NAGPUR: A relief for all property builders, buyers and developers, the Stamp and Registration Department has reduced the stamp duty in Nagpur by 0.5%, which has been revived for NagpurImprovement Trust (NIT) for the last 83 years.
Nevertheless, the decision is a major hurdle for the Nagpur Municipal Corporation (NMC), as
it still has to receive revenue as it has sprouted all areas of the NIT (Nagpur Improvement Trust).
An administrator of the Department of Stamps and Registration said stamp duty is now 7% vs. 7.5%,
with stamp duty coming into force from 1 December. "This stamp is made according to the representative's rules," the official said.
In a letter, Ughde said, "There was a requirement in section 77 of the NIT Act 1936 to get a 0.5% stamp duty from all activities and transactions in the neighborhood that is developing under the jurisdiction of the NIT. Filed on 27 August Within the information, the state government had distributed the overall NIT areas, particularly seven projects, to the NMC. There is no area of NE. Therefore, the stamp duty charged for NITs needs to be discontinued. "
The Stamps and Registration Department collected a 0.5%
stamp duty from all transactions beyond the city and submitted it to the NIT.
After a few court orders, the department started to discharge the stamp duty
from the areas, especially after NIT jurisdiction. NIT has spent 12.50 crores
annually.
The reduction in stamp duty is huge news for property
builders, buyers, and developers, as it was one of the greatest in the state.
The government took the entire neighborhood of the NIT to
the NMC from August 27, as per the requirements in the NIT Act. The areas
transferred by NIT to NMC are mainly unauthorized and under-developed. This is
observed as a massive financial hardship over the remaining NMC, which has been
erupting earlier under a financial emergency. But the civic body has not
received stamp duty raised for NIT.
NMC is also
receiving stamp duty of 1% from the abolition of Octroi in April 2013.