Central Government to Remove Stamp Duty, a Relief to Home Buyers
The Central Government is giving a huge relief to the home buyers. After the loan subsidy on the purchase of affordable houses, stamp duty can now be completely eliminated. In this regard, Union Urban Development Minister Venkaiah Naidu has written a letter to all the State Governments to eliminate Stamp Duty.
The collection of stamp duty on the sale of houses, land and other properties is the subject of the states. A lot of states charge it from 4% to 12%. Union Minister Venkaiah Naidu said in the meeting of CREDAI (Confederation of Real Estate Developers’ AssociationSs of India) here that the center will ensure that there is no increase of tax in the housing sector, especially in the field of Affordable Housing after the implementation of GST. Venkaiah Naidu said that enclosure of the real estate sector in GST would greatly help the entire industry.
What do we mean by Stamp Duty?
Stamp duty is a tax, like income tax, gathered by the government. Stamp duty is payable under Section 3 of the Indian Stamp Act, 1899. If there is a deferral of payment of stamp duty, it holds a penalty. A stamp duty paid instrument/document is considered a proper and legal instrument/document and has evidentiary value and is admitted as evidence in courts. Document not properly stamped is not admitted as evidence by the court.
About the penalty
Any deferral in duty payment will pull in 2% per month to the maximum of 200% of the debt amount of stamp duty. Stamp papers are to be purchased in the name of either of the parties, i.e., seller or buyer involved in the agreement. On the failure of the same; will disable the stamp paper. It is said to be valid for six months from the date of purchase, only if the duty is paid on time.
Exemption from Service Tax
Reasonable housing is relieved from service tax. It is 5.35 % of the sale price. Naidu told that he has asked the finance ministry to continue the discount in GST too.
Venkaiah Naidu said that because the state is not ready to include it in GST. Therefore, in this case, only through discussions can be carried forward.
Benefits in the Major Cities
1. Jaipur – Stamp Duty – 06%
|1.||EWS||10 lacs||60 thousand|
|2.||LIG||15 lacs||90 thousand|
|3.||MIG||20 lacs||12 lacs|
2. .Raipur – Stamp Duty – 05%
|1.||EWS||4.89 lacs||15 lacs|
|2.||LIG||7.33 lacs||2 lacs|
3. Bhopal – Stamp Duty – 9.3%
|1.||EWS||7.3 lacs||63.6 thousand|
|2.||LIG||13.96 lacs||1.26 lacs|
|3.||MIG||22 lacs||1.99 lacs|
EWS stands for Economically Weaker Section
LIG stands for Lower Income Group
MIG stands for Middle Income group