PM backs lower stamp duty on property deals

Prime Minister Manmohan Singh today called for lowering stamp duty on property deals in order to stem black money flows into the realty sector.

He said lowering stamp duty would help bring in more transparency in property deals.

"I think as far as black money in real estate is concerned, unfortunately that is a reality and one way out of this would be to lower the stamp duties," Singh said at a conclave organised by India Today in New Delhi.

"Reduction of stamp duty will benefit both consumers as well as developers. Currently developers pay stamp duty while registering the land and consumers again pay stamp duty while taking possession of the flats," he said.

He said rationalising of duties to around 4 per cent will also help discourage realty firms from under-quoting property values, thereby, checking revenue loss to the government.

Real estate sector also welcomed the prime minister's view saying it will bring in more transparency.