BHUBANESWAR: In a move that could provide the pandemic-battered real estate sector some much-needed relief, the Odisha Assembly on Wednesday passed the amendment of Indian Stamp Act, 1899 reducing the stamp duty on development agreement-cum-general power of attorney from five per cent (pc) to two PC. Minister for Revenue and Disaster Management Sudam Marndi, who tabled the amendments, said the reduction in the stamp duty will create an environment conducive for real estate growth.
As per the amended provisions in agreement to sell/development agreement/construction agreement involving delivery of possession and Power of Attorney authorising the person other than family members to sell immovable property, stamp duty at two pc will be leviable. When development agreement and power of attorney are executed between the same parties involving the same property, and two pc stamp duty is paid on development agreement, then only a nominal amount of `1,000 as stamp duty will be paid on power of attorney.
“The cost of the real estate projects in Odisha will come down following the reduction in stamp duty that will not only have a salutary impact on the economy, but will also contribute immensely in creation of affordable housing for all categories of people,” Marndi added.
According to the amendment, five more family relations - daughter-in-law, grandson, granddaughter, grandfather and grandmother have been added within the scope of family members for execution of power of attorney for sale of any immovable property within the State for which stamp duty of `1,000 will be applicable.
Earlier, the amount was applicable for power of attorney in favour of father, mother, wife, husband, son, daughter, brother and sister to sell or transfer immovable property. However, the stamp duty has been enhanced from `10 to `100 for certified copy of the previously registered documents.The Confederation of Real Estate Developers’ Association of India (CREDAI) has welcomed the amendment.
Indian Stamp Act Amendment
Daughter-in-law, grandson, granddaughter, grandfather and grandmother added within the scope of family members for execution of power of attorney for sale of immovable property
Stamp duty enhanced from `10 to `100 for certified copy of the previously registered documents