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Posts Tagged ‘Stamp duty’

Reduction in Stamp duty help Common Man

Monday, May 3rd, 2010

The State Budget has extended some concessions in the form of reduction in stamp duty charges. The stamp duty on sale agreements of immovable property (without delivery of property) has been reduced to 0.1 per cent of sale value, subject to a minimum of Rs. 500 and maximum of Rs. 20,000.The stamp duty on DTD (Deposit of Title Deeds, executed at the time of taking home loan or loan against property), has been reduced to 0.1 per cent of loan amount subject a minimum of Rs. 500 and a maximum of Rs. 50,000.

For a sale agreement to buy a house for a consideration of Rs. 50 lakh, the stamp duty last year was Rs. 12,500, which will now get reduced to Rs. 5,000. If you had taken a home loan of Rs. 40 lakh in the last year, the stamp duty on DTD would have been Rs. 10,000, which will now get reduced to Rs. 4,000.

The budget has rationalized stamp duty payable on leasing out property. The stamp duty payable for a residential property leased out for less than one year, the stamp duty payable is 0.5 per cent of annual rent and advance (deposit) taken, subject to a maximum of Rs. 500 only. If the property let out is commercial or industrial, the stamp duty payable would be 0.5 per cent of annual rent plus money advanced, without any maximum limit.

The stamp duty for lease period has been now reduced to one per cent for lease period from one year to 10 years. Further, stamp duty applicable on lease period of 10-30 years has been reduced to two per cent for lease period of 10-20 years and three per cent for lease period of 20-30 years.

The builders and developers will also benefit from the budget as stamp duty on sale agreement (joint development) has been rationalized to one per cent of market value with a maximum of Rs. 1.5 lakh. Similarly, stamp duty payable on Power of Attorney (given for developing/construction), has been rationalized to one per cent of market value, subject to a maximum of Rs. 1.5 lakh.

The State Government has been following the stamp duty rates as recommended in the National Habitat Policy in order to get various benefits available under JNNURM (Jawaharlal Nehru National Urban Renewal Mission). Hence one can expect the stamp duty charges on registration of immovable property to get reduced from the present six per cent to five per cent in the next budget (2011-12).


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Reduction in stamp duty is a boon

Friday, March 12th, 2010

In recent Karnataka budget 2010-11, the decrease in stamp duty is expected to cause some optimism among home buyers. Real estate sector is gradually becoming active and reduction in stamp duty in recent budget is boon for for those homebuyers or investing in real estate.

Stamp duty on Deposition of Title Deed (DTD) would be would be reduced to 0.10 per cent from previous 0.25 per cent subject to a maximum ceiling of Rs.50,000. For amalgamation and de-merger of companies, present rate of 5 per cent would be brought down to 3 per cent. One per cent duty would be imposed on papers of Transfer of Development Rights (TDR).

An appropriate amendments would be brought in to stop stamp duty evasion in transfer of apartments/flats. Stamp duty on Agreement to Sale to be modified from 0.25 per cent to 0.10 per cent subject to a maximum of Rs.20,000. After further simplifying of duty structure in respect of lease and license, Stamp Duty at the rate of 0.50 per cent will be imposed for a period up to 1 year subject to a maximum of Rs.500 for residential buildings. Stamp Duty would be imposed one, two and three per cent respectively for a period of one year to 10 years, 10 to 20 years, 20 to 30 years, based on average of one-year. rentals and advance

Stamp Duty and Registration Fee exemption

In the recent budget 2010-11, it is decide to exempt Stamp Duty and Registration Fee fully in respect of loan documents of rainwater harvesting units, houses built under Indira Avas Scheme and non-conventional sources of energy – like solar and bio-gas energy units. Stamp Duty and Registration Fee exemption will be granted in respect of documents transferring properties for public purposes, free of cost to local bodies and urban development authorities. Duty in respect of annulment of all kinds of documents will be simplified.

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Hassle free Property Registration at Post Office

Monday, September 14th, 2009

Karnataka Stamps and Registration Department is considering over 2000 post office and equal number of public sector banks across the state for property registrations. The department has been running the pilot project for the e-stamping initiative at four sub-registrar offices in the city. Property buyers will not have to go through the hassle of paying the registration fee and stamp duty at the sub-registrar’s office from next month.

On a pilot basis, the department is planning to launch the facility in 75 post offices in Bangalore by next month. A public sector undertaking, Stock Holding Corporation of India Limited (SHCIL) would be in charge of keeping a centralized record of all e-stamping documents. E-stamping is computer based application which enables you to pay for stamp duty using electronic device.

The postal department wants to charge Rs 10 as an additional fee from customers for e-stamping denominations up to Rs 100, and Rs 15 for e-stamping denominations above Rs 100. This is in addition to 0.15 per cent commission per transaction, which post offices get from the government for the e-stamping.

The department in association with SHCIL, is implementing e-stamping to put an end to illegal benami registrations and for plugging revenue leaks. The post offices have expressed interest and are waiting for a final approval by the state finance department.

Links to Refer:

Property Registration at post office

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Stamp Duty Cut on GPA-Executed Sales Deed

Monday, June 22nd, 2009

Stamp duty on General Power of Attorney (GPA) based documents has been reduced by state government to 6 per cent. An ordinance promulgated on June 4, Stamp duty for GPA-based document was reduced along with cut down in stamp duty for first sale of apartments.

Union government has asked state government to reduce stamp duty to bring uniformity across the country. The buyers will have to pay stamp duty 6 per cent and 10 per cent cess on stamp duty and depending on the place of transaction additional duty on stamp duty and a surcharge will be imposed. A stamp duty of 6.72 to 6.78 per cent will be levied on transaction which includes surcharge, additional duty and infrastructure cess.

Reduction on stamp duty for GPA-executed sales deed will benefit to property buyers in urban area when comparing with rural area property buyers. Normally transaction of GPA-executed sales deed is found in urban areas such as Bangalore, Mangalore, Mysore and other urban areas. In urban areas GPA executed sales deed could amount 5 per cent of total transaction and it is around 1 per cent in rural areas.

If the transaction is in corporation limit, surcharge and additional duty of 2 per cent on stamp duty will be levied on transaction and the transaction in gram panchayat limit such transaction will levy 3 per cent on stamp duty.

Reference:
Stamp duty cut on sale deed executed by GPA

Knowledge-Articles for residents of apartment

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E-Stamp for Property Registration

Monday, June 15th, 2009

The Stamp and Registration Department will catch up and implement e-stamp project for registration of property. From this August onwards, you will not have to stand in long queue at sub registrar’s office or in bank to purchase stamp papers.

E-stamping is computer based application which enables you to pay for stamp duty using electronic device. It is safe, secure and easy process of paying stamp duty when comparing to traditional stamp duty payment. In short, “e-Stamp” means an electronically generated impression on paper to denote the payment of Stamp duty, by Central Record Keeping Agency or ASC.

At present government has authorized national banks to sell stamp paper and these bank will continue issuing stamp paper but not under e-stamping system. Government will take decision on whether to with draw the service or not depending on success of e-stamp paper. The system was launched with association of Stock Holding Corporation of India Ltd (SHCIL).

In future, payment of stamp duty will be collected by Authorized collection Centre (ACC) or Authorized Stamping Center (ASC). The ASC official will feed details of transaction after collecting stamp duty and will generate a stamp duty paid certificate. This will not take more than five minutes. The revenue department has framed separate rule under Karnataka Stamp Act for implementing e-stamping system The Karnataka Stamp (Payment of Duty by Means of e-stamping) Rules, 2009.

E-stamp certificate is temper proof with security features such as 2-dimensional barcode, watermark and micro-digiting. The agents have to register with SCHIL and need equipments such as computer with internet, printer and other related infrastructure. Agents could be post office, banks or charted accountant and they will get 0.15% from SCHIL on each transaction. E-stamping was launched by the state government in 2008 with a pilot at Gandhinagar sub-registrar office which spread to other four SR offices.

Applicants for e-stamp duty need to pay ASC official for stamp duty and they will feed the details or information provided by applicant and downloads the e-certificate. The print out of same is taken and sign with date and official seal. Non-washable permanent black ink is to be used by official to sign. Applicant can go to sub-registrar office with the certificate.

Links to Refer

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Property Registration Is Getting Cheaper

Monday, May 25th, 2009

Stamp duty for property registration was reduced from 7.5% to 6% and the first-sale flat was made this benefit available. Now overall registration will go down, government will reduce cess and surcharge.



The notification will be issued next couple of days and this revised levy will be in effect from June. The notification will also include new flat rate of Rs 1000 for stamp duty and Rs 500 for registration of documents registered as gift deed.

From the June, property buyers in urban areas like BBMP, corporation and urban local bodies will pay 7.72% towards property registration and buyers in rural areas such as Taluk or village panchayats, agricultural lands will pay 7.78%.

A certain percentage of stamp duty is charged towards surcharge and infrastructure cess. With the reducing of stamp duty these rates will also come down. If a buyer is paying Rs 94,000 for urban property valued at Rs 10 lakhs, he will pay Rs 60,000 towards stamp duty, Rs 6000 towards infrastructure cess. From June onwards surcharge for rural areas will be only Rs 1,800 and Rs 1,200 for urban areas. Registration fee will be upwards of Rs 10,000 Levy for total registration will be Rs 77,200 for urban and Rs 77, 800 for rural.

Government amended the Karnataka stamp Act 1957 and brought “parents” under the “family” definition in the Act. Gift deed among family would attract just Rs 1,000 as stamp duty irrespective of property value and flat registration fee of only Rs 500.

Links:

TOI: Property registration set to get cheaper

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Stamp duty lowered by government to 6 percent

Friday, May 22nd, 2009

You can see there a rush for registration of new flats in June as government cuts stamp duty to 6% for first-sale flats. Earlier first-sale flats continue to pay 7.5% for stamp duty on registration of new apartment. If you have already registered your apartment, you are lucky as government may give refund of difference amount.

The government which announced the reduction in stamp duty to 6% from this fiscal did not apply the same to the first sale of flats and such transactions continue to pay the earlier 7.5%. Law department has approved the amendment in Act and reduces the stamp duty to 6%. Notification can be expected by the completion of election process in states.

Links to follow:

Stamp duty lowered by government.

Stamp duty cut to 6% for first-sale flats too

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