A property seller and buyer both have to face the income tax implications if there is a difference between the property selling/buying value and the ready reckoner value of a property as this cost directly reflects on the stamp duty charges. Remember that ready reckoner rate commonly termed as RRR is a term defined for circle rate. In India, a person is required to pay the stamp duty charges to the Government at the time of buying a property. So, in this blog post, we help you know the importance of stamp duty in relevance with income tax.
1. What is Stamp Duty?
Stamp duty is an indirect tax levied by the State Government on the property deal which includes buyer and the seller or even more parties within the state’s jurisdiction. Many Indian states also offer a rebate in the stamp duty charges for women home buyers like the national capital Delhi, its neighboring state Haryana and Rajasthan charge 1% or 2% less stamp duty in comparison to the male home buyers.