The property buy incorporates different little and huge installments that can possibly generously lift the rates. For instance, on the off chance that one discusses home credit, they need to pay the handling expenses to the bank. Click here for the details… http://www.favista.com/blog/2018/02/16/what-are-franking-charges/\n
WHAT ARE FRANKING CHARGES?
What are Franking Charges?
©February 16, 2018 & Real Estate # Franking Charges real estate, india
property blogs, property blogs, property website blogs, real estate blogs, real estateproperty blogs, real estate property website blogs, What are Franking Charges 1 Srishti Chandola
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The property purchase includes various small and big payments that have the potential to substantially jack-up the rates. For example, if one talks of home loan, they have to pay the processing fees to the bank. Also, one must have to bear the technical appraisal cost of property that bank would carry out. To make a legal purchase, the buyer has to pay the stamp duty depending on the state where the transaction takes places, charges may actually vary from 4 to 10% of value and registration charges typically 1% of complete value.
What has caught the attention so far in fact that one may also have to pay the franking charges while stamping the papers to property. More importantly, if one thought that franking and stamping are same things, you actually thought wrong.
What’s the difference?
The stamp duty is the tax you actually pay to the state to buy a property. On the other hand, franking is the process to stamp the property documents. Using the franking, authorized banks stamp the document or affix the denomination on it which actually acts as the proof that stamp duty for the transaction has been paid. The banks and other authorized agents use the franking machine to affix the documents.
Also, keep in mind-
The authority franking the documents would actually ask to pay the price for giving the services. While some may do it for free, others may charge 0.1% of the complete purchase value as the franking charges. Thus, if you are purchasing a property which is worth Rs 50 lakh, one may have to pay the franking charges of Rs 5,000. You may, however, set off this amount against the stamp duty that you pay. For example, if the stamp duty is the state is 5.2%, you will have to pay 5.1% as the stamp duty if you are paying the franking charges of 0.1%.
■ All banks or agents don’t authorize to offer the franking services. In case these have official permission, the banks at times have limited franking quotes as well as offer the services only for a specific hour of the working day. This basically means that prior preparation is required in the case you want to get the property documents franked from agent or bank. It is advised not to entertain these without being specific that the agent is authorized to do franking.
■ All the banks don’t follow similar rules when it comes to the franking and charges involved in the process. Charges and rules could differ from one state to another, from one agent to another and from one bank to another.
■ Importantly, it doesn’t just go for franking. You could choose to go for the e-stamping or alternatively buy the stamp papers to do so. Also, there are options to purchase papers that are already stamped.
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