Cabinet okays stamp duty reduction

NEW DELHI: Delhi Cabinet on Monday approved reduction in payment of stamp duty from eight per cent to six per cent for registration of properties in the city.

After the Cabinet meeting held here, Chief Minsiter Sheila Dikshit told reporters that Delhi Government and MCD will have equal share in the earnings through stamp duty which has been reduced by two per cent for registration of properties in the capital.

This decision which would soon come into force is expected to bring more transparency in transactions, boost property sales and slash under-valuation of property on paper.

In case the property is owned by women, the transfer duty will be four pc to be shared in equal ratio by MCD and the state government.

So far, of eight per cent stamp duty paid by the men on the property they purchase, the state government has been collecting five per cent stamp duty while three per cent transfer duty went to the MCD.

In case the property is registered in the name of women, three per cent was paid to MCD while two per cent was retained by the Delhi Government.

Now, the proposal will be forwarded to the Home Ministry follwing which it will be notified by Delhi Leiutenant Governor before it comes into effect, an official said.

The official added the move was at the direction of the Urban Ministry which has asked the city government and MCD to reduce stamp duty as per provisions in Jawaharlal Nehru National Urban Renewable Mission (JNNURM).