There is a huge burden of stamp duty in the purchase of land, house, shop, flat etc. The buyer has to pay lakhs of rupees as stamp duty. Let us tell you that stamp duty is applicable on the purchase, sale, or transfer of property.
This tax is collected by the state government. Stamp duty is collected on the market value of the property or the transaction value (whichever is higher). Now the question is whether the burden of stamp duty can be reduced legally. The answer is absolutely! We are telling you many ways through which you can reduce the stamp duty expenses in the registration of property. Let us know those ways.
Give joint ownership to wife
If you want to save stamp duty on property purchase, make your wife a joint owner. Apart from your wife, you can also save tax by making your mother or any other woman a joint owner. Many Indian states charge less stamp duty for women buyers. For example, in Delhi, women pay only four percent stamp duty compared to six percent for men. Similar concessions exist in states like Maharashtra and Haryana.
Price the property correctly
Sometimes the price of the property is less than the market value, but the deal is done for a higher amount. Get the correct valuation done by comparing the government guideline value and the market value. By doing this you will be able to save on stamp duty. However, for this you will have to provide proof. The buyer will have to submit proof that the market value of the property is less than the circle rate. After this, if the collector finds the market value to be less than the 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 (HUFs) can claim a deduction of up to Rs 1.5 lakh for expenses related to the purchase of a residential property, including stamp duty and registration charges. This deduction is applicable only in the financial year when the actual payment is made. It is important to note that this benefit is available only for new residential properties and not for old or commercial properties.
Buy Affordable Property
Buying an affordable property can help you save a lot on stamp duty. Many state governments offer rebates on affordable homes. For example, Delhi offers full stamp duty waiver to first-time homebuyers buying flats valued up to Rs 45 lakh under affordable housing schemes. Similarly, Maharashtra offers full exemption on stamp duty for homes priced above Rs 35 lakh in the Mumbai Metropolitan Region and above Rs 30 lakh in other state locations.
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