A stamp duty is a kind of tax that is levied on the transactions concluded by way of documentation or instruments. The tax was sealed by the Bombay Stamp Act (1958). It is to be paid by the buyer. The stamps are required to be purchased in the name of any one of the executors to the Instrument. The Demand Draft will need to be made in favour of the bank which will do the franking.

Computation of Stamp Duty
As per the regulations, the stamp duty is paid on index value or agreement value whichever is higher. For residential property valued less than Rs.5 lakhs, it will be Rs.7,650. For residential spaces that cost above Rs. 500,000, the stamp duty will be 5% of the agreement value. For commercial spaces, the stamp duty is simply 5%. However, these rates are subject to change.

Registration
The process of registration involves the submission of transaction documents (copies) to the required governmental officer for preservation. Once the stamp duty has been paid on a document, it has to be registered under the Indian Registration Act (1908) with the Sub-Registrar of Assurances of the locality of the property. Unless this procedure is completed, the investor does not have full ownership of the property.

Process of Registration
The original copy as well as two photocopies of the document must be submitted to the Sub-Registrar of Assurances. The procedure also includes a registration fee, which is fixed at 1% of the index value or the agreement value, whichever is higher with a maximum ceiling of Rs.30,000. Once again this value is subject to change. The procedure can only be completed under the presence of two eye-witnesses. When a receipt with a distinct serial number is issued, the procedure is complete.