NEW DELHI: In a significant development that could make purchase of property in the Capital a much cheaper affair, the Delhi Government, buoyed by the success of the low stamp duty regime, is actively considering a proposal for further reduction in stamp duty for both women and men categories. It is proposed to reduce stamp duty from 6 per cent to 3 per cent for women and from 8 per cent to 5 per cent for men.

Highly placed sources informed that in view of the proposed reduction in stamp duty levy, the Delhi Cabinet on Tuesday deferred a decision on the application of the new circle rates for assessment and registration of property in the Capital, a step aimed at curbing the illegal transactions. Instead, the Cabinet decided to form a sub-committee headed by Finance Minister A.K. Walia, Development Minister Raj Kumar Chauhan, Chief Secretary R. Narayanswami and Divisional Commissioner Narender Kumar to have a close look at the stamp duty rates and submit a report to the Cabinet within a week. The decision to form a committee was taken at a Cabinet meeting chaired by Chief Minister Sheila Dikshit.

Sources informed that the Delhi Government had been encouraged to further reform the stamp duty process in view of the positive response it got in the form of additional revenue generated after reduction of stamp duty to 6 per cent for women and 8 per cent for other categories.

It is understood that there was a view within the Cabinet that with the implementation of minimum circle rates for those buying property in Delhi for the first time, the imposition of 6 and 8 per cent stamp duty would make transactions a bit expensive.

In order to provide relief to various sections, it was decided to have a re-look at the stamp duty rates and that is the reason a sub-committee had been formed to study the entire scenario, as it would require an amendment in the Stamp Duty Act for reducing the rates.

Similarly, it was felt that as adjoining cities of Noida and Ghaziabad have high circle rates, Delhi should follow suit and put an end to high undervaluing of property.

At present, in Delhi if a person is buying property for Rs. 50 lakhs, the registration is hardly around Rs. 6 to 8 lakhs and rest of the transaction takes place in black money.

This had led to heavy evasion of stamp duty and revenue loss to the Delhi Government forcing it to sit up and have a look at the whole situation in a rational manner.

"If the new circle rates are to be implemented then there has to be reduction in stamp duty. There has to be some kind of relief for the people and that is the reason why there is proposal to reduce stamp duty,'' a senior Minister remarked.

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