Stamp duty collection rises by Rs 700 cr

Simplification of registration rules, property and stock market boom are fuelling the rise

The state government has collected Rs 3,200 crore as stamp duty, up by Rs 700 crore compared with the amount collected till November for the last year.

With this increase in the first eight months of the current fiscal, the state government expects to collect Rs 4,800 crore to Rs 5,000 crore compared with Rs 4,300 crore collected in 2004-2005.

Simplification of registration rules, booming property market, high volumes of trade at Bombay Stock Exchange and National Stock Exchange are cited as reasons for the rise.

"With the maximum rate for stamp duty being fixed at five per cent of the total transaction cost, people are encouraged to not undervalue their transactions," said O P Gupta, the inspector general of stamp duties and registration.

Gupta pointed out earlier people used to report their transactions only at the time of selling as they had to pay stamp duty both at the time of buying and selling.

However, with last year's amendment that stamp duty has to be paid only on the difference between price of purchase and resale, people are registering their transactions.

Government's decision to introduce anywhere document scheme has also helped in raising the amount of stamp revenue collected. Earlier, one had to register sale or purchase of his or her property only at a designated sub-registrar's office.

However, now one can register the sale, purchase, mortgage or lease of the property in any sub-registrar office.

Some sub-registrar offices, doing lot of transaction businesses, were always crowded. And people used to postpone the payment to avoid long queues. With the new system in place, it is easy for the government to realise dues, Gupta added.

The Sensex and Nifty scaling new highs, has also helped the government to collect additional stamp duty because of higher trade volumes.

Last year, the act was also amended to include contracts in the advertising and film industries.