Stamp duty on property to go down in Delhi

Delhiites can look forward to some relief from the stamp duty levied on registration, sale or transfer of property.

The Union Urban Development Ministry has recently written to the state government prodding it to lower the stamp duty in the Capital.

The ministry's letter, on which it wants the state's response vis-a-vis the action taken, compares the rate of stamp duty in Delhi to the rates in other states (which are lower).

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The existing rate of stamp and transfer duty in Delhi is 4 per cent for women and 6 per cent for men. The existing registration fee is 1 per cent of the total sale deed (plus Rs.100). According to state government officials, the existing duties on sale/ transfer by registration have already been lowered considerably in the recent past.

"This decrease has seen an increase in the overall number of property registered and our revenues have surged. But there are many who still feel that only a small fraction of the total property transactions are brought on record and this needs to be decreased further to ensure close to 100 per cent registration," a senior state government official said.

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According to the last estimate made public by the state government in February, the net collections from stamp duty and registration of property in the Capital had seen an over 50 per cent increase between April 2010 and January 2011.

One of the recommendations cited in the letter says: "The government should consider reducing the stamp duty so as to encourage sale/ transfer by registration".

Courtesy: Mail Today