Planning to buy property in Punjab? Stamp duty cut comes as relief to reeling realty sector | punjab | top | Hindustan Times
  • Friday, May 25, 2018
  •   °C  
Today in New Delhi, India
May 25, 2018-Friday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Planning to buy property in Punjab? Stamp duty cut comes as relief to reeling realty sector

The state exchequer has registered consistent decline in stamp duty collections in the wake of a slowdown in the property market. This has impacted the collections particularly from major cities like SAS Nagar, Ludhiana, Jalandhar and Amritsar.

punjab Updated: Jun 22, 2017 10:37 IST
HT Correspondent

In a move that is expected to help revive the recession-plagued real estate sector in the state, Punjab finance minister Manpreet Singh Badal, in his budget speech on Tuesday, proposed a cut of 3% in the stamp duty on the registration of property, from 9% to 6%. The duty reduction is applicable only for the current financial year and only to urban areas, though.

The state exchequer has registered consistent decline in stamp duty collections in the wake of a slowdown in the property market. This has impacted the collections particularly from major cities such as SAS Nagar, Ludhiana, Jalandhar and Amritsar.

Even after the reduction, the stamp duty in the state is higher than that in Chandigarh, where it is 5%. Neighbouring Haryana has stamp duty at 8% for urban areas now.

Welcoming the move, Anil Chopra, chairman of the Punjab chapter of CREDAI (Confederation of Real Estate Developers’ Associations of India), said, “It will also help encourage property buyers to declare the actual value of a property purchased at the time of registration. At present, in order to save on duty payment, buyers underreport the value.”