Buying a house is one of the biggest financial decisions that you will make in your life. Possession is the physical transfer of the property, but it is not sufficient. You also need to have legal evidence of ownership. For this you will have to get the property registered in your name in the local municipal records, with the seller documenting that the property is being transferred to you. At the time of registration, you will also have to pay a stamp duty which is a government tax levied on property transactions.
It is a tax, similar to income tax, collected by the government. Stamp Duty must be paid in full and on time. If there is a delay in payment of stamp duty, it attracts penalty. A stamp duty paid instrument / document is considered a proper and legal instrument / document and has evidentiary value and is admitted as evidence in courts. Document not properly stamped, is not admitted as evidence by the court.
Leading financial thought leader & industrialist Murali Kabirdass takes through the merit and demerits of stamp duty. Watch video.