Changes in Stamp Duty Rates
On Monday, the State Legislative Assembly approved an amendment to the Revenue Stamps Act of 1957. This significant reduction lowers the stamp duty on apartments valued from Rs 35 to 45 lakhs to 3%. However, the 2% discount is applicable only to the first registration, effectively benefiting first-time buyers.
Statement by Revenue Minister
- Ashoka, the Revenue Minister, stated that hundreds of thousands of apartments in Bangalore and other cities remain unsold due to the challenges posed by the Covid-19 pandemic. By reducing the stamp duty, the government aims to aid both the real estate sector, which is grappling with large holdings, and families from low-income groups.
Background of the Bill
The bill aligns with the announcement made by B.S. Yediyurappa during his budget presentation as Chief Minister in March this year.
Previous Adjustments
Last December, the government amended the law to introduce a 3% exemption on apartments valued between Rs 20 lakhs and 35 lakhs. In its budget last year, Yediyurappa significantly reduced the stamp duty on new apartments priced below Rs 20 lakhs to 2%.
Requests from Opposition
M.B. Patil, a Senior member from Congress, requested that the government make more concessions similar to those in Maharashtra, lowering stamp duties regardless of price. Additionally, members of Congress DK Shivakumar and Ramesh Kumar, along with JD (S) member SR Mahesh, urged the government to assist people in constructing houses on their plots within this budget.
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