As the Gujarat government gets ready to implement revised jantri rates from April 15, it is actively considering a proposal to reduce stamp duty and registration fee on purchase of properties. A finance bill listing out revised stamp duty and registration fee rates is expected to be introduced in the budget session of the Gujarat assembly, which begins later this month.
Reduction in stamp duty and registration fee has been a long-standing demand of the real estate sector, which has made several representations to the government over this concession. At present, property registration attracts a stamp duty of 4.9 percent and a registration fee of 1 percent. Female buyers are exempt from the 1 percent registration fee.
A reduction in stamp duty and registration fee will counterbalance the negative impact that increased jantri rates will have on the real estate sector in terms of the number of property registrations.
The real estate sector has been demanding a marked reduction of stamp duty from 4.9 percent to 1 percent in the affordable housing segment in the first allotment from the developer to the buyer.
Government revenue from stamp duty and registration fee recorded a healthy 19 percent rise in 2022 as compared to the previous year. The number of properties registered in 2022 in the state stood at 15,97,188, 11% higher than 14,29,607 properties that were registered in the state in the preceding calendar year. Government revenue from stamp duty and property registration also shot up from 7,337.9 crore in 2021 to 8,769 crore in 2022.
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