By Accommodation Times Bureau
If a tenant purchasing property from landlord in a pugree system property, the stamp duty was leviable on 90% of the value of stamp duty ready recknor. Now in State Budget of Government of Maharashtra, levying stamp duty on 100% value according to stamp duty ready reacknor.
Pugree system emerged before 1949 to pay entire sale proceed in black money or in cash and just show notional rent of Rs.1 or two to show to the government that the deal is of tenancy in nature. Off late, Pugree system was legalised by state government and hence transfer tenancy became legal property transaction.
Just Rs.200 sq.ft. Was the value counted for any transaction previously for residential purposes and for stamp duty calculation.
Stamp duty is now becoming major and main source of revenue for state governments. The purpose of stamp duty and registration charges are to just up keep the administrative cost to record the transaction. It is now have emerged as milking cow for exchequers. Though the rationalisation of stamp duty was required but in spite of that government in our country do not understand the purposes for taxation. When there was 98% income tax, there were few who were paying taxes. But now since Income Tax have just reached 10%, targets for revenue from such taxes are over archived every time. The social engineering must be understood before applying any tax.
In all 37% taxes are imposed on property transaction for residential units besides local self government taxes. VAT, Service Tax, and Income Tax are just killing real estate sector which is feeding 200 industries and major contributor to GDP.