On Tuesday, the Karnataka government announced a reduction in registration stamp duty from 5 percent to 3 percent for properties worth Rs 21 lakh to Rs 35 lakh to help the ailing real estate sector. The state government has also brought down the stamp duty on the properties costing up to Rs 20 lakh from 5 percent to 2 percent, for those who are getting registered for the first time.
The decision was taken during a meeting chaired by Chief Minister B S Yediyurappa to review the progress of the Stamps & Registration department.
It is estimated that due to the lockdown in the wake of the COVID-19 outbreak will bring down the revenue target of the Stamps and Registration department Rs 3,524 crore for the financial year 2020-21. The revenue target for 2020-21 is Rs 12,655 crore.
The reduced stamp duty is hoped to increase the volume of registrations of lower and middle-income class homebuyers. It is largely expected to benefit homebuyers in the cities of Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Kalaburagi and semi-rural areas.