By Accommodation Times Bureau
The Union Minister, Venkaiah Naidu’s ministry wrote to the government to exempt affordable housing from stamp duty. The government is the facilitator for fixation of the rates and collecting duty. Hence, a request was forwarded for exemption from stamp duty.
Affordable housing is exempted from the service tax charges, which is almost 5.35% of the property’s selling price. The stamp duty charges are 4%- 5% of the transaction value. The minister stated that, the ministry made sure that the housing sector did not witness increase in the net tax amount, especially the affordable housing category. The ministry has also suggested the finance minister to maintain neutrality in the taxation rate. Many experts and authorities believe this to be a great initiative.
Mr Parveen Jain, President on NAREDCO said, “If Affordable Housing gets exemption from stamp duty, then it shall be a very welcome step which shall give a tremendous boost to the buyers. Currently the stamp duty varies from 4 to 8% of the transaction value and if is removed then it shall prove to be great relief to the buyers making the cost of Affordable housing even much more affordable.”
Mr Jain added, “Affordable Housing is the main tool of accomplishing the mission of ‘Housing for All’ and affordable housing is most suitable to cater to the demand of housing for the masses. If the stamp duty on the same is removed, then it shall become even much for feasible and pragmatic for the buyers to go for the buy. Also then the mission of ‘Housing for All’ shall become much more realistic benefitting the end-users.”