Govt denies hiking stamp duty, says gap in communication

In a move that may embarrass the state government, it has done a volte-face on the cabinet's decision to hike the stamp duty on gift deeds of immovable property.

The Shiv Sena had criticised the decision taken on Tuesday and had threatened to hit the streets in protest. Chandrakant Patil, Revenue Minister, told DNA that they had not changed the present system wherein a nominal amount of just Rs 500 is levied on such transactions.

Sources said the 2015 amendment had reduced stamp duty on gift deed transfers by and from a father and his children, a grandchild and his grandparents and a widow and her in-laws. However, transactions between some relations like brothers and sisters, husband and wife had been outside the purview of this exemption and continued to attract a duty of two per cent of the ready reckoner (RR) rates — this has been hiked to three per cent. Not only did this lead to a revenue loss of Rs 500 crore, there were also complaints that many transactions were being touted through this both in Mumbai and Thane. There were concerns about rights of some inheritors being neglected while registering the property too.

"The decision taken two years ago remains unchanged," Patil told DNA.

However, the press release issued by the Chief Minister's office on Tuesday, clearly mentioned that stamp duty at the rate of three per cent on the prevailing RR rate would apply on gift deeds of property to family members or to descendants or forebearers.

"There was a mistake in understanding the government's language... there is nothing wrong with the press note," said Patil.

The minutes of Tuesday's decision are to be confirmed at the next meeting of the state cabinet when the changes and clarifications are expected to be made.

"There is confusion in the state government," said a Revenue Department official, adding that for now, the earlier amendment stays.