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Karnataka Assembly passes Bill slashing rates on flats priced below Rs 45 lakh

The State Legislative Assembly passed an amendment to the Stamp Act, 1957, slashing the stamp duty payable on flats priced between Rs 35 lakh and Rs 45 lakh to 3%. The 2% reduction, however, is applicable only on first-time registration, primary sales in other words.

The Bill takes forward the announcement made by BS Yediyurappa, while presenting the budget as chief minister in March this year. The government had, in December last year, amended the law to levy a reduced stamp duty 3% stamp duty for apartments priced from Rs 20 lakh to Rs 35 lakh. In his budget last year, Yediyurappa had slashed the stamp duty on purchase of new flats priced below Rs 20 lakh to 2%.

Senior Congress member MB Patil urged the government to provide bigger relief on the lines of Maharashtra, which cut the stamp duty regardless of the price tag.

The state government, the revenue minister said, had been considering lowering the guidance value, and he has already held discussions with officials on this.

Revenue Minister R Ashoka said lakhs of flats in Bengaluru and in other cities have remained unsold due to the distress caused by the Covid-19 pandemic. The stamp duty reduction, he said, will help both the real estate sector which is struggling with a pile of inventory as well as low-income group families.

SourceEt realty

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