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). As per the regulations of this Act, the buyer must pay a 5% stamp duty on the cost of the flat or office unit. This payment is a pre requisite for the full ownership of property and the consequences for evasion of stamp duty can even lead to imprisonment. Once the buyer decides to purchase a residential property or for that instance a commercial unit, the stamp duty is calculated according to the agreement value or the market value, whichever is higher The investor will then need to obtain a pay-order, or deposit/transfer the said sums to the account as designated by the Government from time to time after the agreement becomes capable of execution.