Franking

Querist : Anonymous (Querist) 14 January 2010 This query is : Resolved
What is Franking?
Why franking is Done and what are the charges. As i am Applying for a home loan, the Bank agent has told that franking needs to done.

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krantiveer (Expert) 14 January 2010
Franking is getting the document concerned stamped with the requsite stamp duty applicable in that particular state for that particular transaction.It was introduced in maharashtra also to avoid the sale of bogus stamp papers.It is convenient and safe.

A V Vishal (Expert) 14 January 2010
This is one of the several methods of indicating the payment of stamp duty. Franking machines are installed in some Sub-Registrar office in the State. These machines frank upto a denomination of 999 rupees. An application indicating the amount of duty to be frank is made to the proper officer authorize under the rules along with the unexecuted typed or printed documents. The necessary amount is paid in cash to the proper officer and the required denomination is franked on the document and return to the applicant.

Your loan agreement document with the bank and the memorandum of deposit of title deeds(Equitable mortgage) of the financed property is done on a pre printed form for which you are required to pay the stamp duty either by way of franking the stamps or affixing spl NJ stamps of the required denomination.

PJANARDHANA REDDY (Expert) 14 January 2010
NOT ONLY REGD OFFICES , SOME PRIVATE STAMP VENDORS ALSO GIVEN FRANKING M/C TO DO THE SAME.

Raj Kumar Makkad (Expert) 14 January 2010
I do agree with the replies of all experts on this matter.

N RAMESH. (Expert) 15 January 2010
I agree with experts

Kumar Thadhani (Expert) 16 January 2010
franking unexecuted documents is another way of paying appropriate stamp duty since it is easy and convenient since it isolate bogus sale of stamp papers the document required to be stamped in that case the person concerned has to make application beore the appropriate officer or sub-registrar of that state and to such amount in cash to that officer in charge it is then the documents are stampted of such amount and returned to that person concerned in your case the homeloan agreement is required to be frankedwith bank printed format equitable mortgaged title deeds with the required denomination ofstampduty or also by affixing of special adhesive stamps on the documents