Haryana Imposes 2% Additional Duty on Transfer of Properties

Barely a few days before the state’s Budget is to be presented in the ongoing Vidhan Sabha’s Budget Session, Haryana Urban Local Bodies Department has imposed a two per cent duty on transfer of immovable properties located within the limits of Municipal Corporations a

BY Realty Plus
Published - Friday, 12 Mar, 2021

Haryana Imposes 2% Additional Duty on Transfer of Properties

Barely a few days before the state’s Budget is to be presented in the ongoing Vidhan Sabha’s Budget Session, Haryana Urban Local Bodies Department has imposed a two per cent duty on transfer of immovable properties located within the limits of Municipal Corporations across Haryana. Chief Minister Manohar Lal Khattar, who also holds the Finance portfolio, will be presenting state’s Budget on March 12. Imposing the duty would increase the price paid by the people during transfer of immovable properties. The fresh two per cent duty shall be imposed in addition to charges already applicable in such transfer of properties. The notifications were issued by Additional Chief Secretary (Urban Local Bodies) S N Roy. The duty so paid shall be paid equally into the account of respective Municipal Corporation maintained and managed by the respective Commissioner of Municipal Corporation and the consolidated account for all the Municipal Corporations in Haryana maintained and managed by the Director, Urban Local Bodies Department for this purpose. Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development commented, “It is detrimental to the overall health of the real estate industry as certain states reduce stamp duties. Though the move will increase interest in the primary market, the secondary market is also critical to real estate development. Many people purchase properties as an investment tool, but with the extra duty, the cost will rise, potentially reducing people's interest in the secondary market.” Akshay Taneja, MD, TDI Infratech said, “The recent announcement of additional taxes on the sale of immovable property by the Haryana Government, on the other hand, would hurt sales growth as it will increase the cost of the property. The developers have been demanding measures that will boost the sector, but this decision is a shocker. With the latest imposition of additional taxes, Haryana's markets would crash due to the additional financial burden being placed on buyers. Haryana should take inspiration from the decisions made by other states such as Karnataka and Maharashtra, which are easing the pressure on buyers to ensure the sector's growth. The sector is already facing multiple problems and expecting favorable policies, but this Haryana Government decision will be a setback.” Mohit Goel, CEO, Omaxe Ltd, added, “The 2% additional duty on the transfer of immovable properties in Haryana over and above the stamp duty will raise the cost of home ownership in the State and bring a halt to the festive season momentum in the housing market. However, with more funds available to the municipal bodies, this move will help in the creation of better infrastructure for an enhanced livability for the people of the state.”