The Centre is finally set to overhaul the over 100-year-old Indian Stamps Act to bring in more consistency among the states in the way the stamps and registration duties are charged by them, besides rationalising rates and curbing evasion. By the move, the Centre intends to re-assert its constitutional right to determine the nature of the levy which is in the concurrent list, but the proceeds of which have conventionally been devolved almost entirely to states.
Currently, there is wide disparity among states both in the manner of this impost payable on legal documents as also the rates. States had collected about Rs 45,000 crore as stamp and registration duties and property tax in 2008-09.
As per the draft Bill for amendment put out by the finance ministry on Thursday, the impost on transfer of immovable properties would now be around 5 per cent, a narrower band as compared to 5-9 per cent at present. The rates have also been rationalised in case of instruments like debentures. The stamp duty on debentures has been proposed to be 0.25 per cent of the instrument’s face value or Rs 25 lakh, whichever is less, as against a wider range of 0.75-3.75 per cent at present.
Black money is usually parked in benami assets.So Govt should issue to all its registering authorities, not to register the properties transacted not through verifiable means of banking channels.As deliberated, Govt should adopt methodology to curb black money generation, first.So without addressing the real problem,the proposed ammendment in the stamp Act if undertaken shall deliver nothing good.
to dayvthe prices of immoveable properties has shoot up very high and at the same time people are interested inn receipts / payments more by cheques and lower amount of cash element. therefore to encourage mor cheque money it will be desireable to reduce the rate to 2 % for such properties which are between Rs, 1 to 10 Crores and 1.5 % for costing over 10 Crores. Govt will continue to get more stamp duties because people will pay more by cheques and will also curb the circulation of Black money. for woment a discount of about 50 5 be considered to look after their future stability in life if any untoward happens to women
Its really a wonderful move by the Finance Ministry which will yield more revenue to the states as well as reduce black money/ understatement in the value of the properties transferred.
with property prices shooting up,the cost of registration becomes a big burden. Unless cenral govt intervenes, the states willnot on their own reduce the rates.