The concept of stamp duty was introduced in the late 19th century which made the homebuyers liable to pay a sum of money as tax while they purchase a particular property. In other words, it can be stated as the tax amount that is charged by the state government on the various documents that are required for registration.
Stamp duty is a tax which is collected by the government. It is a compulsory tax that is payable under Section 3 of the Indian Stamp Act, 1899. A stamp duty paid document is considered a valid legal document and can be used as evidence in a court of law.
A government tax called stamp duty is levied on property transactions and collected at the time of registration. This tax is levied under Section 3 of the Indian Stamp Act, 1899.
Stamp duty and registration charges are levied by state governments and as such, these levies are subject to laws made by the states even though they are provided for by Central legislation.
The most common problems that buyers face when purchasing property is the lack of knowledge of the expenses associated with the transaction. A purchase transaction of residential property has several hidden costs that can add to the heavy cost a buyer has to bear for an immovable asset like a house.