Karnataka cuts stamp duty on registration of homes to 3%

New Delhi: With the impending third wave of corona, the Karnataka government has cut stamp duty on registration of homes priced between Rs 35 and Rs 45 lakh to 3 percent from 5 percent.

In March 2021, Karnataka government had proposed 2 percent cut in stamp duties for houses priced Rs 35-45 lakh.

told reporters on July 22 after a Cabinet meeting that the stamp duty reduction would provide relief to home buyers.

"This will be applicable for the first registration of these apartments. There is also a proposal for upward revision of guidance value. This will be examined by the specific committee constituted for it," Karnataka's Law and Parliamentary Affairs Minister Basavaraj Bommai said.

The state government has also given green signal to construction of around five lakh homes in the coming 2 years at an estimated cost of Rs 8,000 crore. These would be for both urban and rural poor.

“With the Karnataka Cabinet's decision to reduce stamp duty on the registration of housing prices between INR 35-45 lakh from 5% to 3%, Karnataka joins the bandwagon of states which understand that this is by far the single-biggest housing demand booster. However, while the move is definitely welcome, it is not likely to give a significant boost to housing sales in Bengaluru similar to what was seen in Maharashtra, where the state cut stamp duty for homes across all budget segments and not just one category,” said Anuj Puri, Chairman - ANAROCK Property Consultants.

“The Karnataka government’s decision to slash stamp duty from 5% to 3% on registration of apartments below INR45lakhs will strike the right sentiment chord with affordable homebuyers, reduce their financial stress and foster demand creation for low- and mid-income housing. This welcome move will encourage first-time homebuyers to foray into homeownership, strengthen the circle of investment in the real estate sector, accelerate purchase decisions and at the same time boost the confidence of real estate developers in India’s IT Capital who have been affected by piling inventory and slow sales,” said Rahul Purohit, National Sales Head, Square Yards.