Punjab reduces collector rates to further boost realty sector

In a further boost to the state's realty sector, the Punjab government today announced to slash circle rates in urban and rural segments.
Earlier, the state government had reduced the stamp duty on registration of property in urban areas from nine to six per cent.
The circle and collector rate in urban areas has been cut down by five per cent and in rural regions these have been lowered by 10 per cent, an official spokesperson said after a meeting chaired by Chief Minister Amarinder Singh.
The reduction will be applicable only to the basic land rates and shall not apply to the rates for super structures, a notification issued by the Special Chief Secretary and Financial Commissioner for Revenue, Karan Bir Singh Sidhu, said.

The reduction in circle rates has been notified under the Punjab Stamp (Dealing of Under-valued Instruments) Rules, 1982.
All the district collectors have been issued the necessary directives on the revision in the circle and collector rates, the spokesperson said.

The Punjab Cabinet two days ago had given in-principle approval to cut down the circle rates.
The cabinet had also decided to reduce stamp duty on registration of property in urban areas from nine to six per cent, by removing three per cent additional stamp duty chargeable as Social Security Fund for this period through an amendment in the Indian Stamp Act, 1899.

To propel the realty segment, the Council of Ministers had also decided to grant exemption from 10 per cent increase in Change of Land Use (CLU), External Development Charges (EDC) and License Fee (LF)/Permission Fee from April 1, 2017, to March 31, 2020, for projects.
Prominent among others who attended the meeting included Health and Family Welfare Minister Brahm Mohindra, Irrigation and Power Minister Rana Gurjeet Singh, Rural Development and Panchayats Minister Tripat Rajinder Singh Bajwa.