Stamp duty on 17 items set for steep hike in Punjab

Stamp duty on 17 items is set to increase steeply in Punjab as the state government Wednesday approved an ordinance to amend a law to pave way for revision of rates with a view to mobilising additional resources.

The Punjab Cabinet Wednesday approved an ordinance to amend Schedule 1-A of the Indian Stamp Act, 1899, to enable increase in the stamp duty rates.

Stamp duty rates for 17 items of the 65 items in Schedule 1-A stand to double following the amendment, which the Cabinet found to be essential to boost the revenue receipts of the state, an official spokesperson said here.

There are 65 items in the Indian Stamp Act, 1899 on which stamp duty is levied, out of which stamp duty has been revised in the Cabinet only on 17 items, said spokesperson.

Among items on which the stamp duty has been hiked are adoption deed, affidavit (including an affirmation or declaration in the case of persons by law allowed to affirm or declare), agreement or memorandum of an agreement, relating to sale of a bill of exchange, relating to the sale of a government security or share in an incorporated company or other body corporate, relating to the sale of immovable property, article of association of a company, when the authorized capital of the company does not exceed one lakh. Punjab currently raises Rs 50 crore from stamp duty, which would go up by Rs 100-150 crore with the increase in rates.

The Cabinet found it essential to hike the stamp duty on 17 items in order to boost the revenue receipts of the state.

However, the stamp duty on registration of property remains untouched.

The Cabinet, under the chairmanship of Chief Minister Capt Amarinder Singh, noted that the new rates were higher than those of neighbouring Haryana but found it imperative to increase the rates to generate the much-needed revenue for the state.

The Cabinet also noted that the last revision in the rates was done in 2009, the spokesperson said. The ordinance would now be sent to the Legal and Administrative Affairs Department for its finalization and later to Punjab Governor for its approval.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

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