On a move to bring prosperity through governance reforms in Punjab, the state government has brought in major changes in the provisions related to land deals and transactions in addition to streamlining the records through digitalisation.
Zero fee transfer of property between spouses and blood relations
Carrying forward its people friendly reforms the government has waived off registration fee charged for transfer of property between spouses and blood relations in urban and rural areas.
The initiative announced in May 2014, has helped curtailing the shady land deals and encouraging families to legally transfer property between blood relations and spouses. This would include father, mother, son, daughter, brother, sister, grandson and granddaughter.
Besides, the government also decided to do away with the social security fund, social infrastructure cess and stamp duty on such transfers, through a notification. Earlier, a person desirous of transferring his property directly to his grandsons was liable to pay 5 per cent stamp duty. In case of women the duty was 3 per cent of the cost.
According to the State Revenue Minister Bikram Singh Majithia, the decision is in accordance with the government’s desire to encourage people to go in for legal registration of property instead of adopting ultra vires measures which had only led to intra-family disputes.
“This decision fulfils the long-pending promise of the SAD-BJP government regarding zero transfer fees on such transfers. We have been working to simplify revenue acts, reduce legal disputes while encouraging people to adopt legal and not the extra constitutional means in the transfer of land and properties,” he said.
People have been refraining from effecting legal transfer of properties between blood relation in view of registration fee and stamp fee in the past leading to disputes in the family.
“I am happy that this zero fee transfer of property has been approved by special efforts of Chief Minister, who took care to follow up this issue at every level clearing all legal hurdles leading to its fructification,” he said.
Carrying forward its reforms spree, the state government has also remitted the stamp duty for purchasing land to set up a project duly approved by the Punjab Energy Development Authority, under New and Renewable Sources of Energy Policy, 2012. Under the provisions, no registration fee is to be charged when executed by or in favour of any person or company or firm or society.
In a bid to make the process of land dealing more people friendly and avoid frauds in the transactions the government has introduced e-stamping system. Effective from October 2015, the user friendly and cost effective initiative of state government will help in online registration of lands in a transparent and secure manner apart from making the process hassle free mean. As per the new initiative all mutations of deeds and registrations of land above Rs 50,000 are to be done under e-stamping system. The move has helped in making the revenue transactions citizen-centric and speedy, thus giving a fillip to the governance reforms.
Land/property records computerised
Before launching the system the government issued instructions to all the district to take measures to computerise the revenue, land and property records. The government had initially launched the system on experimental basis in three districts of SAS Nagar (Mohali), Jalandhar, and Bathinda. After it was found feasible and effective, it was decided to launch the system in the entire state.
With the introduction of e stamping Punjab has joined 10 other states and Union Territories. The system is already being implemented in Uttarakhand, Uttar Pradesh Gujarat, Karnataka, NCR Delhi, Maharashtra, Assam, Tamil Nadu, Rajasthan, Himachal Pradesh and the union territories of Dadra and Nagar Haveli, Daman and Diu, and Puducherry.
Benefits of e stamping
The implementation of e-stamping policy would benefit residents in a number of ways making procedure of land deals and related transactions hassle free. Under the new system, e-stamp certificates can be generated immediately, which would have a unique identification number. One would be able to check the authenticity of these certificates from anywhere with the help of inquiry module. Besides no specific denomination would be required for e-stamping.
Central agency to monitor
The state government has signed an agreement with Stock Holding Corporation of India (SHCIL), a central agency responsible for record keeping, for implementation and monitoring of e-stamping system. The agency would be responsible for overall e-stamping application operations, maintenance user registration. It has also been assigned the task of setting up authorised collection centres for issuing certificates.
Other measures for real estate in budget 2016
In order to give some breather to the real estate sector, the government has announced 50% rebate on EDC, CLU and licence fee for affordable housing projects. It has also announced a rebate of 25% on all new housing sector projects, 20% cut in stamp duty on the first purchase conveyance deed of all new flats and reduction of 15% in collector rates for assessing stamp duty.