The new stamp duty rates for leave and license agreements will be applicable from 1st May 2013. Have the rates gone up? If your total rental income is below 5-7 Lac levels (approximately, see comparison below) the stamp duty has actually dropped! The authorities have tried to rationalise the stamp duty rates which is only fair. Earlier you paid a maximum of Rs.5,000/year as stamp duty for residential properties. Now, that changes, the more you earn the higher the stamp duty. Here’s the new clause:
Here’s how you compute the new stamp duty rates:
- Monthly rental x no. of months = A
- Advance rent for the period = B
- 10% of Refundable Deposit x no of years of the agreement = C
- Total taxable amount D = A+B+C
- Stamp Duty E = 0.25% x D
So what’s the difference between the old and new stamp duty rates? The earlier schedule was:
Here’s a comparison chart between the old and new rates for an agreement period of 12 months across 5 scenarios.
So, do you think that the rationalisation of the stamp duty is fair? Look forward to your comments.