BANGALORE: This is good news for real estate developers and landowners. The budget has proposed a uniform stamp duty of 2% on joint development projects, bringing down land registration cost.
Due to an anomaly in the previous stamp duty rate on joint developments, developers and land owners had to fork out a 6% stamp duty charge on the value of their respective land share in a development.
This anomaly, which the industry has been asking the government to change, put on hold many joint developments. Some developers and landowners even looked at alternative methods of development to circumvent paying the stamp duty charge.
“The revised stamp duty rate is excellent news and will definitely benefit the real estate industry,” said SV Naresh Kumar, CMD, Fortuna Projects.
Overall, the budget didn’t alter existing stamp and registration duty on flats and land, given the recent hike in guidance value that the government had announced. “With input costs of construction increasing, leaving stamp and registration duties unchanged is a welcome move,” said Prashanth Sambargi, partner, Mars Realty.
The CM is looking to mop up Rs 7,450 crore as revenues from stamp and registration duty on properties in the next fiscal, a growth of 15% over Rs 6,500 crore collected in the year ago period.