Punjab is one of the most famous states in the northern part of India. Moreover, it is one of the most vibrant places in the country. If you are looking to purchase a property in Punjab, there are some state-specific details that you must be aware of. Along with the property cost, other expenses like registration fee and stamp duty also need to be taken care of. After you have paid the cost of the property to the seller, it is necessary to register your property and pay the stamp duty. Now, do you know what stamp duty is and why is it important? Scroll down to find out.
Stamp duty is a tax levied by the state government on the transactions involving transfer of properties. It is levied on all properties like under construction or newly completed property, agricultural or non-agricultural land, commercial units, freehold or leasehold land or residential house. Stamp duty payment validates your ownership and legalizes your property documents.
Stamp duty in Punjab is calculated on the market value of your property. Officials also use the ready reckoner to determine the value of the property. A ready reckoner is a standard value of a particular property analyzed and managed by the Punjab government. This serves as the limit below which property transactions are not allowed to be conducted. It is essentially the minimum amount of the property notified by the government. To determine the property value for stamp duty, the higher of the two values is considered. Along with the property value, there are many other factors like location of the property, gender of the owner, usage of the property, type of property etc. that affect the amount of stamp duty applicable on the property. Read Also: Bhulekh: A Complete Guide, Definition, Benefits, & Change Name Online
Stamp duty in Punjab is as follows:
Registration Charges
