Maharashtra may introduce new stamp duty amnesty scheme   

November 18, 2010

The earlier amnesty scheme started in June 2008 and ended in March 2009; however, the current political turbulence in the state might delay the government’s decision

The Maharashtra government is likely to announce a stamp duty amnesty scheme soon for those property buyers who evaded stamp duty on their property agreements, a source familiar with the development told Moneylife.

“The revenue department may announce the stamp duty amnesty scheme anytime as the draft of the scheme was ready about one and a half years back, but due to political and bureaucratic problems, the scheme was delayed,” said the source.

Government officials were not available for comments.

In June 2008, the state’s revenue department introduced the ‘Stamp Duty Amnesty Scheme 2008’, under which, only flats and offices were covered and a buyer who evaded paying stamp duty could pay up the amount along with a nominal penalty.

But under this proposed new amnesty scheme, all types of properties are likely to be covered.

“Two years back, the Stamp Duty Amnesty Scheme 2008 covered only flats and offices; industrial galas and shops were not covered. The department had said that it would cover these segments (industrials galas and shops) in the next amnesty scheme. The draft of the amnesty scheme for industrial galas and shops was ready around two years back. Later on, the department decided to cover every type of property like flats, shops, industrial galas, commercial properties, land, office, and transfer of development rights (TDR) in the scheme. However, the Assembly election occurred at the same time, and the amnesty scheme could not be passed,” added the source.

According to the current law, if stamp duty is not paid on a property, the penalty starts from 2% per month — subject to a maximum of 200%. For example, if a buyer has not paid stamp duty of Rs50,000 for his property in 1996, the maximum amount he can be made to cough up now would be Rs1,50,000.

Due to political turbulence in the state, the scheme has been delayed over the past few months. “The scheme was ready and it was going to be announced any time, but chief minister Ashok Chavan was asked to step down. Now, the new chief minister will again review the scheme, so the scheme could be delayed,” added the source.

“The penalty during the period of the (new) amnesty scheme could be in the range of Rs200 to Rs 1,000,” said the source.

The earlier amnesty scheme started in June 2008 and ended in March 2009. — Moneylife Digital Team