Buying a new flat? No cut in stamp duty

BANGALORE: Thought you were entitled for the reduced 6% stamp duty which came into effect on Wednesday? Flat buyers in the state, hold on. Because of government oversight, first-time sale of flats don���t come under this until the anomaly is corrected.
Simply put, for a brand new flat, you will have to pay the old rate of 7.5%. But if you are buying old flats, then the 6% rate kicks in.
This means it is applicable to all other real-estate transactions except first-time sale of flats, which includes those built by the Bangalore Development Authority and Karnataka Housing Board.Flat sales account for lion���s share in the Bangalore property transactions.
The government admits it as ���oversight������ and seeks to correct it by promulgating an ordinance.
The chief minister���s announcement in the 2009-10 budget to reduce the stamp duty on immovable properties from 7.5% to 6% came into effect on Wednesday. A gazetted notification has been issued on March 19 bringing amendments to Karnataka Stamp Act 1957.
While a particular clause dealing with sale of immovable properties other than flats has been amended, the other two clauses - which pertain to sale of new flats - remain the same.
Inspector general of stamps and registration department K R Niranjan told The Times of India: ���It is an oversight. Technically, the first-time sale of flats will have to stick to 7.5% stamp duty. We are bringing in an ordinance to amend Article 20, Clauses 2 and 3 to bring about uniform 6% stamp duty rates.������
There has been no communication to the sub-registrars about registration of new flats in the light of this botch-up. Till the ordinance is brought in, your registration cost won���t come down.