Chandigarh: Close on the heels of reduction in stamp duty on registration of property in urban areas, the Captain Amarinder Singh led Punjab Government has slashed circle rates in both urban and rural segments to further boost the beleaguered real estate sector in the state.
While the circle/collector rate in urban areas has been cut down by 5%, that in rural regions have been lowered by 10%, an official spokesperson announced after a high-level meeting chaired by Captain Amarinder.
The reduction will be applicable only to the basic land rates and shall not apply to the rates for the super structures, according to a notification issued by Karan Bir Singh Sidhu, Special Chief Secretary and Financial Commissioner, Revenue, said later.
The reduction in circle rates has been notified under Rule 3-A of the Punjab Stamp (Dealing of Under-valued Instruments) Rules 1982, as notified by a Punjab Government amendment notification dated 22nd November 2016. All the District Collectors have been issued the necessary directive on revision in the circle/collector rates, said the spokesperson
The move follows Captain Amarinder Singh’s concerted efforts to give a revive the realty segment in the state and comes two days after the state cabinet gave in-principle approval to cut down the circle rates. The cabinet had also decided to reduce stamp duty on registration of property in urban areas from 9% to 6% till March 31, 2018 by removing the 3% additional stamp duty chargeable as Social Security Fund for this period through an amendment to Section 3-C and schedule 1-B of the Indian Stamp Act, 1899, as announced by the Finance Minister in his Budget speech in the state assembly.
In another important decision to propel the reality segment, the Council of Ministers had also decided to grant exemption from 10% increase in Change of Land Use (CLU), External Development Charges (EDC) and License Fee (LF)/Permission Fee from April 1, 2017 to March 31, 2020 for real estate projects.
Prominent amongst others who attended the meeting included Health & Family Welfare Minister Brahm Mohindra, Irrigation and Power Minister Rana Gurjeet Singh, Rural Development and Panchayats Minister Tripat Rajinder Singh Bajwa, Media Advisor to Chief Minister Raveen Thukral, Chief Principal Secretary to CM Suresh Kumar, Chief Secretary Karan Avtar Singh, Special Chief Secretary-cum-Financial Commissioner (Revenue) K.B.S Sidhu, Principal Secretary to CM Tejveer Singh, Additional Chief Secretary Housing & Urban Development Vini Mahajan and Principal Secretary Finance Anirudh Tiwari.