After completing the necessary formalities to convert the ordinance into Act and the passing of bill by the Punjab Vidhan Sabha, finally The Indian Stamp Act 1899(for Punjab) has been amended and The Indian Stamp (Punjab Amendment) Act, 2017 has been notified.
With this, the reduction in stamp duty on urban property from 9% to 6% has come into effect, informed Vinni Mahajan, Financial Commissioner Revenue, Punjab.
The FCR informed that the Stamp Duty @ 5 % and Additional Stamp Duty @ 1% is levied on the sale/transfer of immovable property, under the Indian Stamp Act, 1899 (for Punjab) and the annexed schedule thereto. However, for the urban areas, Social Security Fund @ 3% is also charged. Hence the total stamp duty charges in urban areas are 9% whereas in rural areas they are 6%.
In order to give some relief to the buyers of the property in urban areas, State Government had announced in the budget session that the stamp duty on the registration of the property shall be reduced from 9% to 6%. Accordingly, it was decided that the additional stamp duty being levied as Social Security Fund @ 3% in the urban areas may be exempted up to 31.03.2019. The reduction in stamp duty is expected to provide an impetus to the real estate market in the State.
This act shall be deemed to have come into force with effect from August 28, 2017 and shall cease to operate with effect from April 1, 2019.