Rules for Refund of Stamp Duty Paid

For all property transactions, the buyer has to pay certain amount as stamp duty. This is either a fixed amount or a percentage of the property’s market value. You also have to pay registration charges, for registration of the agreement. The stamp duty rates and registration charges payable, are determined by the respective state governments. So, the rules for refund of stamp duty that is paid for property transactions, would vary from state to state. You are required to pay the stamp duty before the execution of the document.

Circumstance under which Stamp Duty Paid get Refund: 

  • Paid excess stamp duty or penalty 
  • Un-used stamp papers or spoiled stamp papers 
  • Cancellation of document were judicial stamp paper is required but non -judicial used or vice – a – versa.
  • As per court order stamp duty refund
  • If stamp duty has been deducted two times on the same document
  • Paid online stamp duty to different departments or different heads
  • Cancellation of the agreement with Builder or Vendor

Limitation Period for Refund of Stamp Duty: Refund of Stamp Duty has to be claim within 6 months for clam of Stamp Duty Paid. The Maharashtra State Government has amend Section 48 (Related to sale of property) of the Bombay Stamp Act 1958 to allow flat buyers to get stamp duty refunded upto to 2 years after the cancellation of the agreement with the builder. 

Deduction: Stamp Duty is refunded after deducting 10% of the total amount of duty paid, but refund of payment made through e-payment for Stamp Duty, deduction is Rs. 1000 per Challan. 

List of document to be submit for getting Refund of Stamp Duty Paid:

  • Original Instrument with one Xerox Copy
  • Original receipt of purchase stamps
  • affidavit in prescribed format
  • Certificate of Collector of Stamp for Genuine of Stamps
  • Reconciliation Certificate of Treasury or Success Report
  • If Stamps are purchased on behalf of any party, then No Objection Certificate of the Stamp Purchaser(s)
  • If there are more purchasers of the Stamp Instruments and one Purchaser applied for the refund, No Objection Certificate of the remaining purchasers
  • True Copy of sale of stamp register. (No applicable for E-Stamp)
  • Certificate of sale of stamp
  • POA if any other person other than purchaser of stamp applied for refund
  • True Copy of page of computer register in case of E Stamp
  • If document is unregistered than report of collector of stamp about locking of E-Stamps
  • If document is registered than report of sub – registrar about locking of E – Stamps

Refund applicant can be made Online through official portals. Party desiring to have refund of stamp duty must apply with concerned District Collector/Sub-Collector/Deputy Collector/R.D.O/Tehsildar under section 2(9) of Indian Stamp Act through the Sub – Registrar dully mentioning the explanation for seeking refund beside challan and receipt in original issued by the Selected Bank Branch.

The Sub Registrar on receipt of application can verify and once satisfied that the challan and receipts are genuine and haven’t utilised, can issue the certificate to it. Based on certificate issued by Sub – Registrar, the amount get refund after deduction of Rs. 10% of the entire amount of Stamp or Rs. 1000 for each Challan in case of e-payment of Stamp Duty.

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