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Mumbai Stamp Duty Exemption for Investors in Bombay Stamp Act

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Mumbai Stamp Duty Exemption for Investors in Bombay Stamp Act

Last updated: December 2 2015
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  • Mumbai Stamp Duty Exemption for Investors in Bombay Stamp Act

    2) Stamp
    duty to investor

    As per article 5(g-a)(ii) of schedule 1 of the Bombay stamp duty act.1958.
    If relating to the purchase of one or more units in any scheme or project by an person, from a developer, who subsequently sells the unit, the duty chargeable for each unit under this clause shall be adjusted against the duty chargeable under article 25(conveyance) after keeping the balance of one hundred rupees, if such transfer or assignment is made within a period of three years from the date of the agreement. If on adjustment, no duty is required to paid, then the minimum duty for the conveyance shall be rupees one hundred.
    Explanation : for the purpose of this clause, the unit shall include a flat, apartment, block or any other unit by whatever name called, as approved by the competent authority in the building plan.










    According to 5g-ii rule for investor, the investor can transfer or sell the property by just paying difference in the property value now and then(when he did registration and paid the stamp duty of that value with the builder)


    please let me will it work, in the same way.
  • #2

    #2

    Re : Mumbai Stamp Duty Exemption for Investors in Bombay Stamp Act

    stamp duty exemption for investors in bombay stamp act Reply to Thread

    Originally posted by swetcha View Post
    2) Stamp
    duty to investor

    As per article 5(g-a)(ii) of schedule 1 of the Bombay stamp duty act.1958.
    If relating to the purchase of one or more units in any scheme or project by an person, from a developer, who subsequently sells the unit, the duty chargeable for each unit under this clause shall be adjusted against the duty chargeable under article 25(conveyance) after keeping the balance of one hundred rupees, if such transfer or assignment is made within a period of three years from the date of the agreement. If on adjustment, no duty is required to paid, then the minimum duty for the conveyance shall be rupees one hundred.
    Explanation : for the purpose of this clause, the unit shall include a flat, apartment, block or any other unit by whatever name called, as approved by the competent authority in the building plan.










    According to 5g-ii rule for investor, the investor can transfer or sell the property by just paying difference in the property value now and then(when he did registration and paid the stamp duty of that value with the builder)


    please let me will it work, in the same way.
    In realty most of the time agreement never happens- it is the mutual understanding between the builder and investor to save stamp duty and registration. Most of the time the investors are relatives of the builder, they do the funding and book a flat at lower rates. The same flat is kept on hold and sold when prices appreciate. The agreement is done between buyer and builder.

    In case of Bombay Stamp Act where investor goes in agreement with the builder
    under this sub-clause 5(g-a)(ii) benefits are given to investors who sell their units within a period of 3 years. In such a case, for the sale by the 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.

    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.

    Comment

    • #3

      #3

      Re : Mumbai Stamp Duty Exemption for Investors in Bombay Stamp Act

      If the investor is relative of developer or not a relative, i don't have idea, but he did the registration by paying the stamp duty of that time property valvue. but if he pays the stamp duty during the registration, can he transfer that amount to the subsequent transaction i.e selling to the other buyer. please guide me. Because my builder and seller are asking me to pay only difference amount+1000 for the stamp duty remaining amount of the stamp duty which they paid during their first registration should pay them. Please guide me in this issue.
      Originally posted by NIKETAN View Post
      In realty most of the time agreement never happens- it is the mutual understanding between the builder and investor to save stamp duty and registration. Most of the time the investors are relatives of the builder, they do the funding and book a flat at lower rates. The same flat is kept on hold and sold when prices appreciate. The agreement is done between buyer and builder.

      In case of Bombay Stamp Act where investor goes in agreement with the builder
      under this sub-clause 5(g-a)(ii) benefits are given to investors who sell their units within a period of 3 years. In such a case, for the sale by the 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.

      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.

      Last edited September 7 2011, 11:12 AM.

      Comment

      • #4

        #4

        Re : Mumbai Stamp Duty Exemption for Investors in Bombay Stamp Act

        Procedure for rebate on Stamp duty

        Hello folks

        For property which is sold within 1 yr of registration, how much is the rebate on the Stamp duty and Registration payable by the buyer ?

        Any idea what is the process to be followed in such a case while registering the property ?

        Thanks

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