Stamp Duty Refund Process: A Step-by-Step Guide
1 Junaury, 2025
Synopsis
- Stamp duty is a real estate transfer tax, and a refund can be claimed if a sales deed is cancelled within six months with a 10% deduction.
- Once you begin the refund process it can take anywhere between 15 days to several months for the reimbursement process to complete.
- Apply promptly, follow up regularly, and understand stamp duty laws to ensure a seamless refund application.
When buying a transferable property in India, there is an applicable fee known as stamp duty. You are eligible for a refund of the stamp duty you paid if you've cancelled a sale deed. There are a few things you need to know to receive your money back as the stamp duty refund procedure is often simple.
How Much Stamp Duty Registration Charge Refund Can I Get?
Stamp duty is an Indian tax assessed on the transfer of real estate. The authorities may impose registration fees to record property ownership. In India, registration fees differ depending on the state and kind of transaction.
A registered sales deed can be cancelled within five years of the date of agreement registration. Within six months of the sales deed cancellation being registered, you may request a reimbursement.
Should the applicant decide to cancel within six months, a 10% deduction will be made from the stamp duty refund. The moment a cancellation deed becomes effective, that is the ideal time to request for a stamp duty refund.
Step-by-Step Guide to Stamp Duty Refund Process
By making refunds accessible online on their individual websites, some state governments have expedited the refund process. On the other hand, some documents must be deposited at the collector's office. Here are the steps to get a refund:
Complete the application form, either in person or online, as soon as the sale deed is ruled void.
Send in the application form together with copies of all required paperwork.
The application is reviewed for legitimacy by the Sub-Registrar or other relevant revenue officials after it is submitted.
The Collector or Deputy Collector receives the application, reviews it and processes the claim.
It can take anything from 15 days to several months to receive your stamp duty rebate due to the process involved. So, keep checking the stamp duty refund status from time to time.
Tips to Remember for Stamp Duty Refund Process
Here are some tips to remember for reimbursement of stamp duty:
Before signing anything, verify all your documents one more time.
It is advisable to apply as soon as possible to guarantee a refund.
Don't forget to follow up with the authorities on a regular basis to find out the status of your refund.
To guarantee a seamless application process, familiarise yourself with stamp duty laws and regulations.
Get Home Loans and a Streamlined Service with HDFC Bank
HDFC Bank offers a wide range of Home Loans. When you choose HDFC Bank for your financing needs, you benefit from a streamlined application process, competitive interest rates, doorstep services and minimal documentation. You can apply for a Home Loan online Get started here.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
