BY erealto | 05-12-2018
Stamp duty is a tax levied by the government on any property transactions whether commercial or residential. Earlier, the stamp duty charged was 9%. But an ordinance was issued to reduce the stamp duty to 6%. This ordinance came into effect and became a law after the Indian Stamp Act 1899 (for Punjab) got amended and the Indian Stamp (Punjab Amendment) Act 2017 came into effect. Punjab government, in order to curb the misuse of stamp duty rebate ruled out a new law which will control the wrong deeds of some greedy and unethical people. In order to empower the women, Punjab government gives a rebate of 2% on the property transactions which are registered on the name of a woman. Though, the transfer of property to someone who is related by blood is absolutely free of cost, but for others, the government charges stamp duty of 6% if the property is to be transferred to a man, in the case of a woman, it is 4%. This is a unique step which has been taken by the government to empower the women and to increase their say in the matters of property. However, if the male and female are equal property owners, the rebate given is according to the proportionate share of women in the property. But this is however being misused by some immoral people, who at first transfer the property on the name of woman but then transfer it to a male member of the family. In order to curb this practice, the government takes back the rebate given, if the property is transferred from a female to male within a period of one year. This decision has been taken by the Punjab Revenue Department to restrict the malpractices going on.
BY erealto | 05-12-2018
Slash in stamp duty come as a relief to the residents of Punjab, which will give a boost to realty sector which was on the verge of going into a recession. Earlier in the urban areas, the stamp duty was 9%, whereas in the rural areas it was 6%. Now the stamp duty in both areas has been brought at par with each other as the government has brought down the stamp duty for the urban areas, which is now 6%, same as that of the rural regions. The additional 3% which was earlier charged as social security fund, has now been cut down. However, the stamp duty of the state is still higher than the neighbouring union territory of Chandigarh. In Haryana, the stamp duty for urban areas is 8%. The reduced stamp rates are applicable only to the land rates, not to the super structures. The ordinance for amendment got approval and the Indian Stamp Act 1899 (for Punjab) got amended and the Indian Stamp (Punjab Amendment) Act 2017 came into effect. This will certainly boost the realty sector and will encourage more transactions.