Govt offers amnesty scheme to boost realty

Jayant Patil''s budget this year may boost property transactions in the state. The Maharashtra government on Thursday announced plans to ''rationalise'' stamp duty and registration fees.
A concession up to 2% at various slabs has been proposed to promote the housing industry.
The government is expected to bring in an amnesty scheme for those who have not registered and paid stamp duty. The amnesty scheme is likely to be introduced in a month''s time. A formal ''commission'' for informers who help the authorities detect evasion of stamp duty and registration has been recommended.
The government has proposed reduction in stamp duty on commercial property transactions by 1% from the current level of 10%. This is expected to give a shot in the arm to the flagging commercial property market.
On the other hand, registration fees for transaction documents have been hiked from Rs 20,000 to Rs 30,000.
"This is a setback for encouraging registration and stamp duty payment, but the amnesty scheme is a positive move," Vinod Sampat, president of the Registration and Stamp Duty Payees'' Association, told ET.
The Maharashtra government, in its budget has also announced that it will be opening 93 new sub-registrar''s offices in the state to simplify registration of documents and payment of stamp duty. It has also reduced the maximum stamp duty on bank loans from Rs 10 lakh to Rs 5 lakh.
The government has indicated its intent to levy stamp duty on TDR transactions in the property market, but the rates have not yet been specified. It has also clarified that title deeds and simple mortgage documents would have to be compulsorily registered.
This move is expected to bring in substantial revenue to a cash-strapped government. The upper limit for stamp duty on mortgage documents is proposed to be reduced from Rs 10 lakh to Rs 5 lakh.