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Offload inventories, don’t hang on to it, Puri tells builders

Maharashtra and Karnataka governments have cut stamp duty on transactions of immovable properties to boost sales.

By: Express News Service | New Delhi | November 28, 2020 7:20:50 am
Union Minister Hardeep Singh Puri.

The Centre will once again write to states requesting them to reduce stamp duty on registration of properties, to boost sales and revive the real estate sector, Housing and Urban Affairs Minister Hardeep Puri said Friday.

Addressing a virtual conference organised by realtors’ body NAREDCO, the minister said the circle rates need to come down, and asked developers to offload unsold inventories. “I think time has also now come to offload some inventories. Don’t hang on to it,” Puri said as he emphasised that it would spur economic activities and benefit developers.

Puri said the finance ministry has recently relaxed income tax rules increasing differential between circle rate and transaction value to 20 per cent.

Recently, the government announced changes in Income Tax rules to allow primary or first sale of housing units of up to Rs 2 crore at a price that can be 20 per cent below the stamp duty circle rate. Earlier, the law restricted differential between circle rate and agreement value at 10 per cent.

The move was aimed to help builders clear unsold inventories.

“This 20 per cent will lead to greater economic activities. All of you should step up now. Get rid of inventories,” Puri said.

Talking about stamp duty, Puri said he had written to chief ministers on this issue. Maharashtra and Karnataka governments have cut stamp duty on transactions of immovable properties to boost sales. Initial estimate suggest that there has been good response to the move, he noted.

The sales registrations in Maharashtra for September 2020 has surpassed pre-COVID-19 level and recorded highest registration for the calendar year at 1,19,834, the minister said.

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