Published On: Thu, May 18th, 2017

Immerse Boosting of Duty :Property Gift Deeds in Maharashtra

OLN

By Accommodation Times Bureau

 

If a person is  having a flat in Mumbai, where the ready reckoner rate (official rate fixed by government) for land is Rs 81,000 per sq m. If he wants  to transfer it to his spouse, sibling or child, stamp duty would be mere Rs 200-500, depending on the nature of the plot. On May 16, however, the state cabinet decided , on a steep hike in duty on such gift deeds. The decision , aimed at boosting revenue, will result in government charging 3% of ready reckoner rate as stamp duty if a flat is gifted to a blood relative or a spouse.

The move to amend the Maharashtra Stamp Duty Act will impact on both gift deeds and conveyance deeds (which establish the transfer of a property in the name of another person). By approving it, the cabinet has revolutionalized the decision by former revenue minister Eknath Khadse, who had ceased the stamp duty on gift deeds.Before Khadse’s terms of office , the government was charging 2% of the land value on gift deeds.

The relevant amendment in section 34 of the stamp duty Act is expected to fetch up to an additional Rs 200 crore in revenue. An amendment will also be carried out in section 25 to increase duty on conveyance deeds in rural and peri-urban areas of the state.

Stamp duty on conveyance deeds in gram panchayat areas goes up from 3% of land rate to 4%. Stamp duty rate in peri-urban areas which are governed by municipal councils, some of them in the Mumbai metropolitan region (MMR), has been increased from 4% to 5%. The rate for conveyance in municipal corporation areas, however, remains unchanged at 5%.


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