The Hindu : New Delhi News : Stamp duty rates to go down

Online edition of India's National Newspaper
Wednesday, Sep 19, 2007
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New Delhi

New Delhi

Stamp duty rates to go down

Staff Reporter

Delhi will qualify for further grants from the Urban Reforms Incentive Fund

Rates to be reduced to a maximum of 5 per cent
Will reduce use of black money in property deals

NEW DELHI: The Indian Stamp (Delhi Amendment) Bill, 2007, proposing a reduction in stamp duty was passed by the Delhi Assembly on Tuesday. With this, the stamp duty rates in Delhi are all set to be reduced to a maximum of 5 per cent.

While introducing the Bill, Delhi Finance Minister A.K. Walia said the Union Government had recommended urban reforms under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and in its memorandum of agreement it had laid down that the State would undertake to revise stamp duty rates so as to reach the level of not more than 5 per cent.

Since JNNURM has prescribed a rate of not more than 5 per cent as a pre-requisite for grants by the Centre to the States, the passage of the Bill has paved the way for Delhi to qualify for further grants from the Urban Reforms Incentive Fund.

More revenue collection

Also, it was pointed out that the lower rate of stamp duty would reduce use of black money for property transactions, facilitate bona fide transactions and increase potential for larger revenue collection. Further, it is anticipated that any revenue loss due to rate reduction will be offset by the introduction of circle rates and better compliance.

During the discussion on the subject, some MLAs also urged the Delhi Government not to impose circle rates on villages and in unauthorised colonies stating that these rates were very high and because of them the plots that would have ideally sold for about Rs. 2,000 per square yard were being sold for nearly three times the amount and this was affecting buyers with limited resources.

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