Government to Remove Stamp Duty on Property Deals

February 26, 2007	(5 votes, average: 2.6 out of 5)  Loading ...
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The stamp duty on property transactions will soon be removed thereby bringing a joyous time for home owners.

Stamp duty would only be imposed on the first transaction of land, as per the 2006 National Urban Housing Policy. The provision is waiting for the final nod from Cabinet.

According to today’s scenario, societies and housing co-operatives require to encourage the group housing. Stamp duty in such cases at the stage of raw land and first sale thereafter would be imposed on value added basis. This will help the property rates to get stable to the first purchaser and housing land remains a liquid asset.

At present, stamp duty is being charged on both the land and the apartment. However, its percentage varies from state to state as it’s not uniform. For example, Haryana charges 8% stamp duty, Uttar Pradesh has 10% and it is 65 in Punjab.

Land has been held in a company that is not taking up the construction of housing accommodation. This is primarily done to prevent the double incidence of stamp duty. The company acquiring the land transfers the land to the buyer at the time of sale of residential unit.

The shift will bring high profits for property buyers. There is a concept of group housing (also known residential complexes) with the service tax law. They are believed to incorporate more than12 residential units. These units can be apartments or even row house, says Satya Poddar, partner, Ernst & Young.

News Published Under:   Real Estate India |

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