“It is expected that, under the HFA, several additional lakhs of houses will be built with direct or indirect central subsidies. These houses will generate huge “incremental” tax revenues for states, which go beyond the normal growth in stamp duty and registration fees revenues, which are determined by economic activity. States can share some of this additional tax revenue with buyers of low-value homes by reducing or eliminating their stamp duty and registration fees. Lower prices could encourage more people to look for affordable homes. In addition to an increase in the housing stock, lower prices are a must if HFA is to succeed,” says the study entitled “A Revenue Neutral Approach to Lower Stamp Duty and Registration Charges for Affordable Housing “. In this method, the agreement is printed on ordinary paper. This document is submitted to an authorized bank that processes documents through a frankier machine. Authorized banks stamp the proof of purchase of real estate or set a unit value. This proves that stamp duty was paid for the transaction.
It is important to determine the exact floor where the property is located, since the calculation of the valuation must take into account the “Raise” component in the prefabricated invoice based on the floor of the building where the property is located. In general, the soil is mentioned in fact/index II. The increase in valuation is taken into account according to the following table: Step 3 – Choose the location or area where the property is located from the classification available on the Registrar Office website or on MyLoanCare. “Contract value” is the value indicated in the sales note. The home loan is given on this amount. Registration and stamp duty are paid on this amount. If you sell the apartment in the future, the difference between the sale price and the value of the contract is your capital gains. For all intents and purposes, the contractual value is the price you paid to get this apartment.
The acquisition of a property on the Indian market means that this is the price at which the property is sold on the open market. In general, the market value is always higher than the contract value. There is no defined formula for calculating the fair value of a property. The most common practice used to estimate fair value is to examine cases of the sale of similar property in the same environment. Fair market value is the value that gives the idea of how much money can be earned by selling the property at the right time. Market value has nothing to do with stamp duty. The property market is the value a homeowner would receive from the home if it is sold by the owner. Market value also plays a very important role in calculating the creditworthiness of home loans and loans. For home loans, contract value and market value come into play.
As has already been said, few banks consider 90% of the value of the contract. Similarly, these banks consider 80% of the market value. But at the same time, lower of the two is considered while the loan to the customer. In the case of a credit against real estate, only the market value will be offered for the calculation of the eligibility of the loan on the property.