Punjab govt delays notifying 3% reduction in stamp duty

Punjab govt delays notifying 3% reduction in stamp duty

Catch-22 situation for property dealers in Mohali

Nabaz-e-Punjab Bureau, Mohali, July 22:
The delay by Punjab government to notify the reduction of stamp duty on urban properties by 3% has left the property dealers of Mohali in catch-22 situation. Dealers claim that the property deals have come to a sudden halt. The buyers and sellers have been stranded midway in getting deals finalized and getting the property registered with the government.
Explaining the lurch in which the dealers have found themselves, former president of property dealers association in Mohali, Shailender Anand said while citing an example that if a person buys property worth Rs 1 crore then he is liable to pay stamp duty of 9% which computes to Rs 9 lakh. And if the same is now announced to be reduced by 3%, then for the same property one can save Rs 3 lakh which is a substantial amount. Secondly, the buyer with his 3% benefit can use up the same as installment for the property.
In Mohali, if a property is to be registered in the name of a male then the stamp duty payable is that of 9% and the same becomes 7% if the property is to be registered in the name of a female. If the property has been jointly registered in the name of male and female then the stamp duty payable is 8%. After the new notification all the components will see a reduction of 3% giving much respite to the buyers.
Anand said, “State government had got approved a proposal in the last session of state assembly to reduce the stamp duty on urban properties by 3 %. Consequent upon the approval by the State Assembly, a notification for the purpose was to be issued by the state government in revenue department for the implementation of the decision. However, it is more than one month the notification has not been issued till date resulting in uncertainty in the real estate market which is already facing a big slump.”
The buyers in the market are waiting for the revised notification to buy any property in the market so that they may not have to pay at the existing rates, he said. This has created utter confusion among the buyers and real estate market.
To clear this air regard to the above, the state government should issue revised notification as per the decision taken by the State Assembly, demanded the property dealers of Mohali. In case the above is not possible, the state government should clarify the matter or withdrawn the decision taken so that confusion prevailing in the real estate market is eased out.

BOX: Approximate cost of property
At present in Mohali, a 1BHK flat costs between 15 lakh to 35 lakh whereas a 4BHK escalates to Rs 1 crore to 2 crore. Similarly a kanal plot costs from Rs 1crore to 3.5 crore depending upon the area of the city. One has to pay stamp duty to get the property registered with the government. Buyers who have got the property financed have also been affected as the financial institute will not release the payment unless the registration papers of the property are not submitted with the institute.

BOX : Stamp Duty in Mohali
In Mohali, if a property is to be registered in the name of a male then the stamp duty is of 9% and if in the name of a female then the stamp duty is 7%. If the property is jointly in the name of male and female then the stamp duty payable is 8%. After the new notification all the components will see a reduction of 3% giving much respite to the buyers.