Central government keen to abolish stamp duty on affordable housing

0
460

If M Venkaiah Naidu has his way, the stamp duty on affordable homes may soon be abolished. He spoke about this while addressing the Confederation of Real Estate Developers’ Associations of India (CREDAI).

affordable-housing
Owning an affordable home could get cheaper if states implement the centre’s recommendation.

Stamp duty is a state subject, with the Ministry for Urban Development and Housing writing a letter to all states to exempt affordable houses from it.  Stamp duty envisages a transaction has occurred between a buyer and seller and ranges between 4% and 11% of the property value.

Homes under the affordable housing scheme enjoy service tax exemption as well. Service tax rates are around 5.35% of the property value (at the time of sale). This scheme is implemented under the National Mission for Urban Housing.

He also stated that the government is keen to ensure there is no increase in tax in the housing sector. One key point he stressed on was the Goods and Services Tax (GST), which the Centre plans to implement it in July. This tax will eliminate cascading effect of tax, helping entities save on it, reducing confusion regarding multiple tax tiers as well.

While stamp duty has not been included under the ambit of GST, the Ministry of Urban Development and Housing has sent a recommendation to the Ministry of Finance asking for exemption of service tax on affordable homes.

Additionally, he also stressed on including the real estate sector under GST, stating that this would benefit the industry by avoiding cascading of tax.

All information, including but not limited to news articles, published on this website are strictly for general information purpose only. BankBazaarnews.com does not provide any warranty about the authenticity and accuracy of such information. BankBazaarnews.com will not be held responsible for any loss and/or damage that may arise or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for any product may vary from the information mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

Copyright reserved © 2018 A & A Dukaan Financial Services Private Ltd. All rights reserved.

LEAVE A REPLY

Please enter your comment!
Please enter your name here