Miscellaneous

STAMP DUTY ON URBAN PROPERTY REDUCES FROM 9% TO 6% IN PUNJAB

Courtesy — Hindustan Times.

The Hush Post:  The stamp duty on the urban property has been reduced from 9 per cent to 6 per cent by the Punjab government. After the necessary formalities of converting the ordinance into Act and the passing of bill by the Punjab Vidhan Sabha, finally The Indian Stamp Act 1899 (for Punjab) has been amended and The Indian Stamp (Punjab Amendment) Act, 2017 has been notified whereby reduction in stamp duty on urban property from 9 per cent to 6 per cent has come into effect. This was informed by Vinni Mahajan, Financial Commissioner Revenue, Punjab. She informed that the stamp duty @ 5 per cent and additional stamp duty @ 1 per cent is levied on the sale/transfer of immovable property, under the Indian Stamp Act, 1899 (for Punjab) and the annexed schedule thereto. However, for the urban areas, Social Security Fund @ 3 per cent is also charged. Hence the total stamp duty charges in urban areas are 9 per cent whereas in rural areas they are 6 per cent.

In order to give some relief to the buyers of the property in urban areas, State Government had announced in the budget session that the stamp duty on the registration of the property shall be reduced from 9 per cent to 6 per cent. Accordingly, it was decided that the additional stamp duty being levied as Social Security Fund @ 3 per cent in the urban areas may be exempted up to 31.03.2019. The reduction in stamp duty is expected to provide an impetus to the real estate market in the State. This act shall be deemed to have come into effect from August 28, 2017 and shall cease to operate with effect from April 1, 2019.

 

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