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If the Maharashtra government has its way, it would soon be possible for owners of immovable property to transfer ownership to their heirs without coughing up a stamp duty.
During the ongoing Budget session of the Maharashtra Assembly, the government is going to take a call to amend the Bombay Stamps Act, 1958, or issue an executive order to enable the transfer of immovable property such as land, building or tenement to their progeny or relatives without the imposition of a stamp duty.
Minister of Revenue Eknath Khadse last week announced that the five per cent stamp duty will be waived for such transfer from a person to their heirs or relatives when they are alive. Khadse said an affidavit on stamp paper worth Rs 500 will be sufficient.
Already such exemption is applicable to property transferred as gift to heirs or relatives after the death of property holder concerned.
A senior government officer told Business Standard: “The revenue minister’s announcement on the proposed waiver in stamp duty is not a part of the Maharashtra’s annual Budget for 2015-16. Neither it will be included in the Finance Bill, to be taken up next week. The revenue department will decide on whether or not to move amendments to the Bombay Stamp Act, 1958, or issue an executive order. The decision in this regard is expected during the concluding week of the Budget session which ends on April 10. Any matter involving taxation is usually take up in the legislature.”
Only after the proposed amendments or issuance of executive order will the exemption from stamp duty be applicable. This exemption is expected to reduce harassment and check corruption.
The official said the government collects about Rs 30,000 crore annually through stamp duty of which Rs 12,000 crore comes from property transactions. “Of the Rs 12,000 crore, the government gets Rs 60 crore from the five per cent stamp duty on transfer of immovable property to heirs or relatives after the death of property holder.”
An officer from the revenue department said the government can issue an executive order under Section 9 of the Bombay Stamp Act, 1958 with regard to government’s power to reduce, remit or compound duties. Officials said the government will incorporate the proposed waiver in the stamp duty in Schedule 1 of the Bombay Stamp Act, 1958.
Sanjay Dutt, managing director, Cushman & Wakefield, said it would help those who are planning to gift any property to their children or relatives.
Pranay Vakil, founder-chairmanof Knight Frank, said it will help those who want to gift property during their lifetime.
During the ongoing Budget session of the Maharashtra Assembly, the government is going to take a call to amend the Bombay Stamps Act, 1958, or issue an executive order to enable the transfer of immovable property such as land, building or tenement to their progeny or relatives without the imposition of a stamp duty.
Minister of Revenue Eknath Khadse last week announced that the five per cent stamp duty will be waived for such transfer from a person to their heirs or relatives when they are alive. Khadse said an affidavit on stamp paper worth Rs 500 will be sufficient.
Already such exemption is applicable to property transferred as gift to heirs or relatives after the death of property holder concerned.
A senior government officer told Business Standard: “The revenue minister’s announcement on the proposed waiver in stamp duty is not a part of the Maharashtra’s annual Budget for 2015-16. Neither it will be included in the Finance Bill, to be taken up next week. The revenue department will decide on whether or not to move amendments to the Bombay Stamp Act, 1958, or issue an executive order. The decision in this regard is expected during the concluding week of the Budget session which ends on April 10. Any matter involving taxation is usually take up in the legislature.”
Only after the proposed amendments or issuance of executive order will the exemption from stamp duty be applicable. This exemption is expected to reduce harassment and check corruption.
The official said the government collects about Rs 30,000 crore annually through stamp duty of which Rs 12,000 crore comes from property transactions. “Of the Rs 12,000 crore, the government gets Rs 60 crore from the five per cent stamp duty on transfer of immovable property to heirs or relatives after the death of property holder.”
An officer from the revenue department said the government can issue an executive order under Section 9 of the Bombay Stamp Act, 1958 with regard to government’s power to reduce, remit or compound duties. Officials said the government will incorporate the proposed waiver in the stamp duty in Schedule 1 of the Bombay Stamp Act, 1958.
Sanjay Dutt, managing director, Cushman & Wakefield, said it would help those who are planning to gift any property to their children or relatives.
Pranay Vakil, founder-chairmanof Knight Frank, said it will help those who want to gift property during their lifetime.
