BHUBANESWAR: The state government’s recent stamp duty revision, making it uniform at 5 per cent on the purchase of apartments, has sparked apprehensions that the economically weaker section and affordable housing will get costlier impacting a substantial section of home buyers.
Stamp duties were earlier levied in slabs -- 3 pc for apartments priced up to Rs 5 lakh, 4 pc for those in Rs 5 lakh-Rs 15 lakh bracket and 5 pc for properties above Rs 15 lakh. Under the new provision of the Revenue department, buyers will now have to pay a flat 5 pc stamp duty regardless of the apartment’s value.
Experts said that the move 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 2 pc extra stamp duty for registration.
“Instead of revising the stamp duty to 5 pc for all categories, the state government should have increased the slab of affordable housing projects, considering the increasing cost of the apartment projects,” said real estate expert Bimalendu Pradhan.
Experts are also of the view that the cabinet decision is silent on the double taxation of the home buyers. Pradhan argued that individual registration already attracts 5 pc stamp duty on the home buyer and it covers the common area facilities.
“If the stamp duty already covers the levy on common areas, why should the buyer again pay towards transfer of the same facilities which the Association of Allottees is supposed to pay in form of one-time levy of Rs 50,000. This is double taxation,” he said.
In large housing complexes, the home buyers may not feel the pinch but in smaller ones, it is still substantial.
Moreover, there is confusion regarding exemption of 1 pc stamp duty for women at the time of registration. The government had announced 1 pc stamp duty concession in property registration on standard rate for women in 2016 to promote women’s empowerment and encourage property ownership in their name. The current cabinet decision is silent on this part.