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Chandigarh residents demand scrapping of 3% extra stamp duty on property transfers done through general power of attorney
A Chandigarh administration official said that the extra stamp duty of 3% on property transfers done through general power of attorney is being charged as per provisions of the law
Residents and real estate stakeholders have demanded withdrawal of the extra stamp duty of 3% on property transfers which are done on basis of general power of attorney.
Kamal Gupta, president of Chandigarh Property Consultants Association, said, “The Chandigarh sub-registrar’s office has been charging extra stamp duty of 3% on the value mentioned in sale deeds, in addition to normal stamp duty of 5%, when they are registered on the basis of general power of attorney.”
In a letter to the district collector and the administration’s committee setup to review estate office related property matters, the association has demanded withdrawal of the additional stamp duty.
“Property owners living abroad who want to sell/buy properties depend heavily on the GPA. This practice is not prevalent in other states like neighbouring Punjab and Haryana and the administration should withdraw it,” said a prospective property seller, who didn’t want to be named.
A UT official said, “This extra stamp duty of 3% is being charged as per provisions of entry 48(f) of schedule-1 of Indian stamp Act, 1899.” The provision allows charging of extra stamp duty on GPA transfers , “when given for consideration and authorising the attorney to sell any immovable property.”
Gupta though maintained, “The said provision of the law is not attracted in the matter of general power of attorney given by property owners without any consideration. Therefore, it needs to be differentiated as to whether power of attorney has been given authorising the attorney just for sale of property without any consideration or if it has been given for consideration of money and authorising the attorney to sell immoveable property.”
“In Punjab, from where the amendment in Schedule 1 of Indian Stamp Act, 1899, was extended to Chandigarh in 2007, no such extra stamp duty is being charged,” said Gupta.
