Real estate developers in Hyderabad have urged the state government to reduce stamp duty to 2% which would provide stimulus to home buying in the city. At present stamp duty in Telangana is 4% for property registration. The proposed for the reduction of 2% cut on stamp duty would encourage the construction industry and also promote affordable housing. The rebate in the stamp duty rate can bring down the transaction cost significantly.
Government to Reduce Stamp Duty Charges
Telangana Government responded positively to the requests from the real estate builders seeking relief measures like reduction of stamp duty on flat registrations and revival of the real estate sector in the wake of the ongoing COVID-19 crisis. It assured that the government would examine their requests and ensure all support to the sector.
Stamp duty is an agreement or transaction paper between two or more parties, with the registrar. Usually, it is a fixed amount based on the nature of the document or is charged at some percentage of the contract value stated in the document. It is not uniform across states and varies for a different type of documents. For instance, in the case of property registration, stamp duty is charged on the transaction value or circle rate (minimum price of a property, as per the government), whichever is higher.
The representatives of various real estate builders poured out their grievances, seeking the State government’s support to revive the industry in the wake of the ongoing COVID-19 pandemic. They have sought several relief measures including the extension of building permission validity without any additional fee, reduction in stamp duty by 2 percent, the release of final layout plans, rationalisation of parking for IT buildings and demarcation of master plan roads, etc.
The government stamp duty reduction would encourage builders to improve property developments in this tough business environment.
By: Shailaja K