Bangalore: June might see a rush for the registration of new flats in the state, predominantly in Bangalore. The government will come out with a notification to reduce the stamp duty from 7.5% to 6% for first-sale transaction of flats. If those who have already registered the new flats are lucky, the government may give a refund in the difference amount.
The government which announced the reduction in stamp duty to 6% from this fiscal did not apply the same to the first sale of flats and such transactions continue to pay the earlier 7.5%.
The state government termed this “oversight’’ while amending the Act and announced that steps would be taken to bring in a fresh notification. Since the Lok Sabha election code of conduct was in force, the government promised to bring in the necessary changes after the election process was completed.
“The law department has approved the proposal to amend the Act and reduce the stamp duty to 6%. We are also considering it with retrospective effect to be made applicable from April 1. Those who have already registered new flats paying 7.5% stamp duty will get a refund in the difference amount if this recommendation is okayed. The law department will analyse whether to promulgate an ordinance or issue notification for the amendment. By June, the revised rates will come into effect,’’ inspector general of stamps and registration department KR Niranjan said.
The chief minister in the 2009-10 budget announced reduction in stamp duty from 7.5% to 6% payable during registration of immovable properties, to boost to the realty sector.
What it requires
Amend Article 20, clauses 2 and 3 of Karnataka Stamp Act 1957 to bring about uniform 6% stamp duty rates for first-time registration of new flats.
What was done earlier
Notification had amended Article 20, clause 1, which talks about sale of any immovable property excluding flats for which 7.5% has been brought down to 6%.
