State won't levy stamp duty on property given for redevelopment

The Department of Registration and Stamps will  soon be issuing a circular, stating that owners who hand
over their properties to builders for redevelopment will no longer be required to pay stamp duty for striking such deals.

Dr Shrikar Pardeshi, inspector general of Registrations and Controller of Stamps (Pune), said that the state used to levy 5 per cent stamp duty on owners giving their properties for redevelopment.

“On March 19, 2014, the Bombay High Court issued directives in the case of Prabha Ghate vs stamp collector that henceforth property owners who have given their properties for redevelopment, should not pay stamp duty on their renovated property,” Pardeshi said.

Conditions apply
He said the court further stated that the developer could charge stamp duty on those properties that would be sold to new buyers, besides the original owner of the property. “The state government will have to bear a monthly loss of around R40 crore due to the abolition of the 5 per cent  stamp duty,” Pardeshi added. 

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