Stamp Duties Likely To Be Exempted For Affordable Homes Making It More Affordable
May 27, 2017 Legal Guidance
This year has started with very promising and happy note for the real estate sector. Not just for the buyers but also for the developers, many new laws and changes have been implemented to boost the real estate sector. Potential buyers have been taking the advantage of the reduced home loans by the banks and loan lending companies. To make the property buying more affordable and reachable, the government has announced to exempt the stamp duties for the affordable homes.
The stamp duties vary from state to state and are generally 4 percent to 8 percent of the total cost. Union Minister for urban development and housing, Mr M Venkaiah Naidu has announced that they have asked the state governments to exempt the stamp duties for the affordable housing. Stamp duties depend on the state government rather than the central government.
The affordable housing project is government’s most crucial real estate project which aims to provide housing for all without burning a hole in the pocket. The union minister said while addressing the Confederation of Real Estate Developer’s Association (CREDAI) that the central government will make sure that there has been no net tax escalation, especially in the real estate sector following the impletion of Goods and Service Tax (GST).
Assuring the people he said that the implementation of GST in real estate sector will help boost the sales and development.
For now, the affordable housing homes are exempted from the service tax, which around 5.34 percent of the total cost of the property. He explained that his ministry has been in talks with the central government to keep the exemptions under the GST for the benefit of buyers and builders both.
Recommending the need to the finance ministry he said that the real estate sector should be taxed at the rate which is revenue neutral and not on the expensive side.
Now, it all depends on the respective state governments how they are going to reduce the stamp duties and implement it. But nonetheless, this has been welcomed by the potential buyers and are now waiting for the state governments to make move in the same line.
The stamp duties vary from state to state and are generally 4 percent to 8 percent of the total cost. Union Minister for urban development and housing, Mr M Venkaiah Naidu has announced that they have asked the state governments to exempt the stamp duties for the affordable housing. Stamp duties depend on the state government rather than the central government.
The affordable housing project is government’s most crucial real estate project which aims to provide housing for all without burning a hole in the pocket. The union minister said while addressing the Confederation of Real Estate Developer’s Association (CREDAI) that the central government will make sure that there has been no net tax escalation, especially in the real estate sector following the impletion of Goods and Service Tax (GST).
Assuring the people he said that the implementation of GST in real estate sector will help boost the sales and development.
For now, the affordable housing homes are exempted from the service tax, which around 5.34 percent of the total cost of the property. He explained that his ministry has been in talks with the central government to keep the exemptions under the GST for the benefit of buyers and builders both.
Recommending the need to the finance ministry he said that the real estate sector should be taxed at the rate which is revenue neutral and not on the expensive side.
Now, it all depends on the respective state governments how they are going to reduce the stamp duties and implement it. But nonetheless, this has been welcomed by the potential buyers and are now waiting for the state governments to make move in the same line.
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