Slash stamp duty to clean up real estate sector: Assocham
To further intensify the crackdown on black money, Assocham has suggested the Centre to impress upon states to “drastically” lower stamp duty on residential and commercial property deals to dissuade people from undervaluing purchases. Body said that the biggest beneficiary of the move would be buyers of residential or commercial properties.
“One of the biggest reasons for the cash forming 30-40 per cent of the real estate transactions is the high level of stamp duty. With 6-7 stamp duty, purchaser of a flat worth Rs 1-1.50 crore will have to shell out different government levies and other charges like Likewise, the registration value also determines the capital gains tax for the sellers.
With both these levies accounting for significant account, there is a big incentive for the buyers and sellers to show the registration amount as much lower than the real transaction value,” chamber said.