Buying a new flat? No cut in stamp duty

BANGALORE: Thought you were entitled for the reduced 6% stamp duty which came into effect on Wednesday? Flat buyers in the state, hold on. Because of government oversight, first-time sale of flats dont come under this until the anomaly is corrected. Simply put, for a brand new flat, you will have to pay the old rate of 7.5%. But if you are buying old flats, then the 6% rate kicks in. This means it is applicable to all other real-estate transactions except first-time sale of flats, which includes those built by the Bangalore Development Authority and Karnataka Housing Board. Flat sales account for lions share in the Bangalore property transactions. The government admits it as oversight and seeks to correct it by promulgating an ordinance. The chief ministers announcement in the 2009-10 budget to reduce the stamp duty on immovable properties from 7.5% to 6% came into effect on Wednesday. A gazetted notification has been issued on March 19 bringing amendments to Karnataka Stamp Act 1957. While a particular clause dealing with sale of immovable properties other than flats has been amended, the other two clauses - which pertain to sale of new flats - remain the same. Inspector general of stamps and registration department K R Niranjan told The Times of India: It is an oversight. Technically, the first-time sale of flats will have to stick to 7.5% stamp duty. We are bringing in an ordinance to amend Article 20, Clauses 2 and 3 to bring about uniform 6% stamp duty rates. There has been no communication to the sub-registrars about registration of new flats in the light of this botch-up. Till the ordinance is brought in, your registration cost wont come down.

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