BHUBANESWAR: The state government on Thursday promulgated the Indian Stamp (Odisha Amendment) Ordinance, 2026, to simplify apartment registration and reduce stamp duty burdens for both homebuyers and residents’ associations.
Officials in the Revenue and Disaster Management department said the ordinance will simplify the process of apartment registration and safeguard the government’s revenue collection.
The state government had recently obtained cabinet approval for promulgation of the ordinance to carry out the necessary amendments to the Indian Stamp Act, 1899.
The Odisha Apartment (Ownership and Management) Act, 2023, mandates transfer of entire common areas and facilities of a real estate project in favour of ‘Association of Allottees’ at the time of registration of first deed of conveyance. For the purpose, the Association of Allottees was required to pay five per cent stamp duty for execution of the deed of conveyance, which resulted in a significant financial burden on it and created impediments in the process of apartment registration.
However, following the fresh ordinance, the Association of Allottees is now required to pay only a nominal stamp duty of Rs 50,000 for execution of the deed of conveyance for transfer of common areas and facilities in its favour.
Further, at the time of transfer of individual apartment unit, five per cent stamp duty pertaining to it along with the undivided proportionate share in the common areas will be collected during execution of individual deeds of conveyance in favour of the allottee.
Besides, instead of three existing slabs of three pc, four pc and five pc, the buyer is now required to pay a uniform stamp duty at the rate of five pc at the time of registration of apartment, Revenue department officials said.
Real estate experts, however, questioned this move of the state government. They said the decision could lead to double taxation of the homebuyers as the individual registration already attracts five pc stamp duty on the homebuyer and it covers the common area facilities.
They further pointed out that the uniform stamp duty will impact the lower-income groups looking for affordable housing projects, not only in the state capital but also across Odisha, as buyers will have to shell out two pc extra stamp duty for registration.