Karnataka Govt Stamp Duty Cut for Properties Up To ?45 Lakh
To provide a boost to the real estate sector, the Karnataka government approved the stamp duty cut in a cabinet meeting. The stamp duty for properties worth up to ?45 lakh has been cut from 5% to 3%. This move will result in cost saving for the homebuyers. A cut in stamp duty reduces a homebuyer's cost and is therefore considered positive for the real estate sector, which has been struggling for the past few years. Stamp duty is the fee paid at the time of the registration of the property and varies from state to state. For example, if the stamp duty is 5% on a property of ?30 lakh, a 2% cut will save the homebuyer ?80,000. In the past it was seen that stamp duty cuts have helped in clearing the inventory of the sector. The Maharashtra government temporarily slashed its stamp duty. Certain markets such as Mumbai registered record numbers of sales supported by low interest rates, attractive discounts from developers as well as people’s inclination to buy their own house amid the pandemic. However, some experts feel that the stamp duty cut should have been across the price categories as was done by the Maharashtra government. Limiting it to properties worth up to ?45 lakh may not lead to desired results.
Tags : News/Views Stamp Duty properties Karnataka government cut