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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?

- by Shivanandan, J.P. Nagar

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.


These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.


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Q:- I have purchased a house in January 2003.The sub-registrar of Basavanagudi, where the sale deed was registered, did not agree for the stamp duty paid on the sale deed and served us a notice to pay additional stamp duty of Rs. 6,575/- which was also paid and the sale deed was registered. The registered sale deed is with me. I am in possession of the house. But recently I have received a notice from the Department of under valuation stating that the property is undervalued and to pay additional stamp duty of as Rs. 4,255. As I have paid the stamp duty as demanded by the sub-registrar why this notice? Can I ignore the notice?  Please advice.