HYDERABAD:The state government on November 27 reduced stamp duty on major transactions including sale of land. According to sources, the move was forced by the Centre which is providing huge funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.
According to the new slabs, stamp duty on sale registration, sale agreement and exchange of property was reduced from 5 per cent to 4 per cent. Stamp duty on sale agreement and GPA was reduced to 5 per cent from the existing 6 per cent.
In a major boost to real estate, stamp duty on construction/development agreement was reduced to 0.5 per cent from 5 per cent. Duty on mortgage and possession of property was reduced to 2 per cent from 5 per cent. However, the duty on Development agreement cum GPA will remain as 1 per cent.
Settlement in favour of family members will attract 1 per cent duty from the existing 3 per cent while settlement with those other than family members will attract 2 per cent. Similarly, all gift registrations between family members under section 56(2) of Income tax Act of 1961 will attract 1 per cent and in other cases 4 per cent stamp duty.
Stamp duty on lease deeds for less than one year will be 0.4 per cent of the total lease amount.
For partition deeds, stamp duty was brought down to 1 per cent and in case the transaction is between family members, it was slashed to 0.5 per cent.