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Blaming use of black money in real estate to archaic laws, India’s largest realty firm DLF today said the Prime Minister, Mr Manmohan Singh’s emphasis on reduction of stamp duty will help in cleansing the sector.
“Real estate industry is the least reformed. Wherever reforms have not taken place, parallel economy exists... This industry’s laws, regulations everything is archaic. No reform has taken place since Independence,” DLF Chairman, Mr K P Singh said at the India Today Conclave here.
He, however, said although changes are being undertaken, it is “not happening at the pace that I would like to see”.
Yesterday, the Prime Minister, Mr Manmohan Singh had said stamp duty needs to be reduced in order to check flow of black money into the real estate sector.
The Prime Minister’s statement was welcomed by private players in the sector, saying it would help cleanse illegal funding.
Stamp duty is a property tax, to be paid in almost every deal at a prescribed rate on the transaction value or calculations based on circle rate, whichever is higher. It varies from state to state.
This particular tax varies from around 4 per cent in Mumbai to about 13 per cent in Kerala. Haryana charges 6 per cent as stamp duty on properties, while it is 8 per cent in Uttar Pradesh. Most of the states charge around 6-8 per cent.
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