Rajasthan Government Extends Stamp Duty Relaxation

Considering the demands of developers, the state government has decided to extend relaxation on stamp duty for three months till September. Though the Confederation of Real Estate Developers’ Associations of India (CREDAI) had written to the finance department to exte

BY Realty Plus
Published - Thursday, 08 Jul, 2021

Rajasthan Government Extends Stamp Duty Relaxation

Considering the demands of developers, the state government has decided to extend relaxation on stamp duty for three months till September. Though the Confederation of Real Estate Developers’ Associations of India (CREDAI) had written to the finance department to extend relaxation on stamp duty till March 2022, the department provided relief till September. During the budget, the state government announced to reduce stamp duty on housing units in multi-storey buildings from 6% to 4% until June 30, 2021. The benefits were provided to buyers purchasing flat worth up to Rs 50 lakh. As the real estate industry failed to reap the benefit of relaxation after strict guidelines were imposed during the second wave, the developers demanded the extension. Rajasthan CREDAI chairman Gopal Prasad Gupta said, “To support the developers, the state government should adopt an approach like Maharashtra, where stamp duty relief is provided to all plots. The window is too small and people will not take benefit of this extension.” After the first lockdown, both consumers and real estate industry faced a setback as stamp duty was increased to 6% from 5%. Also, with 1% registration fee and 30% other taxes, the total stamp duty had gone up to 8.8%. Though the relaxations were announced in February, restrictions imposed during the second wave put a spoke in real estate industry’s wheel. “Not many could crack the deal due to the second wave. Many consumers who planned buy a flat up to Rs 50 lakh shelved their plans ,” said Ankur Sharma, a developer. On the demand of CREDAI, the Rajasthan Real Estate Regulatory Authority (RERA) had also given one month extension to developers to submit quarterly progress reports (QRPS) of their registered projects. In the last orders, the authority mentioned that the last date for submission of QRPs for all the earlier quarters and also for the quarters ending on March 31, 2021 had been extended to June 30, 2021 without any delay processing charges or penalty. This has now extended to July 31, 2021.