NEW DELHI: The Comptroller and Auditor General's (CAG) audit into Centre's urban renewal programme - Jawaharlal Nehru National Urban Renewal Mission (JNNURM) -- has shown that 40% of states and Union Territories have failed to rationalize stamp duty to 5% for property registration. The defaulting states include Delhi, Haryana, West Bengal, Karnataka, Kerala and Chhattisgarh.
High stamp duty discourages property registration at actual or market value and thereby increases scope of black money in the realty sector.
As per JNNURM norms, stamp duty was to be brought down to 5% or less, including surcharges by local municipal bodies, during implementation of the programme. "It was expected that a reduction in the rate would help develop a healthy real estate market, by providing a boost to the economy, and reduce black money. It was expected that reduction in stamp duty rates would lead to an increase in revenue both for the states and urban local bodies," the report said.
The CAG found that out of 30 states/UTs selected for scrutiny, only 16, including Andhra Pradesh, Chandigarh, Gujarat, Maharashtra, Punjab, Uttar Pradesh and Rajasthan had either 5% or less as stamp duty.
The report mentioned that in the case of Uttarakhand, stamp duty was reduced to 5% for men and 3.5% for women. On the contrary, in Haryana, stamp duty is 7% (5% plus 2% as local body surcharge) for men and 5% for women, including 2% surcharge for local bodies
Around 40% states still have more than 5% as stamp duty
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Around 40% states still have more than 5% as stamp duty
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Around 40% states still have more than 5% as stamp duty
