. Stamp duty has to be paid on the basis of market value or the agreement value whichever is higher. Market value of property is revised every year by the Government. Stamp duty is payable on the built up area of the flat. If the carpet area of the flat is mentioned in the agreement, 20% is added to arrive at the built up area. If the area is mentioned in super built up area, 20% is to be deducted to arrive at built up area. Government fixes the market value for one sq. ft. (built up area). That rate multiplied by the area of the flat will give the market value of the flat. Based on the market value of the flat, stamp duty can be calculated.
To arrive at the market value on old buildings depreciation is available as under:
If the age of building is
Upto 5 years Nil
6 years to 10 years 10%
11 years to 20 years 20%
21 years to 30 years 30%
31 years to 40 years 45%
41 years to 60 years 60%
61 years and above 75%
v Current Rate Of Stamp Duty (w.e.f. 1-5-2003)
(i) Residential flats
Market Value of flat Stamp duty
Upto Rs. 1 lakh Nil
Rs. 1 lakh – Rs. 2.5 lakh Rs. 0.5% of value
Rs. 2.5 lakh – Rs. 5 lakh Rs.1250/- + 3% of value above Rs. 2.5 lakh
Market Value of flat Stamp duty
Rs. 5 lakh - Rs.15 lakh Rs.8,750/- + 6% of value above Rs. 5 lakh
Above Rs. 15 lakh Rs.68,750/- + 8% of value above Rs. 15 lakh
(ii) Commercial Premises 10% of value at flat rate
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