Realtors give thumbs up to 2.4 % stamp duty cut

The state government's decision to reduce stamp duty on real estate from 8.4 per cent to 6 per cent has been welcomed by realty players.

"The end users will be much relieved by this change. This will generate more revenue for the state and people will also refrain from entering into illegal transactions," said Arun Chaturvedi, president of Federation of Real Estate Association of Gujarat.

"I wished the duty to be levied only on residential property above Rs 5 lakh or a graded increase in duty depending on the property price," he maintained.

"This is a very positive move and will bring in more transparency in the business," said Pawan Bakeri of Bakeri Group.

Jaxay Shah, president of Gujarat Institute of Housing and Development, expresed happiness on the budget move on stamp duty.

"Two years ago, the stamp duty was decreased from 10 to 8.4 per cent generating a revenue of Rs 300 crore for the state. With the current decrease, the state is likely to garner a further revenue Rs 200 crore."

Lauding the budget measures, Chairman of GCCI- Land Laws Committee Vijay Shah said, the state has not touched registration charges which remains at 1.5 per cent for males and no such charge is levied on women.

"In the past we have made various representations to the state to make our stamp duty similar to the Maharastra government," he said.

Some feel that the stamp duty should be put in lieu with Maharasthra which is comparatively more relaxed, especially in the allotment of scheme or property in the name of society.

Also there is a graded increase in duty depending on the property price for residential flats in a co-operative society and buildings covered in Article 25 (d) in Maharashtra.

High taxes have been proving a stumbling block for investors.

With this move, the state will succeed in attracting more investors, said Jaxay Shah.

"In Maharashtra, there is no stamp duty on property below Rs 1 lakh and we have made representations to the state government to initiate such a move to give a further boost to the industry," he added.