Government to Cut Stamp Duty for Woman Property Buyers

February 16, 2007	(3 votes, average: 3.67 out of 5)  Loading ...
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The plans to provide women property buyers with a uniform 3% stamp duty may fall into the ‘green box’. At present, the stamp duty on real estate purchases range from 7% to 12%, depending on states. However, the Capital city is the only exception with a 4% stamp duty for woman against 6% for men.

The move is aimed after seeing a growing requirement of incentivise high property in the name of a woman. However, the execution of proposed policy will be the prerogative of the individual states.

Not all the states are following the same stamp duty structure for women. Recently, Haryana has reduced the stamp duty for women to 8% against the men which is 10%. Although, there are some states that provide a lower stamp duty for female property buyers as compared to male. Still, the rate is higher than what has been suggested by the central government.

Revenue collections of some of the states may bottom due to a reduction in the stamp duty. For example, Karnataka has been able to get the revenue of over Rs 2,373 crore in the year 2005-06 under stamp duty collections. Indeed, a 1% reduction can bring a fall of nearly Rs 240 crore, which would be a heavy loss in itself. For that reason, the implementation has been kept on hold for sometime.

There is also a proposal to move towards uniform stamp duty rates as contrary to what is the trend prevailing in the states: 10% in Uttar Pradesh, 11% in Rajasthan, and 12% in Himachal Pradesh.

Last year, finance ministry has put forward the proposal before all states to adopt a uniform stamp duty of 5%. Following the suggestion, some states such as Maharashtra and Bihar went for a reduction in stamp duties.

News Published Under:   Real Estate India |

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