Stamp duty rates differ according to the nature of the deed or license. In practice, the calculation of stamp duty for transfer (sale/trust) and gift related to immovable property is frequently encountered in land transactions.

Stamp Duty on Sale Deeds:

Calculated as follows:

3% on the first Rs. 100,000 of the land's sale value.
4% on the remaining amount of the land's sale value.

Example Calculation:

Land Value: Rs. 1,000,000
Step 1: Calculate stamp duty on the first Rs. 100,000:
- Rs. 100,000 × 3% = Rs. 3,000
Step 2: Calculate the remaining amount:
- Rs. 1,000,000 – Rs. 100,000 = Rs. 900,000
Step 3: Calculate stamp duty on the remaining amount:
- Rs. 900,000 × 4% = Rs. 36,000
Step 4: Calculate the Total Stamp Duty Payable:
- Rs. 3,000 + Rs. 36,000 = Rs. 39,000

Recommendation:

Use the Lexelon Stamp Duty Calculator to double-check your figures.

Stamp Duty for Gift Deeds:

Calculated using a different structure:

3% on the first Rs. 50,000 of the land's assessed value.
2% on the remaining amount of the land's assessed value.

Example Calculation:

Land Value: Rs. 1,000,000
Step 1: Calculate stamp duty on the first Rs. 50,000:
- Rs. 50,000 × 3% = Rs. 1,500
Step 2: Calculate the remaining amount:
- Rs. 1,000,000 – Rs. 50,000 = Rs. 950,000
Step 3: Calculate stamp duty on the remaining amount:
- Rs. 950,000 × 2% = Rs. 19,000
Step 4: Calculate the Total Stamp Duty Payable:
- Rs. 1,500 + Rs. 19,000 = Rs. 20,500

Recommendation:

Use the Lexelon Stamp Duty Calculator to double-check your figures.

R M F Shahla

Articles by R M F Shahla