Is stamp duty charged on loan amount or mortgaged property value?
In the case of a bank loan, is stamp duty charged on the property value (which is mortgaged) or the loan amount? In this particular case, the loan amount is double the property value.
Stamp duty for loan documentation is typically charged on the loan amount, not the property value, as per the Indian Stamp Act, 1899. However, the specific rate and calculation can vary by state, so it's advisable to consult the local stamp duty regulations of the state where the property is located.
Under Indian stamp laws, for a mortgage deed/loan agreement, stamp duty is generally calculated on the loan amount (principal sum secured) and not on the property value, as per Article 40 of the Indian Stamp Act, 1899. If your loan amount is higher than the property value, the stamp duty would still be calculated on the total loan amount, though exact rates vary by state and you should consult the applicable state stamp act for specific rates.
Sir, stamp duty on a mortgage deed in India is generally charged on the higher of the loan amount or the property value. If the loan amount exceeds the property value, stamp duty will likely be calculated based on the loan amount. The specific rates vary by state so it is advised to consult an expert lawyer for precise details. For further legal assistance contact us on our helpline number.
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