While the rate for stamp duty varies from state to state, the general underlying principle behind stamp duty remains the same. Stamp duty is computed per the property’s value and is usually some percentage of the total payable amount. In this context, stamp duty is the government levy paid at the time of the property transactions that makes the physical transfer of property as well as the sales deed certificate legally binding. To make such a property transaction legal, the buyer must pay stamp duty as proof of acquiring the property. Mere physical property transfer is not considered valid in the eyes of the law. Stamp duty is something everyone should be aware of, especially if you are purchasing a new home or selling an asset. It is a legally backed instrument that can be used as evidence in a court of law in the event of a dispute. As a result, stamp duty functions almost like proof for deal closures and fulfillment. The Indian Stamp Act requires stamp duty of 1899 as a means of recording and tracking transactions. While the buyer usually pays the stamp duty, there are cases when the buyer and seller mutually decide to split the stamp duty. Stamp duty works as a legal tax that must be paid in full during the completion of any transaction. The reduced stamp duty shall apply to all loan agreements executed by borrowers in favour of banks, financial institutions, and financial development corporations. The Haryana State Government has decided to cut stamp duty on loan agreements to just ₹100.
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