Stamp duty and its Refund
Buying a house is one of the biggest financial decisions that you will make in your life. It is an overwhelming experience, both financially and emotionally. While buying a house, we need to identify the property, make down payment, apply for loan, sign the sale agreement, etc. One of the important step & the final step while buying a house is the possession and registration of your property. After the possession of the property is being transferred to you, it is your responsibility to get it registered in your name.
What is stamp duty?
It is a tax, similar to income tax, collected by the government. Stamp duty is payable under Section 3 of the Indian Stamp Act, 1899. Stamp Duty must be paid in full and on time. If there is a delay in payment of stamp duty, it attracts penalty. A stamp duty being a paid instrument / document is considered a proper and legal instrument / document and has evidentiary value and is admitted as evidence in courts. Document not properly stamped, is not admitted as evidence by the court.
What is the process of refund of stamp duty?
Refund of Stamp Duty has to be claimed within 6 months (limitation period). Stamp Duty is refunded after deducting 10% of the total amount of Duty Paid, but in case the refund of payment made through e-payment, the deduction is Rs. 1000/- per challan.
Stamp Duty Refund is a web application made available to Citizen by Stamps and Registration Department of Maharashtra State.
- Citizen can fill refund application online.
- Citizen can download acknowledgement, it gives the details which citizen has entered in the application.
- Citizen has to submit physical documents in the Collector of Stamps office.
- Collector of Stamps will process this case.
- Citizen can view status online
The party desiring to have refund of taxation (Stamp Duty) must apply to the concerned District Collector/Sub-Collector/ Deputy Collector R.D.O/Tehsildar under section 2(9) of Indian Stamp Act. (I. S. Act) through the Sub-Registrar dully mentioning the explanations for seeking refund beside challan and receipt in original issued by the selected Bank branch.
The Sub-Registrars on receipt of such application can verify the scroll P.C.R etc., once satisfying that the challan and receipt are genuine and haven’t been utilized can issue the certificate to it. Based on the certificate issued by the Sub Registrar (S.R.) the amount is refunded after deducting 10% of the entire amount of Stamp.
On what ground one can claim stamp duty refund?
- Paid excess stamp duty or penalty
- Un-used stamp papers or spoiled stamp papers
- Cancellation of a document where judicial stamp paper is required but non-judicial used or vice-a-versa
- As per court order stamp duty refund
- If the stamp duty has been deducted two times on the same document.
Paid online stamp duty to different departments or different heads
Cancellation of the agreement with the builder or vendor
List of Document to be submitted for getting Refund of Stamp Duty
- Original instrument with one Xerox copy
- Original Receipt of purchased stamps
Affidavit in prescribed format
Certificate of Collector of stamps for genuine of stamps
Reconciliation Certificate of Treasury or Success Report
If stamps are purchased on behalf of the any party, then No objection Certificate of the Stamp Purchaser(s). (Optional)
If there are more purchasers in the Instrument and one purchaser applied for the refund. No Objection Certificate of the remaining purchasers. (Optional)
True copy of sale of stamps register
- Certificate of sale of stamp
Power of Attorney, if any person other than purchaser of stamp applied for the refund. (Optional)
True copy of deposited challan in Treasury