HC: Stamp duty relief for landowners

The Landowners have to no longer pay stamp duty if they retain some flats or shops after getting their property developed by a builder/developer.

 

CHANDRAKANT NANEKAR vs THE STATE OF MAHARASHTRA AND ANR. (Bombay HC)

Dated: 1^st March 2013

 

Recently Bombay High court heard a PIL filed by petitioner seeking a declaration that land owners were not required to pay stamp duty on flats and shops retained by them after getting their property developed by a builder/developer. The lawyer in return said that retaining some commercial and residential premises after getting your own property developed by any developer or builder cannot be treated as conveyance as envisaged under the Bombay Stamp Act, 1958 and therefore no stamp duty can be levied in such a transactions. Adding further he said, stamp authorities in Maharashtra were insisting that landowners pay stamp duty on premises retained by them and cited a reply received from stamp authorities at Pune said the duty as per Article 25(b) and 25(d) of the Bombay Stamp Act was payable for commercial and residential premises.

 

Before high court, The state government said that a circular will be issued in next two weeks Ld. AGP, submits that the Inspector General of Stamps will issue appropriate circular to all concerned to follow the legal position expounded by this Court in the above said case. That circular be issued within two weeks from today