To give much-needed impetus to the real estate sector in Punjab, the State Council of Ministers (CoM) on Friday in-principle decided to lower or rationalise the circle or collectorate rates, while reducing the stamp duty on registration of property in urban areas.
Chief Minister Capt Amarinder Singh, chairing the meeting, directed a formal proposal on reduction in circle or collectorate rates to be presented in the next Cabinet meeting, with the Deputy Commissioners to be instructed to formulate the new circle rates.
State local Bodies Minister Navjot Singh Sidhu said that he was already working on the proposal and would present in the next meeting for consideration.
To boost the languishing real estate sector in the State, the Cabinet gave approval to reduction in stamp duty on the registration of property in urban areas from nine to six percent till March 31, 2018.
“The Cabinet decided to remove three per cent additional stamp duty chargeable as Social Security Fund for this period through an amendment to Section 3-C and schedule 1-B of the Indian Stamp Act, 1899, as announced by the Finance Minister in his Budget speech in the State Assembly,” said the spokesperson.
In another important decision to propel the reality segment, the Cabinet also decided to grant exemption from 10 percent increase in Change of land Use (ClU), External Development Charges (EDC) and license Fee (lF)/Permission Fee from April 1, 2017 to March 31, 2020 for real estate projects.
The Cabinet also in principle agreed to lower or rationalise circle or collectorate rates, which it felt was essential to give an impetus to the real estate sector.