Stamp duty down, Noida,Ghaziabad
Stamp duty down, Noida,Ghaziabad look to pack coffers
The Uttar Pradesh government's decision today to reduce stamp duty on registration of properties is expected to come as a relief for both potential homeowners and the authorities in Noida, Greater Noida and Ghaziabad.
With the duty down from 8 per cent to 5 per cent -- it's slashed from 6 per cent to 4 per cent for women -- the Authority expects more people to come forward and get their property registered, at a cheaper rate. In effect, that would mean an increase in revenue collection for the different administrations, which expect malpractices and evasion to dip drastically
The finance and revenue department had amassed Rs 775 crore in stamp duty last year, and Trivedi expects the figure to shoot up after the rate cut.
Experts also expect the reduced rates to affect the property market. "Many property dealers buy houses and sit back on the registration front," said N P Singh, president of Noida's Forum of Residents' Welfare Associations. But, following today's decision, "such dealers would sell the property, and the buyers would be more forthcoming in paying up the registration amount."
The relief comes barely a month after the Noida Authority had hiked land rates in the IT city by between 20 per cent and 25 per cent in May. The cut in duty is, meanwhile, expected to prop up the flattening property market in neighbouring Greater Noida, and Vaishali, Vasundhara and Kaushambi areas of Ghaziabad.
"The reduction in stamp duty will encourage potential house owners to own a property legally without evading registry payment. Such dodging amounts to loss worth crores every year," said Shivakant Trivedi, additional district magistrate (finance and revenue), Gautam Budh Nagar.
Noida-based Nitya Bhagat, in real estate trade for the past 20 years, said another way the reduced stamp duty rates would help the administration is by getting people to show value of their property closer to the actual rate. "If someone has bought a house for Rs 40 lakh, for instance, he will be encouraged now to show the figure at Rs 30 lakh," he said. "Earlier, under the 8-per cent duty regime, he would perhaps have listed the property for Rs 20 lakh."
Additional district magistrate Trivedi said real estate agents who previously evaded paying stamp duty would now be encouraged to pay up and "become legal owners of the property". He, however, does not expect the difference between the "real amount" of a property and the price quoted to reduce substantially.
The Uttar Pradesh government's decision today to reduce stamp duty on registration of properties is expected to come as a relief for both potential homeowners and the authorities in Noida, Greater Noida and Ghaziabad.
With the duty down from 8 per cent to 5 per cent -- it's slashed from 6 per cent to 4 per cent for women -- the Authority expects more people to come forward and get their property registered, at a cheaper rate. In effect, that would mean an increase in revenue collection for the different administrations, which expect malpractices and evasion to dip drastically
The finance and revenue department had amassed Rs 775 crore in stamp duty last year, and Trivedi expects the figure to shoot up after the rate cut.
Experts also expect the reduced rates to affect the property market. "Many property dealers buy houses and sit back on the registration front," said N P Singh, president of Noida's Forum of Residents' Welfare Associations. But, following today's decision, "such dealers would sell the property, and the buyers would be more forthcoming in paying up the registration amount."
The relief comes barely a month after the Noida Authority had hiked land rates in the IT city by between 20 per cent and 25 per cent in May. The cut in duty is, meanwhile, expected to prop up the flattening property market in neighbouring Greater Noida, and Vaishali, Vasundhara and Kaushambi areas of Ghaziabad.
"The reduction in stamp duty will encourage potential house owners to own a property legally without evading registry payment. Such dodging amounts to loss worth crores every year," said Shivakant Trivedi, additional district magistrate (finance and revenue), Gautam Budh Nagar.
Noida-based Nitya Bhagat, in real estate trade for the past 20 years, said another way the reduced stamp duty rates would help the administration is by getting people to show value of their property closer to the actual rate. "If someone has bought a house for Rs 40 lakh, for instance, he will be encouraged now to show the figure at Rs 30 lakh," he said. "Earlier, under the 8-per cent duty regime, he would perhaps have listed the property for Rs 20 lakh."
Additional district magistrate Trivedi said real estate agents who previously evaded paying stamp duty would now be encouraged to pay up and "become legal owners of the property". He, however, does not expect the difference between the "real amount" of a property and the price quoted to reduce substantially.