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Stamp Duty Formula:
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Stamp Duty is a tax levied on legal documents, typically in the transfer of assets or property. In Punjab, it is governed by the Indian Stamp Act and is an important source of revenue for the state government.
The calculator uses the simple formula:
Where:
Explanation: The calculation is straightforward - multiply the transaction value by the applicable stamp duty rate to determine the amount payable.
Details: Accurate stamp duty calculation is crucial for property transactions, legal documentation, and compliance with state regulations. Proper calculation ensures legal validity of documents and avoids penalties.
Tips: Enter the transaction value in Rupees and the applicable stamp duty rate as a decimal (e.g., 0.05 for 5%). Both values must be positive numbers.
Q1: What documents require stamp duty in Punjab?
A: Property deeds, conveyance deeds, lease agreements, mortgage documents, and various legal agreements typically require stamp duty payment.
Q2: How are stamp duty rates determined in Punjab?
A: Rates are prescribed by the Punjab Stamp Act and vary based on the type of document and transaction value. Some documents have fixed duty while others are ad valorem.
Q3: Who is responsible for paying stamp duty?
A: Typically, the buyer or the person executing the document is responsible for payment, unless otherwise agreed upon by the parties involved.
Q4: What are the consequences of not paying proper stamp duty?
A: Under-stamped documents may be impounded, and penalties of up to 10 times the deficit amount may be imposed. Such documents may also not be admitted as evidence in court.
Q5: Can stamp duty be refunded?
A: Refunds are possible in certain circumstances, such as when stamps are spoiled or not used, but the process involves specific procedures and time limits.