The Delhi Government, on Friday announced a cut in stamp duty on property prices by 2%. The move has been decided to access funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) as the programs need states not to exceed the stamp duty than 5%.
The stamp duty on properties registered in the name of men will now stand at 6% whereas it would be 4% for women.
This will pave the way for considerable savings for an individual buying property. With respect to new stamp duty, he/she will now be able to saves at least Rs 60,000 for a property worth Rs 30 lakh. Likewise, the savings will go on increasing with the increase in property price. It would be to the tune of Rs 1 lakh for one that is worth Rs 50 lakh and Rs 2 lakh for a property worth Rs 1 crore.
The first installment including Rs 298 crore from the JNNURM funds has been allocated to Delhi by the Union Urban Development Ministry.
The cut in stamp duty is not likely to affect the entire revenue collection. For that reason, the government on Thursday night issued a notification for circle rates in the Capital. The circle rates will, however, help avert the treachery and wrong practices in property deals and register their properties at a higher amount.
The government is considering doubling its collections from stamp duty in 2007.
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