Stamp duty on mortgage loans
Ravikiran
(Querist) 17 December 2014
This query is : Resolved
Hi
I am opting for a home loan from SBI for my flat in Hyderabad and the banker says, he needs 0.5% of the loan amount towards stamp duty charges for loan agreement.
I have a basic doubt:
a) Is this stamp-duty mandatory?
b) If I am availing loan amount of 40 lakhs, do I have to pay Rs 20,000/- towards this stamp duty?
Banker says loan processing fee is zero but stamp-duty is something he cannot avoid as this goes to government.
Thanks
Ravi
Anirudh
(Expert) 17 December 2014
Dear Mr. Ravikiran,
I presume that you will be making an equitable mortgage (i.e. depositing the title deeds with the bank).
In that case, Article 6 of Schedule-I to Indian Stamp Act will apply.
As per the said clause, Any instrument evidencing an agreement relating to (i) the deposit of title-deeds or instruments constituting or being evidence of the title to any property, if the loan is repayable on demand or more than three months from the date of the instrument evidencing the agreement, THEN the stamp duty payable is as for a Bill of Exchange for the amount secured.
What is the stamp duty for Bill of Exchange is given in Article 13(b) of the Schedule-I, which provides as under:
"Where payable at more than one year after date of sight, if the amount exceeds Rs. 500 (Rupees five), and for every additional Rs. 1000/- or part there off Rupees Five."
For a loan of Rs. 40 lakhs it will work out to Rs. 10000/-.
However, there may be some amendment in the AP State Stamp Act. Therefore, you have to refer to the corresponding Article 6 and 13(b) in the A.P. Stamp Act.
V R SHROFF
(Expert) 17 December 2014
Rs. 1000/- or part there off Rupees Five."
For a loan of Rs. 40 lakhs it will work out to Rs. 10000/-.
CALCULTE IT
IS IT 20K???
V R SHROFF
(Expert) 17 December 2014
Rs. 1000/- or part there off Rupees Five."
For a loan of Rs. 40 lakhs it will work out to Rs. 10000/-.
CALCULTE IT [ 40*5]*100
IS IT 20K???
Ravikiran
(Querist) 17 December 2014
Okay thanks but as banker is asking for 20K. The agent also cited this is revised in 2006.How can I confirm if there is any revision and it is indeed 20K?
Rajendra K Goyal
(Expert) 17 December 2014
In some states, stamp is fixed even on equitable mortgage. Confirm from local lawyer.