Karnataka government, in its Budget for financial year 2021-22, has reduced stamp duty on low-cost apartments from 5 per cent to 3 per cent. The stamp duty reduction will be applicable on apartments priced in the range of Rs 35 lakh to Rs 40 lakh.
The move is meant to give a leg up to affordable housing, said Karnataka Chief Minister BS Yediyurappa while presenting the Budget on Monday.
"To promote affordable housing, the stamp duty for registering apartments valued Rs 35-45 lakh is proposed to be reduced to 3 per cent from 5 per cent," the Chief Minister said.
The reduction in stamp duty comes in the backdrop of pleas from real estate players in Karnataka, especially state capital Bengaluru, to provide relief to the embattled sector so as to revive sales. The sector has been adversely impacted by the COVID-19 pandemic; dwindling sales have resulted in piling up of inventory.
The revenue target for state's stamps and registrations department for the next fiscal has been kept unchanged at Rs 12,655 crore.
"The department has collected Rs 9,014-crore from stamps and registrations till February from across the state as against the annual target of Rs 12,655 crore for this fiscal (2020-21)," said Yediyurappa.