What Is Stamp Duty?
Stamp duty is a tax levied on documents that have some financial aspect in a transaction while executing deeds, instruments or documents as stipulated within that State’s Stamp Act. This tax paid in the form of stamp duty is paid to the center and the State (depending on the type of document, deed or instrument executed). Citizens are required to pay stamp duty to the respective State Government while executing wills, agreements, affidavits, deeds, etc. Once Stamp duty has been paid properly and fully, the deed is said to be registered. For instance, if you rent a property in Himachal, you buy a stamp paper of certain value and execute a rental agreement on it, thereby making a payment of stamp duty in Himachal Pradesh.
To help calculate the value of stamp duty required, we at LegalDesk.com have developed a stamp duty calculator which lets calculate stamp duty payable on the lease of properties. By using our DIY rental agreement online, you can create your own personalized rental agreement. To give our readers a better understanding, we have already covered an article on how to make a rental agreement in Himachal Pradesh.
Himachal Pradesh Stamp Act, 1899
Stamp Duty and registration fees collected by the State of Himachal is an important source of revenue for the State Government and accounts for almost 5% of the actual revenue collected from all sources. The Indian Stamp Act of 1889 regulates the State Stamp Act of Himachal Pradesh and the same Act was simultaneously used for regulating stamp duty in several States such as Punjab, Himachal Pradesh, Orissa, and so on. Since 1899, there have been several amendments, Rules and changes made to the Indian Stamp (Himachal Pradesh Amendment) Act and the Transfer of Property Act, 1908. Some of the most recent and significant amendments and changes to the Indian Stamp Act with respect to Himachal Pradesh have been the Himachal Pradesh Stamp (Amendment) Act in 1952, 1969 and the Himachal Pradesh Stamp Rules in 1973.
Stamp duty in Himachal including the registration charges for the transfer of an immovable property is higher than most other States in the country. Because of these high rates, new land owners avoid registration of the property once a transfer has taken place. Additionally, this leads to a loss of revenue for the State Government, makes the identification of a property’s true owner really difficult and increases in litigation. A reduction in the rates of stamp duty and registration charges will lead to the sale and purchase of property being cheaper and an increase in the number of registrations within the State.
The rates of Stamp duty in Himachal Pradesh with respect to the sale, gift and mortgage with possession are 5% of the market value of the property or the consideration amount (whichever is higher).
These rates were originally at 8% (which is really high) and were reduced to 5% vide a notification on Stamp Revenue in 2007. The rates of registration fees for the sale, gift and mortgage are 2% of the above-stated amount (5%). This 2% registration charges are subject to a minimum of Rs.5 and a maximum of Rs.25,000. A notification issued in 2013 aimed towards women empowerment brought the existing rate of stamp duty of 5% to 4% for the registration of property for women and increased the stamp duty rates from 5% to 6% for men. In 2017, the State passed a bill to reduce the rate of duty from 6% to 3% for women on the purchase of land for residential purposes.
The Himachal Pradesh e-Stamping Rules were issued by the Revenue Department of the government of HP in 2011. To get an e-Stamp certificate, an individual must approach any branch of the Central Record keeping Agency or Authorized Collection Center and submit Form 4 along with the requisite stamp amount payable (which can be paid by cash, bank draft, pay order, electronic clearing system, etc.). Section 17 of the Act stipulates documents which are compulsorily registrable in the State and Section 18 stipulate the documents of which registration is optional.
Integrated Land Record Computerisation (HIMRIS)
HIMRIS is a software developed by NIC Himachal Pradesh for the computerisation of deed registration in the State. It’s interlinked with HIMBHOOMI, a software for maintaining land records in HP. SHCIL has also facilitated e-stamping for the state.
HIMRIS was developed to facilitate the electronic delivery of all registration services, the collection of transfer duty, stamp duty and registration fees, registration of documents, encumbrance of certificates, certified copies, and several other services for the citizens of the State.
Some of the major advantages of HIMRIS are:
- Reduced registration time and delivery time
- On spot registration in a single window
- The software uses a bilingual interface (English and Hindi)
- Deed registration requires only one visit to the Sub-Registrar’s Office
- HIMRIS covers all types of deeds
Modes To Buy Stamp Paper In Himachal Pradesh
Stamp Duty in Himachal Pradesh can be made in the following ways:
|1||Traditional Stamp Paper||Yes|
Stamp Duty Charges In Himachal Pradesh
Stamp papers have varied rates and stamp values. Each type of document or instrument has to be executed on a stamp paper of stipulated value. This value is based on the type of deed or document, location (within the State of Himachal Pradesh) and the value of the transaction or property. An instrument must be stamped accurately to make the said document legally valid and enforceable in a court of law.
|Sr. No.||Type of Deed||Stamp Duty Payable|
|5||General Power of Attorney||Rs.100-200|
|6||Special Power of Attorney||Rs. 100|
|8||Notarial Act||Rs. 10|
How Can LegalDesk Help?
LegalDesk.com is your go-to solution provider for all your legal, administrative and registration needs. We have also introduced an API for stamp duty payment that can be used by companies and individuals alike. We can help with drafting documents such as affidavits, partnership agreements, rental agreements, wills, trust, adoption deeds, power of attorney, gift deed and several other documents as well. Require a service? Request one now.