Procedures for registration and stamp duty have been amended, here are their implications.

The stamp duty and registration department has introduced rules to curb an alarming rise in fraud by impersonation in property transactions. The changes, notified by an official circular issued recently; deal with verification of individuals and include a mandatory declaration of birthmarks and other identification marks.



1.      Witness

A person can now testify as a witness for only one document a day. Officials said this was done to rein in agents, who often pose as witnesses without knowing parties involved in a deal. Restrictions have been imposed in cases involving registration of multiple documents at the same time. If an advocate is an identifier, he can stand in as a witness and certify the identities of not more than three persons. They will be requested lo provide details of identification marks on visible areas of their body. Though optional, it will be in their interests as at the time of purchase, it can be used to verify the identity, the Inspector General of registrations and stamps had said. Mobile phone numbers and email IDs will also be sought.




2.    Frauds

Spiraling real estate price have led to an increase in fraudulent transactions, with rising complaints about irregularities in registration of documents, especially by persons posing as property owners. At times, sub-registrars have had to face police and legal action and 11 cases were filed last year against them and identifiers. The department has been collecting photos and thumb impressions of persons registering documents since 2002. It began verifying the authenticity of witnesses and appending their identity papers to documents to be registered in 2007. Photographs and thumb impressions of identifiers are being taken last since last year. Moreover, the department’s has already made videography of the process mandatory when registrations are done through home visits. Details of transactions by both parties in the last 10 years, involving property transfer must be disclosed. They will have to provide the number of registration of such transactions and other details like photographs, including the date and office of registration. This will also be used to verify their identities.




3.    Rounding off

As per newly introduced sub-section 2 of section 70 if Maharashtra Stamp Act 1958, from 01/05/2013 in case of document on which stamp duty payable is more than one hundred rupees, the amount of rupees 50 or more shall be rounded of to next one hundred rupees and amount less than rupees 50 shall be disregarded. In other words if on a document stamp duty determined is Rs.250 or more up to Rs. 299 then Rs.300 is payable where as if stamp duty amount is Rs.249 or less up to Rs.201 then only Rs.200 is payable.




4.    Valuation

If a buyer purchase immovable property/land/building having stamp duty value of Rs. 60 lakh for Rs. 50 lakh, then the difference of Rs. 10 lakh is deemed to be the buyer’s ‘income from other sources’ under section 56(2). If a done has received a gift of immovable property/land/building from a non-relative and it’s stamp duty value exceeds Rs. 50,000 then the stamp duty value of that immovable property/land/building shall be the donee’s ‘income from other sources’ section 56(2). If a seller an immovable property/land/building having stamp duty value of Rs. 60 lakh for Rs. 50 lakh; the difference of Rs. 10 lakh is deemed as seller’s ‘income from capital gains’ under section 50C.




5.     Deduct TDS


With effect from 1-6-2013, if you are buying a flat in resale or from builder valued at Rs. 50 lakh or above, you have to deduct 1% TDS and deposit it in the government account. It has come to the notice of income tax department that many times the tax deductors, after deducting TDS from specified payments, are deliberately not depositing the taxes so deducted in government account. Instead, they continue to deploy the funds so retained for business purposes or for personal use. Such retention of government dues beyond the due date is an offence liable for prosecution under section 276B of the Income Tax Act, 1961. The defaulter, if convicted can be sentenced to rigorous imprisonment for a team which can extend upto seven years.