BHUBANESWAR: In a major relief for economically-weaker homebuyers, the state government has introduced a provision, allowing up to 90 per cent (pc) exemption in stamp duty on the transfer or allotment of houses under Pradhan Mantri Awas Yojana (Urban) 2.0 and other state registered affordable housing schemes.
A notification issued by the Revenue and Disaster Management department stated that the exemption will apply to deeds executed in favour of beneficiaries belonging to the Economically Weaker Section (EWS) for houses registered as affordable housing in urban areas.
The decision comes weeks after the state government’s revision of stamp duty rates on apartments had triggered concerns over rising costs for affordable housing. The revised policy made stamp duty uniform at 5 pc on the purchase of apartments, replacing the earlier slab-based structure. Previously, stamp duty was levied at 3 pc for apartments priced up to Rs 5 lakh, 4 pc for properties valued between Rs 5 lakh and Rs 15 lakh and 5 pc for apartments costing above Rs 15 lakh.
However, under the revised provision, all apartment buyers were made to pay a flat 5 pc stamp duty irrespective of the property’s value. Real estate experts had warned that the uniform rate would disproportionately affect lower-income buyers seeking affordable housing.