Valuation Of Property

 

Valuation Of Property:-

 

Q:- What is meant by market value of land/property?

 

Ans:- In the transaction of immovable property between two parties, the market value of land/property means the price which such property would have fetched if sold in open market on the date of execution/signing of such instrument or the consideration stated in the instrument, whichever is higher.

 

Q:- For which document, the true market value as per Annual Statement of Rates is taken into consideration?

Ans:- In the case of instruments or subject matter of instruments such as Agreement to sale,Conveyance deed, Deed of exchange, Certificate of sale, partition deed, Power of attorney given to a third person to sell property with or without consideration, Settlement deed, Lease deed, Transfer of lease and development agreement, the stamp duty as per the true market value of the property is taken into consideration.

 

Q:- On what basis the assessment of stamp duty is levied?

 

Ans:- The stamp duty is levied on the higher gain/amount in between the consideration amount mentioned in the document or the value of property computed at the rate mentioned in the Annual Statement of Rates whichever is higher.

 

Q:- If the date of execution and the date of registration of document are different, the value of which date is taken into consideration for stamp duty?

 Ans:- If date of execution and the date of registration of document are different, the value arrived from Annual Statement of Rates prevailing on the date of execution of document is taken into consideration for stamp duty. For detailed information see Part-3, Stamp Duty

 

Q:- Will it be proper to do the valuation directly at the rate given in Annual Statement of Rates?

 

Ans:- No. Instead of making valuation only by considering the rate in Annual Statement of Rates,valuation is done by considering the accompanying Guidelines.

 

Q:- Can the sub-registrar, register a document at a rate lower than the market value determined on the basis of rate from the Annual Statement of Rates and the Guidelines?

Ans:- No. He can register such documents only in cases under adjudication as per section 31 of the Maharashtra Stamps Act with available proofs and as per value fixed under valuation by competent officers.

 

Q:- Is it necessary to mention facts affecting stamp duty in document?

 

Ans:- Yes. As mentioned in Section 28 of Maharashtra Stamp Act, all the facts affecting the chargeability of stamp duty shall be fully and truly set forth thereon. Similarly it is necessary to submit the incidental proofs in support of them.

 

Q:- Is the value of a property assessed by Government, Semi-Government bodies e.g. CIDCO,MHADA, MIDC etc. considered admissible as final value?

 

Ans:- Yes. According to Rule 4(6) of Maharashtra Stamp (Determination of true market value of property) Rule, 1995, if a property is being sold/allotted in its first transaction to beneficiaries by Government / Semi-Government bodies, the value fixed by such Government / Semi-Government bodies is considered admissible as final value.

 

Q:- At what rate, the value of a plot of land allotted by Government / Semi-Government bodies is fixed while transferring it to another person?

 

Ans:- If a plot allotted by Government / Semi-Government bodies is being transferred to another person, its value is computed at the rate stated in the Annual Statement of Rates.