A year back I purchased a house in Jayanagar. I had paid the Stamp Duty and Registration as calculated by the Sub-Registrar. The Khata is changed to my name and I have paid the upto date property tax. But recently I have received a notice from Department of Stamps and Registration (under valuation) stating that the house is undervalued in the sale deed, and has demanded further stamp duty of Rs. 33,000/-. I have paid the stamp as determined by the sub-registrar. Then how the department can issue a notice?
The Stamp Duty on conveyance of immovable property is based on the market value of the property/ guidance value. If the market value is less than the guidance value, stamp duty has to be paid on the basis of guidance value. If the market value is more than the guidance value, the stamp duty is payable on market value. Though you have paid the duty as calculated by the sub-registrar, the deputy commissioner may within two years from the date of registration, call any instrument for examination, and if found undervalued, may determine the correct market value and call the party to pay the difference amount. If you have sufficient evidence to show, that value of the property is disclosed is correct market value, you may contest the notice duly supported by documentary evidence. You may also pay the difference amount as demanded and get document endorsed.