Stamp Duty Cut for Textile Mill Lands

May 24, 2007	(Be the first to rate this story!)  Loading ...
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Facing a strong protest from the mill land developers, the Maharashtra Government is bringing down the value of textile mill lands in its Stamp Duty Ready Reckoner by 10-20% in a couple of weeks.

The proposed move will decrease the incidence of stamp duty for those who are considering purchasing residential property or commercial property on the mill lands undergoing construction. There is an increase in the values of mill lands, which were sold off to real estate developers by inviting open tenders, by 5 to 500% in its Ready Reckoner thereby adding to the burden of stamp duty.

Currently, the stamp duty is 5%. However, the ambit does not include any residential projects, where it is Rs 7,600 up to Rs 5 lakh and 5% above Rs 5 lakh. The land value for the evaluation of stamp duty is seen on the basis of land rate and cost of development plus 25% profit in residential projects or 50-100% in case of commercial projects.

Turning an ear to complaints of mill land developers, the state principal secretary called a meet on May 16 with town planning officials on decreasing the land value in the Stamp Duty Ready Reckoner.

Property tax and other taxes are calculated on basis of the market value mentioned in the reckoner. The State Town Planning Department will make a draft and the Inspector General of Registration and Stamps (IGRS) will issue a corrigendum to the Ready Reckoner.

News Published Under:   Real Estate India |

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