Punjab cabinet decides to reduce stam duty on property registration
The Punjab Council of Ministers (CoM) decided to lower circle rates, while reducing stamp duty on registration of property in urban areas to give an impetus to the real estate sector in the state. Chairing a CoM meeting here, Chief Minister Captain Amarinder Singh directed a formal proposal on reduction in circle/collectorate rates to be presented in the next cabinet meeting, with the DCs to be instructed to formulate the new circle rates.
Local Bodies Minister Navjot Singh Sidhu said he was already working on the proposal and will present in the next meeting for consideration.
To boost the languishing real estate sector in the state, the cabinet also gave approval to reduction in stamp duty on the registration of property in urban areas from 9 to 6 per cent till March 31, 2018.
According to a spokesperson of the Chief Minister’s Office, the cabinet, chaired by Singh, decided to remove the 3 per cent additional stamp duty chargeable as Social Security Fund for this period through an amendment to Section 3-C and schedule 1-B of the Indian Stamp Act, 1899, as announced by the finance minister in his Budget speech in the state assembly.
In another decision to propel the realty segment, the CoM also decided to grant exemption from 10 per cent increase in Change of Land Use (CLU), External Development Charges (EDC) and License Fee (LF)/Permission Fee from April 1, 2017 to March 31, 2020 for real estate projects. The cabinet also in principle agreed to lower/rationalise circle/collectorate rates, which it felt was essential to give an impetus to the real estate sector.