HYDERABAD: Telangana government has reduced the transfer duty on gift deeds in favour of relatives in all municipalities and municipal corporations including Greater Hyderabad Municipal Corporation (GHMC) in the state from the existing 1.5 percent to 0.5 percent with immediate effect.
The municipal administration and urban development department on Thursday issued orders reducing transfer duty on gift deeds in favour of relatives as defined under Sec 56 (2) of the IT Act, 1961 Government (State and Central) and Local Bodies, Urban Development Authorities under the AP Municipality Act, 1965, AP Municipal Corporation Act, 1994 and GHMC Act, 1955.
“No doubt that citizens are going to benefit with reduction in transfer duty on gift deeds in favour of relatives in all municipalities and corporations but a large sum of revenue income that comes to the GHMC would be affected because of the the latest order,’’ GHMC officials told Express.
Through different land registration processes, GHMC used to get `350 crore to `400 crore annually. The GHMC would approach the state government to compensate for the loss of revenue which comes through land registrations.
The GHMC has proposed to take up several new projects under Strategic Road Development Plan (SRDP) and others. The GHMC would calculate the revenue impact arising out of the government order, they added.