No Stamp Duty On Old Agreements Hc

Until July 4, 1980, stamp duty was due on the basis of contractual value. However, due to the widespread use of dirty money in real estate transactions, the contractual value was used at a low value, which deprived the government of its legitimate taxes. To overcome this threat, the Maharashtra government introduced the concept of the market value of stamp duty on 4 July 1980 in order to increase its revenues and fill the revenue stream. On March 1, 1990, the Government of Maharashtra introduced the « Ready Reckoner » to help buyers determine the cost of stamp duty when purchasing a property if the agreed value was less than the stamp duty valuation. In one case on the person bought a property by payment only Rs. 10/- towards stamp duty. The property in question was purchased by another person in The Auction and paid the stamp duty required on the purchase contract at current stamp rates. But Sub Registrar Office refused to register the new sales contract, saying that Rs. 10/- only paid on the old sales contract. That is why Hon`ble approached the biased High Court. Then, in December 1985, an amendment to the Maharashtra Stamp Act stipulated that stamp duty must be paid at the billing rate reported annually by the government. Subsequently, the government even began retroactively levying stamp taxes on the resale of old real estate for which nominal tax had been paid decades ago. This apartment was auctioned in 2018 for 38 kronor.

When the buyer, Vijay Jindal, went to the document registrar, the stamp collector refused to register the new sales contract in accordance with the auction and demanded stamp duty on the chain of agreements on the grounds that it was not properly stamped. Stamp duty alone was approximately two kronor based on current billing rates. Since the property was purchased through a bankruptcy court auction, the buyer went to Bombay High Court to order the sellers to assume responsibility for the old stamp duty, as one of the sellers refused to bear the costs. The property in question was sold in 1979, when the stamp duty paid was only 10 billion euros. In 1985, stamp duty had to be paid because of a change in the Maharashtra Stamp Act to the billing rate reported annually by the government. After the sale of real estate, the government began introducing stamp duty with retroactive effect. In 2018, the property was auctioned for 38 estates, but the authorities refused to register the new sales contract until stamp duty on the previous agreement was paid and the penalty was paid because it was not registered in 1979 when it changed hands. Vijay Jindal, who had bought the property through an auction, then turned to the HC for management. Niranjan Hiranandani, National President, NAREDCO said the verdict offers great relief for potential sellers and buyers of old real estate in Mumbai. « From a home buyer`s perspective, stamp duty is an additional payment when buying a home. And in Bombay, this duty has recently been revised upwards.

The verdict is therefore welcome and will benefit buyers of resale homes, » he said. Years ago, when house prices were not as high and stamp duty was not the main source of income for the government, there were no clear guidelines on stamp duty to be paid when selling apartments in Maharashtra. However, as house prices rose, governments realized that stamp duty on the sale/transfer of housing could generate significant revenue for the public treasury. Thus, the government must pay the stamp duty rate for the transfer of real estate. A lady named Lajwanti Randhawa had inherited a noble 3300 sqm apartment in the Tahnee Heights Cooperative Housing Society on The Napean Sea Road in Mumbai from her father along with other legal heirs.