Stamp Duty

1. Is an agreement for sale of a flat / shop / office required to be stamped and registered?

Yes, an agreement for sale of a flat / shop / office is required to be stamped and registered as per applicable law.

2. In whose name should the stamp paper be purchased? Can the client exercise the document on a stamp paper purchased by an advocate?

As per Sec.34 of the Bombay Stamp Act, the stamp papers should be in the name of one of the parties who have signed the documents. If the stamp paper has been purchased in the name of an Advocate, C.A., etc., then such instrument shall be treated as an instrument not duly stamped and shall be inadmissible in evidence.

3. What is the procedure for registration of an instrument?

Once the adequate stamp duty is affixed on an instrument, it has to be dated & signed by the concerned parties and attested wherever needed by the witnesses. Thereafter, it can be furnished for registration after payment of the registration fee. All parties signing the instrument are required to attend the office of the concerned sub-registrar of assurances either in person or through their constituted attorney to admit the execution of the instrument. A copy of the PAN Card is essential for registration. If the signatory to the instrument is different than the person present for registration, the power of attorney in such a case will require registration. After lodging an instrument it is registered and the seal of the Sub-Registrar is affixed on the instrument and thereafter the original instrument is returned back to the parties.

4. Is there a time frame within which the stamp document must be executed?

A stamped document should be executed within six months from the date of stamping.

5. Is it possible to get a refund of stamp duty already paid on an instrument?

Yes. If the stamp duty is paid on an instrument but the instrument is not signed by any party, then an application must to be made to the concerned authorities for refund of stamp duty within six months from the date of stamping. On receipt of such an application, the concerned authorities are empowered to refund the value of stamp duty after deducting such amounts as may be prescribed.

6. In case of a resale of the flat who has to pay the stamp duty - the purchaser or the seller?

The parties can themselves decide among themselves who shall pay the stamp duty. If nothing is mentioned in the agreement, then as per Section30 of the Bombay Stamp Act, if the transaction relates to resale of a flat, the stamp duty has to be paid by the purchaser.

7. What is meant by the 'market value' of the property and is stamp duty payable on the market value of the property or on consideration as stated in the agreement?

'Market value' means the price at which a property could be bought in the open market on the date of execution of such an instrument. The stamp duty is payable on the agreement value of the property or the market value, whichever is higher.

8. Which are the instruments that attract payment of stamp duty?

The instruments that attract Stamp Duty on market value of the property are:
• Agreement to Sell
• Conveyance Deed
• Exchange of property
• Gift Deed
• Partition Deed
• Power of Attorney settlement and Deed
• Transfer of lease

9. What are the stamp duty and registration charges in Gujarat?

Stamp duty on any property bought in Gujarat is 4.9% of total consideration of the property. Registration expense will be 1% of total consideration of the property. Therefore, total of stamp duty and registration will be 5.9% of total consideration of property. However, registration charge of 1% will not be levied if the property is purchased by a female.

10. How is stamp duty paid in Gujarat?

Various banks and financial institutions have been authorised with a stamping / franking facility at a few of their branches. The stamp duty can via a pay order or a demand draft drawn in favour of the concerned bank or financial institution. The pay order or demand draft must be accompanied with a covering letter from the issuing bank that the same is for payment of stamp duty. A receipt is issued by the concerned bank or financial institution for the stamp duty amount.

11. What is the difference between SBA, BUA and Carpet area?

• Super built-up area: The total area of the unit + area under common amenities (equally distributed amongst all the units) + lift area (if any, equally distributed among all the units) + Parking area, etc.
• Built up area: The carpet area + area covered by thickness of walls+ balconies, etc. As a general rule built up area is around 8% to 10% more than carpet area.
• Carpet area: The total area of the unit from wall to wall. It does not include the thickness of the wall in the unit. Carpet area is the area calculated from wall to wall inside the house, this would include steps, if any, inside the house.


1. Who can apply for a housing loan?

Anyone, including non-resident Indians, with a steady source of income is eligible to apply for a housing loan.

2. How much can one borrow?

Loans are generally disbursed up to a maximum of 85% of the cost of the property. In most cases, a housing loan is sanctioned depending upon the repayment capacity and income of the borrower. The borrower's spouse's income also can be included, if he / she want to increase the amount of the loan. The maximum loan that can be sanctioned varies from one housing finance company to the other and ranges from Rs.10 Lakhs to Rs.1 Crore.

3. Do institutions accept joint loan applications?

Yes they do.

4. What are the mandatory documents needed to apply for a housing loan?

For salaried individuals:
• Latest salary slip (proof of income for salaried individuals)
• Two photographs
• Proof of age
• Proof of Identity
• Proof of residence
• Bank statements for the last six months
   For self-employed:
• Certified copies of their balance sheet, profit and loss account (P&A) statements
• Tax chalans / tax returns of the last three years
   For partnership /private limited companies:

The articles of association or the partnership deed and details about the firm are needed.

5. Apart from housing finance companies, which other sources offer housing loans?

Even banks and insurance companies offer housing loans. Loans can also be availed against the borrower's provident fund, fixed deposits, post office savings, against shares and debentures of listed companies and government bonds and securities.

6. What is a home extension loan?

A home extension loan is a loan which helps to meet the expenses of alterations like extensions / expansion or modification of the house. A home extension loan can be obtained after requisite approvals from the concerned municipal corporation.