Stamp duty cut to 6% for first-sale flats too
This June might see a rush for the registration of new flats in the state, predominantly in Bangalore. The government will come out with a notification to reduce the stamp duty from 7.5% to 6% for first-sale transaction of flats. If those who have already registered the new flats are lucky, the government may give a refund in the 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%.
The state government termed this “oversight’’ while amending the Act and announced that steps would be taken to bring in a fresh notification. Since the Lok Sabha election code of conduct was in force, the government promised to bring in the necessary changes after the election process was completed.
Source: TIMES NEWS NETWORK
What is Stamp duty?
Stamp duty India is a tax, much like the sales tax and income tax that are collected by the Government. All such taxes must be paid in full and on time. If you make delay in the payment then you have to face the penalty. Penalty involves fine or even imprisonment. If you want to produce any instrument or document in the court, it needs to be done on the stamp paper only then it is considered valid and can be used as an evident. The court cannot admit instruments or documents that are not properly stamped as evidence.
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Well, it is welcome announcement from the Govt. and I am sure it will give some relief to those who have registered new apartments in the current fiscal . Will the benefit of lowered Stampduty be extended to those who have registered in the previous fiscal, 2008- ‘09 , as well ? It will be a great relief to them as the purchases were made when the real estate price peaked during the period, and the stampduty paid on bloated value of sale /registration .
Being in abroad I was informed by the builder that effective from April 1st, 2009 that stamp duty is going to reduce from 7.5% to 6%, based on that I arranged my trip to India and make the registration as per the schedule April 21st. Unfortunately Just few days before the registration I was said again this opportunity would not be applicable to the first time buyer. I had no choice for waiting and made registration on the scheduled date. Now last week I noticed about the reduction of stamp duty and hoping to get the refund. Would Commonfloor give some suggestion to proceed further. Thanks, Shyamoli Kundu
Dear Me. Shyamoli,
Yes, you can get your money back (difference Amount) from the Revenue Dept, If there is any further clarifications please feel free to call us for the further Assitance
Thanking you,
Regards,
Nagendra AS
Advocate
9164001353
It is a disaster that the government is cheating public by reducing stamp duty on sale deed and imposing duty on sale and construction agreements which is almost double the money they save on stamp duty on sale deeds and added to it, it is payable even on resale before sale. Beware of this government. Let this be circulated among the customers.
[...] Real estate business is one of the booming industries which offer long-term investment opportunity. Right builder helps you to get your dream property or home easy. Nowadays banks and financial institutes come up with innovative offers that best suits property buyers. Government is also helping property buyers with cut down in stamp duty and registration charges. [...]
[...] 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. [...]
as per newspaper reports, can we pay property tax online now. how do we go about
Sir,
The Stamp duty is at 6% for First sale flats. What about the Second and subsequent sale flats. Is it at the same rate or higher. In 2002 I registered my flat at 14 % stamp duty, and was told that the rates are higher for Resale flats. Has this rule changed .
jagan
I have registered my new apartment during first week of april at the normal stam duty rate in Bangalore. Now i came to know that the rates has been slashed to 6%. Will i get an refund of the difference amount. How to approach this. Can anyone help me.
Thanks in advance.
Sathish
Deal for purchse of property was cancelled for some reasons. Stamp duty paid on the documents made for captioned deal remained un-utilsed. Hence application for refund of stamp duty have been made to the collecor of stamp Mumbai on 17th Feb. 2007. Department have sought some clarifications etc., which was promptly submitted. Except falls promises from the concern officer to release the refund order, nothing has been materialised. I donot want pay bribe to anyone. I need proper advise to expedite the matter as well as to recover the interest on delayed payment. CAN you help me?
I am planning to register my apartment property at Sterling terraces phase two, bangalore but the builder office informed me that, I have to pay 10% as registration fees. I spoke to the registratar office, they infomred me that its 7.5% plus 1% as registration fees…I am confused as to know which is the exact rates for registration.
regards
Sridhar
@Sridhar,
Hope you already registered it! The rates are low now - 6% stamp duty and 1% registration charges (plus a minimal cess and tax there in)