Reduce Stamp Duty to two percent: NAREDCO
NAREDCO welcomes the Govt. of NCT Delhi decision to enhance Delhi circle rates for registration of property sale deeds by 100%. This will not only increase the stamp duty collection which is shared between Govt. of NCT, Delhi and MCD but encourage property buyers and sellers to declare true value of the property thereby minimizing transaction of black money.
However, NAREDCO has also called for reduction in stamp duty as a next step as this would encourage more people to declare true value even in high value transaction of property and increase revenue to the govt.
Reduction in stamp duty of 6% to not more than 2% is suggested to encourage property transactions at fair price closer to market rates. It is expected lower stamp duty rate shall lead to better compliance and higher collection of revenue than higher rates.
Compared to Delhi, the circle rates in neighboring UP and Haryana are high and are being revised very often by the respective State Governments to earn more revenue in the form of stamp duty. This is a dangerous trend as it is inflating land prices disproportionally and making housing costlier for people. In case stamp duty is low, people will voluntarily disclose true values making circle rate irrelevant. Also the truthful market economy will then come to force.
For more information, please contact
Mr. Suneel Sehgal, Deputy Director General-NAREDCO at 9911697301