Ever wondered how the papers related to property become valid documents after paying stamp duty manually? The answer to this question is Franking Charges. Franking is the process of getting the documents stamped after depositing all the taxes related to the purchase of the property. Banks and authorized agents authenticate property documents using Franking machines. This is a proof that the stamp duty of the concerned has been paid. Note that not all banks or agents are allowed to provide Franking service. In this process the bank or the authorized agent charges a fee for this service. This fee is called franking charge. It does not exceed 0.1% of the entire purchase price of the property. Sometimes it is free too. On the other hand, stamp duty is the tax paid to the government. For example, if the stamp duty in a state is 7.5 per cent, then 7.4 per cent has to be deposited at the sub-registrar office and 0.1 per cent at the franking authority. For example, if a person buys a property worth Rs 50 lakh, the franking charge will be 0.1%. This amount will be 5 thousand rupees. There is no GST on franking charges.
If someone wants to avoid the manual method like franking, then the alternative is e-stamping. Here the buyer has to deposit the stamp duty online only. In real time payment, the buyer does not have to go through the manual process of franking.
Krishna Homes, Adjoining Toyota Showroom , Hoshangabad Road Bhopal 462026
Site Address : E-8, Arera Colony, Near Sagar Public School, Aakriti Eco City, Bawadia Kalan, Bhopal (M.P.) 462026
Mob: 7354815577
