Government to Cut Stamp Duty on Purchase of Home Under Affordable Housing

Central government is planning to cut off the stamp duty on the purchase of houses under affordable housing scheme after home loan subsidy. The source informed that the government may take the decision of removing the stamp duty on the purchase of home under affordable housing scheme after home loan subsidy.

Central housing and urban development minister, Vankaiaya Naidu directed the state government to remove the stamp duty by writing letters to all the states. Collecting stamp duty is comes under state government and only they take any decision on the same. Recovering stamp duty on the sale and purchase of house, land and any property is a subject of state government. Currently, the state governments are charging 4 percent to 12 percent stamp on on the sale and purchase of house, land and any property.

Confederation of Real Estate Developers’ Associations of India (CREDAI) organised a meeting with official in which, MHUDA minster said that the centre would take the decision in the regard of not to increase the tax on housing sector after inclusion of GST.

Meanwhile the source said that the real estate industry would help to add the real estate market in GST.

Housing sector has already exemption in service tax and it is around 5.35 % of sale price. Naidu told the finance ministry to continue the exemption of service tax on housing in GST. He further informed that the state government are not in the favour of adding the subject into GST.

Below are the cities who will get more benefits:

Jaipur – Stamp Duty – 06%

Raipur – Stamp Duty – 05%

Bhopal – Stamp Duty – 9.3%

Source: https://www.patrika.com/news/raipur/raipur-affordable-housing-scheme-1526220/