CREDAI Pune Metro demands cut in stamp duty, RR rates

REAL Estate industry, which is often regarded as one of the largest job creators and a significant contributor to country’s GDP is facing multiple problems in the current situation and has urged the state government to consider reduction in stamp duty and RR (Ready Reckoner) rates.

“As per the latest notification by the state government the RR rates will not change this year till further notice, any increase in RR at present from 1st June,20 is ruled out. However, we feel that in the current scenario something more is urgently needed. Government should consider reduction in RR to encourage more buying transactions in real estate segment, which will not only be beneficial to real estate segment but also to the state government. Reduction of 15-25 per cent in RR would surely help”, said Suhas Merchant, President, CREDAI Pune Metro.

“Today, in many areas Ready Reckoner rates are higher than the market rate and due to the clauses in the Income Tax act both buyer and seller are penalised if they make a transaction below 10 per cent of the prices mentioned in RR. Thus, customers are further wary of buying the property which results in losses for everyone. It would be appropriate to have RR rates as per the market situation and should not have only the upward trend every time”, he added.

Aditya Javdekar, Secretary, CREDAI Pune Metro pointed out that this is an unprecedented situation and the state government is expected to step in for demand generation and job creation. One way of doing it could be offering an incentive for property buying in the state. Some states in the country  like Karnataka have already taken steps in this regard.

“We have been requesting the state government to urgently go for considerable reduction in stamp duty. For example, homes under the size of 30 square meter should have a nominal stamp duty of Rs 1000/- (Rupees one thousand only) and for the ones below 60 square meters should be reduced to three per cent from the current figure of six per cent.  Most importantly, for rejuvenation of state’s economy buying of commercial space and industrial plots stamp duty could be one per cent of transaction value”, said Aditya Javdekar.

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