Residents’ group demands relaxation in stamp and registration fee

A residents’ welfare group on Sunday protested in Greater Noida demanding rebate in house registration fee and stamp duty.

A residents’ welfare group on Sunday protested in Greater Noida demanding rebate in house registration fee and stamp duty.

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Urging the state government to take cue from the state governments of Maharashtra and Karnataka, Noida extension flat owners welfare association (Nefowa) also sent a letter the chief minister’s office, real estate regulatory authority and to the Greater Noida development authority demanding that the duty be reduced from 5 percent of the property cost to 2 percent.

The demonstrators stated that while the government has given relaxation to the builders, the buyers are also facing financial crunch in form of salary cuts or job and business losses in the wake of Covid-19.

“While the central government had provided moratorium to the real estate, there should be some rebate for the flat or home buyers. A number of residents have suffered financially due to the Covid-19 pandemic, it doesn’t justify to charge such high registration and stamp duty from them at such point of time. We have thus demanded the state government to consider relaxation in registration fee,” said Abhishek Kumar, who held a demonstration on Sunday at Charmurti circle in Greater Noida.

The registration of property and stamp duty is a major source of income for the state government.

“The revenue collection is almost back on track for the district and October saw a collection of approximately ₹130 crore. There are several facets involved in the registration fee which depends on the value estimate of the house or flat. Current rate is 5 per cent of the values estimated of the residential property, a stamp duty of Rs 50,000 would be additional,” said Pradeep Asthana, senior registrar, GB Nagar, adding that the stamp and registration duty for a typical 1300 sq ft flat in Noida would cost around ₹3 lakh.

Officials said that the department, on average, earns a revenue of ₹150 crore per month.

“It’s cruel to charge such a high duty from a person who is already suffering financial crunch. Over the period of next one year several thousands of families will be getting possession, if the duty is relaxed then it will be a great help,” said Rahul Garg, member, Nefowa.