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The government of Karnataka has planned to come up with an amendment bill that would materialize its decision to cut down the stamp duty to 3% from the existing rate of 5%. This would be applicable for the apartments that come in the range between INR 35 lakhs and INR 45 lakhs. This deduction in stamp duty was mentioned even in the past.
The Parliamentary Affairs Department officials stated that the Karnataka State Stamps (Amendment) Bill of 2021 has been prepared. This Bill is set to be tabled in the council and the legislative assembly in the monsoon session. On September 13, this session is set to commence. This is one of the four to five new bills that would be introduced. Officials stated that the procedural steps to introduce these bills have been accomplished. Therefore, they would be tabled in the first part of the monsoon session.
The amendment of the reduction was cleared by the cabinet last month. The chief minister of the state had requested the officials so that they would prioritize the bill in the House. It was during the announcement of Budget 2021-22 that the proposal was initiated. This would significantly support the segment of affordable houses. Incidentally, it should be noted that the stamp duty was slashed in the last year to 2% from 5%. This was meant for first-time apartment registrations where the value was less than INR 20 lakhs.
Since the proposal was not materialized in the past, the government had come under criticism. The registration of new properties got postponed in large numbers, as homeowners waited for the government to notify the new structure of the duty. Over 3,500 people willing to purchase properties were sent back from as many as 252 sub-registrar offices between April and July since they demanded the duty to be reduced. Just 200 units were processed, where the buyers shelled out a duty of 5%. However, this new move would foster the growth of the real estate sector. Once the stamp duty is reduced, more homeowners would feel encouraged to proceed with purchase of the homes that they had been forced to put on hold till now.
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