The pandemic has caused much distress in the country and affected the home buying sentiments as well which is why the real estate sector is dealing with a pile of unsold inventory. The government of Karnataka has stepped in to resolve the issue by slashing the stamp duty and helping the middle-income & lower-income group of the country.
The Karnataka Legislative Assembly passed an amendment to the Stamp Act of 1957, slashing the stamp duty on the flats ranging between ₹35-₹45 Lakh to 3%. The 2% reduction is only applicable on primary sales and first-time registrations.
R Ashoka, the revenue minister of Karnataka mentioned that the stamp duty reduction will support in boosting the real estate sector and homebuyers. It will also contribute to the sale of unsold inventories in Bengaluru.
Last year, in the month of December, the government amended the law to reduce the stamp duty at 3% for apartments priced between ₹20 to ₹35 Lakhs. In the last year’s budget, Mr. BS Yediyurappa slashed the stamp duty to 2% on purchase of new flats worth below ₹20 Lakh.
Mr. MB Patil, who is a senior member of congress urged the government to provide a bigger relief referring to how the Maharashtra government has completely cut the stamp duty regardless of the price tag of the flats.
The revenue minister has mentioned that the state government is considering lowering the guidance value and has already held discussions with officials on the same.