Punjab Government on Tuesday notified its decision to reduce the stamp duty on urban property by three percent — that is from nine to six percent.
The notification was issued after completing the necessary formalities to convert the ordinance into Act and the passing of the bill by the Punjab Vidhan Sabha.
The Indian Stamp Act, 1899, (for Punjab) has been amended and ‘The Indian Stamp (Punjab Amendment) Act, 2017’ has been notified whereby reduction in stamp duty on urban property from nine to six percent has come into effect, said the state Financial Commissioner (Revenue) Vinni Mahajan on Tuesday.
Mahajan said that the Stamp Duty at the rate of five percent and additional stamp duty at the rate of one percent is levied on the sale or transfer of immovable property, under the Indian Stamp Act, 1899 (for Punjab) and the annexed schedule thereto.
However, for the urban areas, three percent Social Security Fund is also charged, making the total stamp duty charges in urban areas nine percent whereas in rural areas they are six percent, she said.
“To give some relief to the buyers of the property in urban areas, the State Government had announced in the budget session that the stamp duty on the registration of the property shall be reduced from nine to six percent. Accordingly, it was decided that the additional stamp duty being levied as Social Security Fund in the urban areas may be exempted up to March 31, 2019,” she said.
Mahajan added that the reduction in stamp duty is expected to provide an impetus to the real estate market in the State.
She clarified that the Act shall be deemed to have come into force with effect from August 28, 2017, and shall cease to operate with effect from April 1, 2019.