Stamp Duty in Uttarakhand

Stamp duty and Sale deed constitute the core of a real estate transaction. A Sale Deed is an instrument through which the ownership of immovable property is transferred while the stamp duty is the tax that is payable on the value of that transaction. The stamp duty is fixed by the government and is different for every state. The payment of stamp duty provides a legal basis for the sale deed. Uttarakhand, being a fairly new state, does not have a Stamp Act of its own, and thus, the provisions of the Indian Stamp Act, 1899 (Act) apply here. Article 23 of Schedule I-A of the Act pertains to the sale of immovable property.

Being a burgeoning State, Uttarakhand has witnessed exponential growth in the real estate sector. And the government has also time and again made several changes in the land laws and the stamp duty payable, so as to keep Uttarakhand as a lucrative investment option. Initially, the stamp duty payable in Uttarakhand was 7%. But vide notification no. 276/XXVII (9)/2010/Stamp-61/2008 dated April 6th, 2010, the stamp duty payable on the transfer of immovable property was reduced to 6%. However, the duty was reduced again to 5% vide notification no. 297/XXVII (9)/2011/Stamp-61/2009 dated May 31, 2011, issued by the Department of Finance, State of Uttarakhand and is currently applicable.

The State also provides a 25% exemption in stamp duty payable by female purchasers. Initially, this exemption was available up to Rs. 10 lakhs but vide notification No. 719/ XXVII (9)/2013/stamp-53/2009 Dated 26 July 2013, the value of transaction limit was increased to Rs. 25 lakhs. Thus, when a female buyer purchases an immovable property in Uttarakhand, the stamp duty payable by her is 3.75% of the market value up to Rs. 25 lakhs, and above that the stamp duty is payable at 5%. The State also provides an exemption of 25% on the stamp duty payable by Defence personnel in respect of transfer of immovable property for a value of Rs. 25 lakhs.

While calculating the stamp duty there are several factors that have to be accounted for. They include;

1. The nature of the property i.e., residential, agriculture, or commercial.
2. The width of the road adjacent to the property.
3. Distance of the property from the Main road.
4. Nature of the construction i.e., apartment in a multi-storied building, individual house, temporary construction, etc.

The width of the road connected to the property accounts for additional stamp duty.

Road width 5m and less: NIL

Road width 5m to 12m: 5%

Road width 12m to 15m: 10%

Road width 15m to 18m: 15%

Road width above 18m: 15%

Calculation of stamp duty- The stamp duty is calculated according to the slabs given in the circle rate book. It is different for every state. Here is an example of stamp duty calculation for a residential plot in Dehradun. The plot is situated at Race Course. The circle rate for Race Course is Rs. 24000 per sq. meter. The road adjacent to the plot is 13 meters.

Area of the land- 150 sq. meters.

Circle Rate- Rs. 24000 per sq. meter

Road width- 13 meters- 10%

So, 10% of Rs. 24000 = 2400

Thus, the revised rate is 24000 + 2400= Rs. 26400 per sq. meter.

Market value of the property as per circle rate: 26400 * 150= Rs. 39,60,000

Stamp Duty

In case of a male purchaser- 5% of 39,60,000= Rs. 1,98,000

In case of female purchaser- 3.75% of 25,00,000 + 5% of 14,60,000

=93,750 + 73,000

=Rs. 1,66,750

Also, while calculating stamp duty for an old construction the rate of depreciation has to be taken into account. The registration charges are fixed at 2% but the cap placed by the State government on the maximum amount is Rs. 25,000.

Thus, the payment of the applicable charges ensures that the transaction is duly registered in the government records. It is also important to deposit the requisite charges in a stipulated time frame, failing which a penalty can be levied by the State government of Uttarakhand.