Q. What is the market value of a property?
A. Market value in relation to any property which is the subject matter of the instrument means the price which such property would such property would have fetched if sold in open market on the date of execution of such instrument or document or the consideration stated ion the instrument whichever is higher. However, for payment of stamp duty, market value is the value as worked out as per ready reckoner or the consideration stated in the instrument whichever is higher. As per new amendment in the Income Tax act The Market Value for the purpose of Capital Gains Tax is the same as the Market Value for Stamp Duty payment, which is worked out as per ready reckoner. Hence it is advisable that the seller should record actual selling price worked out with the help of ready reckoner and avoid under valuation with the intention to save capital gain tax.

Q. What is the use fullness of Stamp Duty Ready Reckoner?
A. As explained earlier Stamp Duty is charged on the market value of the property purchased and not on the agreement value. Now the question arises as to how to arrive at the Market Value. The Stamp Duty Ready Reckoner, by Santosh Kumar and Sunit Gupta, contains precisely this information in easy to understand language. It contains market rate of property fixed by government for each zone in each locality / village / division. It further contains details about certain additions and allowable deductions to be made in valuation. It also contains valuation factor to help ascertaining the market value. In all it contains everything including all guideline, rule, table, rate and map that is required while arriving at the market value on which the stamp duty is charged. Further all these rule, tables, guidelines and rates are adopted as per guidelines approved by the Town Planning and Valuation Authority, Government of Maharashtra and which is used by Stamp Duty and Registration department to ascertain Market value of the property under consideration. This book is available in market for Rs. 250/- only.

Q. Where can a person pay stamp duty?
A. Stamp duty could be paid legally without adjudication, on the basis of the Ready Reckoner, at the following offices. An amount up to Rs. 25,000 is accepted in cash and an amount above that is to be paid by bank draft or pay order drawn in favour of the "Superintendent of Stamps, Mumbai" payable at Mumbai. An amount above Rs. 25,000 can also be paid in cash at Reserve Bank Of India, through an duty authorised challan. A duly authorised challan can be obtained from General Stamp Office at Fort.

General Stamp Office, Town Hall Building, Gorund Floor, Near Horniman Circle, Fort, Mumbai - 400 001. Office of The Sub Registrar and Administrative officer, Old Custom House, Ground Floor, Near Horniman Circle, Fort, Mumbai - 400 0023.