stamp duty: There is no stamp duty waiver on' resale' transactions of flats.

We have strong misconceptions about some legal matters, e.g., 7/12 extract determines the ownership right; if the will is done, it means that death is near; if the property is to be named, then only the name is changed on the tax receipt.

There is a situation where, no matter how many times I write on these topics, it will be reduced. Now one more topic has been added to this for the past 2-3 years, namely, " Stamp duty is waived while buying a resale flat!".

As it is human nature to consider something nutritious if it is available cheaply or for free, people also immediately believe such rumours and social media posts contribute to it.

Stamp duty - stamp duty waiver, the reason behind this rumour is that Hon. (Mis)interpretation of Bombay High Court Judgement by edia." Let us briefly explain what the result was and its background.

Stamp duty paid earlier on resale of a place or places existing before the stamp act came into existence—whether stamp duty is paid correctly or not? Why not fill it?

And so, whether or how can the new transaction be registered? Such questions were raised in Lajwanti Godhwani and others vs. Shyam Godhwani and others (Suit No. 3394/2008) in Motion Application No. In 1918/2018, Hon. appeared before Gautam Patel.

While buying a flat in court auction, that flat was bought by paying stamp duty of Rs 10 earlier, but in 2018, when it was sold in auction, due to less Stamp duty paid in the original purchase document, the person who buys it in auction should also pay stamp duty on such an old document, and till then An objection was taken from the Sub-Registrar's office that the deed should not be registered, and the matter reached the High Court.

Ironically, even the Public Prosecutor and the officials from the Sub-Registrar Office who were present could not adequately answer the legal provisions in this matter.

Then take it. Patel clearly explained his result. Suppose the original owner, 'A', sold a flat to 'B' in 1970. At that time, stamp duty was not paid. "B" has now sold that flat to "C" in the year 2018.

Now the sub-registrar has the authority to check whether the correct stamp duty has been paid on the purchase document of 2018 as per current rules, but with the same authority, the sub-registrar does not have the authority to check whether the stamp duty paid in 1970 is correct or not. take Patel mentioned that the officials concerned should keep in mind that the bill before them is from the year 2018, so it is not within their jurisdiction to see whether the correct stamp duty has been paid in the year 1970.

He further pointed out that if the objection of the sub-registrar officers were to be accepted, it would create a situation of unprecedented confusion, and "A" in this instance would be treated as the owner for life and not intended to be so.

This Court further observed that it is incomprehensible how an officer can ride on the provisions of existing law and arrive at a completed transaction in history. The income in this case was from Mumbai, so the price of the place and stamp duty should be imagined there.

By now, you must have realised what the result was and how the news went "viral." According to the law, transactions like the sale and purchase of land worth more than 100 rupees, rights release letters, and reward letters have to be done only by registered deed and by paying the appropriate Stamp duty . The only exception is the will. Registration of a will is not mandatory by law, and a will does not attract any stamp duty.

The benefit of this result is also:

Stamp duty : Stamp duty is an important source of income for the government, so people should also note that, as per the above rumours, Stamp duty waiver is an impossible thing. A few months ago, during the Corona period, the government announced a significant exemption from Stamp duty that was under its purview. Despite the announcement, there was no exemption.

Stamp duty is not waived for transactions involving flats. No Stamp duty waiver on' resale' transactions of flats We have strong misconceptions about some legal matters, e.g., 7/12 U.S.

However, the advantage of this judgement is that now the premises that are to be resold, i.e., resale, cannot be objected to as to whether the correct stamp has been filled at the time of the original deed or not, and therefore the registration of such a deed cannot be stopped for this reason only.

Many times in the past, there have been cases of blocking new transactions, imposing fines on them, and registering them only after paying less stamp duty. Such incidents can be stopped now.

Of course, interpretation of a court's judgement is always a difficult task, and the language of the present judgement is somewhat complicated, making interpretation difficult. Therefore, bringing clarity to the law itself can save many future troubles.

Finally, I would like to mention that social media is not bad. But we blindly rely on news about it, especially legal and health news. Do not smell; "take it with a pinch of salt.".

Adv. Rohit Erande

Translation by - Postbox Team

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