Buying Property

Buying, renting property to become expensive in city

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Buying, renting property to become expensive in Mumbai

Buying or renting a property in Mumbai, the country’s financial capital, is already an expensive proposition. It is now a notch higher. In a bid to mop up additional revenue, the cash-starved government on Thursday hiked stamp duty rates for most property transactions.

Stamp duty payable on transactions including transfer of lease, transfer of tenancy, mortgage deeds, and hypothecation deeds were hiked. The duty payable on power of attorney executed for property transactions was already raised four fold — from Rs 250 to Rs 1,000.

While the state government had not increased taxation on property in its first budget presented last month, it moved the amendment in stamp duties through a bill, which was cleared by the state legislative assembly on Thursday.

Revenue Minister Eknath Khadse said that the government plans to mop up an additional Rs 300 crore through the revised tax proposals.

As anticipated, the government announced relief in stamp payments on gift deeds involving transfer of residential and agricultural property by a person to his wife, husband, son, daughter-in-law, grandson and grand daughter. The new Act also recognizes the right of daughter-in-law over a person’s ancestral property.

Besides property transactions, the stamp duties for telecasting rights, advertisement rights, articles of associations and memorandum of association of a company, money orders, and partnership deeds among other instruments was also revised. The government also brought Limited Liability Partnership within the ambit of stamp payment and hiked the upper limit for work contracts documents.

Realtors said that hike will make property transactions costlier throughout the state. The impact would be the most in the Mumbai Metropolitan Region, where property prices have already soared skywards.

On Thursday, which was the penultimate day of the budget session, the assembly cleared another bill that would facilities ease of business. It provides for deemed approval for conversion of agricultural land for non agriculture use if the government authorities fail to provide the permission within the prescribed time limit.

Source :- The Indian Express

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