Registration of Gift Deed between blood relatives required No Stamp duty

Few days before Maharashtra government had decided to waive stamp duty on transfer of immovable property by the owner to an heir or a family member. The decision was announced by Revenue Minister Eknath Khadse in the Legislative Assembly. Khadse also added that all such transactions would have to be compulsorily registered with the government.

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Find the copy of Notification from below link:

http://igrmaharashtra.gov.in/pdf/GazetteSearch.pdf

e norms prevalent a 2% duty on the property’s market value (ready reckoner rate) was payable in cases where the property was being gifted to a family member, under the Maharashtra Stamp Act. In cases where the transfer of property does not qualify as ancestral property, the stamp duty payable was 5%. This is along with a stamp duty of Rs.200 on a release deed with respect to an ancestral property.

Government has issued the notification regarding the amendment in the Maharashtra Stamp Act Amendment bill 20/2015, on 24th April, 2015, as per the notification the waive stamp duty on transfer of immovable property by the owner to an heir or a family member, will be applicable w.e.f. 24th April, 2015.

2 crore Houses for Urban Poor Approves By Union Cabinet

Minister of Housing and Urban Poverty Alleviation Shri M.Venkaiah Naidu has stated that the Union Cabinet has approved construction of 2 crore houses for the urban poor in all the 4,041 statutory towns and cities of the country. He said so while speaking on the occasion of 45th Foundation Day of the Housing and Urban Development Corporation here today. He said that another 4 crore houses will be built under the ‘Housing for All by 2022’ initiative of the central government.

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Stating that building 6 crore houses for the poor of the country is a challenging task, Shri Naidu said that central and state governments need to work hand-in-hand for the success of the Housing Mission. Shri Naidu underlined the need for effective participation of public and private sector in meeting the housing needs of the urban poor and sought their cooperation.

The Minister said that the government is working on a two pronged strategy of enhancing access to housing financing in general and ensuring credit at lower rates of interest to the poor to ensure housing for all. Shri Naidu referred to several initiatives taken by the Government to enable FDI in housing sector. These include: Allowing FDI of up to 100% under automatic route in real estate projects, reducing minimum built up area and capitalization norms, enhanced tax exemptions for investments in housing, promotion of Real Estate Investment Trusts etc.

HUDCO is a PSU under the Ministry of HUPA providing technical and financial support to housing sector with special focus on the economically weaker sections and lower income groups. It has so far supported construction of over 16 million houses across the country.

Stamp Duty on Agreement for Sale prior to 10-12-1985 is Rs. 5 only

By Santosh Kumar & Sunit Gupta

By Accommodation Times News Services

After the announcement of the Stamp Duty Amnesty 2008, there are some consultants and self designated specialists who are misguiding the people b strongly advising that full stamp duty will be charged on agreement for sale even prior to 10-12-1985. Not only that they are stressing that even the registered document will also attract stamp duty. Failing which 10 times the stamp duty amount will be levied as penalty at the time of conveyance. Most of the people are very much confused because at Stamp duty office they are not accepting documents prior to 10-12-1985 contrary to advise given by the consultants. Please note there is no denying the benefit of amnesty, because all such documents are duly stamped, hence they do not need further stamping, as such the benefit of amnesty does not arise.
Our office has been receiving several telephonic clarifications, since we are the publishers of the Ready Reckoner’s for all earlier years. To clarify this doubt GLOBUS spoke to Santosh Kumar, senior estate valuer and co-author of the Stamp Duty Ready Reckoner and Market Value of Flats in Mumbai / Thane, who clarifies the doubt as under.

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The stamp duty on agreement for sale prior to 10-12-1985 is Rs. 5 only and no more stamp duty will be charged on all such documents. This point was also clarified by Dr Nitin Kareer, I.G.R. Maharashtra, during a public meeting held on 11-4-2004 at K.C. College, Mumbai. In this connection Law and Judiciary Department of the Government of Maharashtra, has also issued a clarification on 24-1-1995, the same is reproduced on backside, which is self explanatory. In view of this clarification all such documents can be annexed with the deed of confirmation on Rs. 100 stamp paper only and the deed of confirmation will be registered annexed with agreement for sale on Rs. 5 Stamp paper. There are several such documents already registered by the sub-registrar of assurance Mumbai, that can be inspected under the Right to Information Act. In case of difficulty one should not hesitate to contact I.G.R. Maharashtra, Pune.
The agreements for sale prior to 10-12-1985 are classified in two groups. One that is registered and another one not registered. As such these agreements will be treated differently at the time of conveyance in favor of the society. Here it is necessary to clarify that stamp duty was applicable even prior to 10-12-1985, but there was an option for payment at the time conveyance. However, for conveyance executed up-to 16-3-1988, residential flat up-to 650 sq ft carpet area was fully exempted from stamp duty and area up-to 1000 Sq ft was exempted up-to 60% of the stamp duty. Because of this provision there is a general notion that there was no stamp duty prior to 10-12-1985.

Now at the time of conveyance, stamp duty liability of all the present members must be cleared. For the liability of registered agreement on Rs. 5 Stamp paper, prior to 10-12-85, the market value (not agreement value) as on the date of agreement will be considered, as purchase price agreement value only, because market value concept was not there at that time. The document which is not registered will be valued as per present market value, subject to depreciation, and stamp duty will be charged, in all the cases, as applicable today.

Regarding Stamp Duty on documents executed on 10-12-1985 and there after, all such documents must be registered after paying the stamp duty, failing which penalty at the rate of two times (not 10 times) of the deficit stamp duty will be charged. During amnesty this penalty is maximum Rs. 1000 only. At the time of conveyance they will not be required to pay any duty again, against their respective flats.
Comparative chart of stamp duty liability on agreement dated 1981 is as per Table-B.
From this example it is clear that if the document is registered, stamp duty will be Rs. 2,200 only against Rs. 1,29,000 for non registered document.

The Amnesty has come primarily to facilitate deemed conveyance of the Co-operative Housing Society, for which it is necessary that all the members of the society must clear the Stamp Duty liability of their respective agreements. Since there are many members who have not paid their share of Stamp Duty, this is an opportunity to clear the same at a normal penalty for everlasting peace.

War offing in Housing Finance

Housing finance war is in offing with new players wanting to explore new markets, old foxes are sustaining their brand and connection within the industry by pumping in funds through venture capital and asking for monopoly. New entrant like Tata Capital, L&T Home Finance, Relaince Home Finance and few NBFC also into foray to capitalise housing finance market.

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The recession in the industry and huge opportunity makes housing finance a lucrative business. Interest rates and subvention schemes have made the war more deadly. SBI, one of the old player now wants real estate brokers to become its agent and bring in the business where as ICICI still banking on tie-ups with builders.

In all, the customers are likely to get advantage of the home finance products and Real Estate industry as whole.

Affter the RBI rate cut Banks Have Reduced their Lending Rates

Reserve Bank of India’s initiative to cut repo rates for two consecutive monetary policy has proven beneficial for home buyers, as following the rate cut almost every leading banks and housing finance companies have reduced their interest rates lending rates and home loans.

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With effect to the rate cuts banks and HFCs have reduced their rates by 15-25 bps. State Bank of India, HDFC lowered their rates by 15 bps, SBI is providing a rate of 9.85 per cent to women home loan borrowers and 9.90 per cent for other borrowers, whereas ICICI Bank reduces it by 25 bps at rate of interest of 9.90 per cent.

Axis Bank lowered interest rates by 20 bps to 9.95 per cent home loan interest rate, while Kotak Mahindra Bank announced 15 bps cut in the base rate their current rate is 9.85%, Lakshmi Vilas Bank announced cuts of 15 bps. United Bank and Union Bank of India  have lowered their base rates by 25 bps each.

Even small housing finance institutes have announced rate cuts, Indiabulls Housing Finance (IBHFL) reduced interest rates of its home loans by 20 basis points to 9.90% and Sundaram BNP Paribas Home Finance has also announced a reduction of 20 basis points in its prime lending rates.

The March month consumer price index-based inflation (CPI) stood at 5.17 percent from 5.37 percent in February 2015, the CPI eased to a three month low. The experts predict this can lead to a further announcement for rate from the central bank.

In a statement Chandrajit Banerjee, director general of the Confederation of Indian Industry (CII), had asserted that, “Inflation has in declined when compared to the previous month, This should persuade the RBI to resume its rate easing cycle to support growth without being too concerned about the impact on inflation.”

If the RBI implements further rate cut in the next monetary policy announcement more banks and HFCs can follow the motion and reduce their lending rates.

By March 2016 Indian Market will Be Improve Fitch Assumes

Global rating agency Fitch in a report claimed that property market in India is likely to be improved by the end of March 2016, following the upturn in the country’s investment and reduction in interest rates, they also mentioned that this will provide relief to the debt-ridden developers.

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“The property development sector (will) be a key beneficiary of reductions in housing loan interest rates by several domestic banks in April 2015,” the agency said, adding that they would also boost credit growth.

Further they added, after Reserve Bank of India’s initiate to reduce the key policy rate
Besides, the Reserve Bank has reduced the key policy rate by 0.50 per cent since January, prompting commercial banks to cut interest rates for home loan and other borrowers. Many banks have reduced their interest rates on home loans.

“We expect property developers with a greater exposure to the middle and lower income segments to benefit more from lower domestic interest rates,” it said, adding that developers with a greater mix of high-income customers, such as Lodha Developers and Indiabulls, will be less impacted because their customers are less sensitive to market interest rates.

Both the companies, it said, would meaningfully reduce the portion of debts by end-2016.

The rating agency observed that “the process of reducing leverage (debts) stalled in 2014 due to weak sales and slower cash collections on properties that were sold towards the end of 2014 and in early 2015, as developers introduced easy payment schemes to stoke demand.”

Earlier in the month, Fitch raised its forecasts for India’s GDP growth to 8 per cent for the current fiscal, up from 7.4 in per cent in 2014-15, and 8.3 per cent for 2016-17.

Fitch estimates that around 20 per cent of the sector’s sales over the last two fiscal quarters were financed by easy payment plans and observed “the longer cash collection cycle will continue to weigh on developers’ balance sheets in the near term.”

Sanction of Building Plans are now Leads by Maharashtra

Maharashtra leads the list with 7 of its urban bodies going online followed by Kerala with five. Total 27 urban bodies including municipal corporations and urban development authorities have put in place Online Building Plan Sanctions that help in reducing the time taken for according necessary approvals. This was informed by the Minister of State for Urban Development Shri Babul Supriyo.

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Municipal Corporations who have done so include those of : Greater Mumbai, New Delhi Municipal Council and Municipal Corporation of South Delhi, Pune, Pimpri-Chinchwad, Coimbattore, Indore, Nagpur, Solapur, Amravati, Thiruvananthapuram, Kollam, Kochi, Thrissur, Kozhikode, Ujjain, Gwalior, Ulhasnagar, Hubil-Dharwad and Lavasa.

The Development Authorities to have done so are : New Town Kolkata Development Authority, Chennai Metropolitan Development Authority, Haryana Urban Development Authority, Bhubaneswar Development Authority, Hyderabad Metropolitan Development Authority and Jaipur Development Authority.

Shri Babul Supriyo further informed that the Ministry of Urban Development has advised the state governments to streamline the building sanction procedures so as to accord clearances in a month’s time.