Gifting immovable property to blood relatives like children, husband, wife, sister or brother may get costlier with the state government deciding to levy a higher stamp duty on such gift deed transactions.
The Maharashtra Cabinet on Tuesday decided to levy stamp duty of 3 per cent at the prevailing ready reckoner (RR) rate on the registration of such documents which will be a significant rise from the nominal Rs 200 which was charged earlier.
It also decided to hike the stamp duty levied on the conveyance of immovable property in urban areas to 5 per cent and that for rural areas to 4 per cent. These decisions are expected to generate Rs 300 crore in additional revenues for the state exchequer. Two years ago, the state Cabinet had decided to reduce the stamp duty on gift deeds made in favour of blood relatives to just Rs 200 from the previous 2 per cent.
Revenue department officials said that the move to hike the stamp duty on gift deeds had come after complaints that a large number of transactions were happening through this route in Mumbai and Thane, thus depriving the state government of stamp duty revenue.
There were also complaints that the rights of some inheritors were being neglected while making out gift deeds. The state revenue department charged 2 per cent on gift deeds which were made out in the name of people who were not blood relations. This has also been hiked to 3 per cent.
Under the Registration Act 1908, registration of a gift deed of immovable property is mandatory within a stipulated time period.
Conveyance refers to the transfer of land or certain rights on the land. The state cabinet also approved a Rs 4,357.31 crore increase in project costs for six coal-based thermal power generation sets installed at Chandrapur, Koradi and Parli.
The three projects, which had already been commissioned, were expected to cost Rs 18,755 crore as per consents granted by the government in 2008 but this increased due to a rise in interest servicing, equipment and construction costs.