Punjab: Relief for property buyers as state government won’t charge social security fund from April 1https://indianexpress.com/article/cities/chandigarh/punjab-relief-for-property-buyers-state-govt-wont-charge-social-security-fund-5652037/

Punjab: Relief for property buyers as state government won’t charge social security fund from April 1

The state government had also written to the Election Commission (EC) for approval and letters were also sent to all deputy commissioners (DCs) in Punjab in this regard on Saturday.

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The Mohali Property Consultants Association (MPCA) welcomed the government’s decision. (Representational Image)

IN A move that could spell much relief for property-buyers, the Punjab government has decided not to charge 3 per cent extra stamp duty, known as ‘Social Security Fund’, on the property registration. The stamp duty was initially supposed to be charged from April 1 onwards.

The state government had also written to the Election Commission (EC) for approval and letters were also sent to all deputy commissioners (DCs) in Punjab in this regard on Saturday.

The letters state that as per a December 19, 2017 notification, the then government had exempted people from the Social Security Fund for two years and stamp duty would be charged from April 1 this year. “The model code of conduct is in place so the government decided not to charge the 3 per cent stamp duty which was charged in urban areas. The decision was taken by a committee headed by chief secretary and it was now under the consideration of the Election Commission,” it further said, adding that stamp duty shall not be charged until new orders are issued.

The Mohali Property Consultants Association (MPCA) welcomed the government’s decision. MPCA secretary Harpreet Singh Dadwal said the 3 per cent stamp duty was an extra burden on property buyers.

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“Every month, on an average, 25 to 30 registrations are done in the district every day. With the imposition of the new tax, there could be a decrease in the number of property registrations, which shall eventually decrease the revenue of the state government,” Harpreet Dadwal told Newsline.

The president of MPCA, Bhupinder Sabharwal, too said that with the decision, the government shall generate more revenue.

Anita Sharma, a Phase 2 resident, said that she along with her husband Atul Sharma had applied for a loan to buy an apartment but came to know that they have to pay 3 percent more stamp duty from April 1, which meant around Rs. 60,000 more. “It is a major relief for us,” she said.

Gurdeep Kaur, a Sector 68 resident, who bought an apartment in Sector 105, also said that she had paid the booking amount and the registration was to be done this month, but it was delayed and she was worried as she would have to shell out around Rs 90,000 more.