2% TAX IMPOSED ON VALUE OF PROPERTY, BUT WOMEN HOUSE OWNERS WILL GET TO PAY 1% LESS
Gurgaon: While property buyers across Haryana have welcomed the recent government decision to reduce the stamp duty on conveyance deeds and sale deeds from 6% to 5%, it has brought no relief to residents of Gurgaon. The district administration has imposed a new levy of 2% of the value of property to generate revenue for the recently-created Gurgaon Municipal Corporation (GMC).
Therefore, the buyer has to now pay 7% of the transaction instead of 6% earlier. On an average, Gurgaon generates daily revenue of about Rs 2 crore from stamp duty and registration fee. However, there is some relief for women buyers who have to pay one per cent less than men i.e. 6%.
According to officials of the revenue department, the better deal for women buyers is already having an impact. They pointed out that in places like Gurgaon and Faridabad, or for that matter any NCR city of Haryana, the property transactions are in crores. ''In case, a plot costs Rs 1 crore, the buyer would like to get it registered in the name of a woman since he will save at least Rs 1 lakh on account of stamp duty. So, we are witnessing a major shift in the pattern of property ownership with women becoming landlords,'' said a senior official.
Estimates suggest over 60% of properties sold recently have been bought in the name of women. So far as the reduction in stamp duty is concerned, the Haryana cabinet had approved the draft of the Indian Stamp (Haryana Amendment) Ordinance, 2008, and the rates of stamp duty on conveyance deeds and sale deeds were reduced to discourage alienation of property on general power of attorney and to raise more revenue from stamp duty.
The Government of India has launched three schemes for improvement of infrastructure in urban areas and the Centre is providing substantial assistance to the state for this purpose. One of the conditions for providing this assistance is to reduce stamp duty to 5%. The Haryana finance minister had also made this announcement in his budget presentation early this year. A senior official of the revenue department said the move is also aimed at pushing the sale of properties. ''This is also an encouragement for the buyers since due to the reduction in the stamp duty, they are going to save more, he added.
Property dealers said since there has been a slowdown in the real estate market, the government might have taken this decision to push property transactions. Areas in Gurgaon, Faridabad, Sonepat and Panipat have witnessed increased business in this sector. ''This is a positive development. But in Gurgaon, with the new municipal duty of 2%, while the state government gets only 5% of the stamp duty, buyers pay 7%. So, how much this will help government achieve its goal here remains to be seen,'' said G L Sharma, a property consultant.
District officials said earlier buyers had to pay 2% extra stamp duty in case of properties falling under the erstwhile Gurgaon Municipal Council. ''Now the additional 2% is being charged on all transactions for properties in the entire urban conglomeration, including the colonies developed by private developers and villages which have been included in the corporation,'' said a senior official.
Courtesy: - TOI dated: - 19th June 2008