Karnataka Government Slashes Stamp Duty to 3% from 5%
Low-cost homes in Bengaluru, one of the largest real estate markets in the country, and the rest of Karnataka will become cheaper as the state government has brought stamp duty reduction from 5 per cent to 3 per cent for a year. The announcement was made by Chief Minister BS Yeddyurappa while presenting the state budget for the year 2021-2022 in the assembly on Monday. The stamp duty reduction will be applicable for apartments in the Rs 35 lakh-Rs 40 lakh range.
The Chief Minister BS Yeddyurappa announced that the move was aimed at boosting affordable housing in the state, particularly the capital Bengaluru.
The real estate sector in Karnataka has been badly hit after the coronavirus pandemic paralyzed sales last year. While the neighboring state of Maharashtra witnessed a sharp recovery in housing sales in the past few months after the state government announced a deep cut in stamp duty in August last year, the real estate market showed modest recovery in Karnataka that has seen piling up of housing inventory for the past few years.
The stamps and registrations department of Karnataka government, however, did not announce any change in the targeted revenue of Rs 12,655 crore for the next financial year. That means the government is expecting a sharp recovery in the real estate sector. The department had collected Rs 9,014 crore from stamps and registrations till February this year.