Patil slashes stamp duty on securities

Mumbai, March 21 | Updated: Mar 22 2006, 05:30am hrs
Maharashtra finance minister Jayant Patil on Tuesday proposed to rationalise the stamp duty structure on stock market transactions and purchase of residential property in his Budget for 2006-07.

Maha Budget
Jayant Patil presented a revenue surplus budget of Rs 305.85 cr ore for 2006-07
The govt hopes to rake in Rs 5,000 cr from stamp duty collections, a 23% hike
Presenting a revenue surplus budget of Rs 305.85 crore for 2006-07, Mr Patil proposed full exemption from stamp duty on sale-purchase of securities by brokers/investors residing outside the state, reduction in stamp duty imposed on sale-purchase of securities by brokers on self account from 20 paise to 10 paise for every Rs 10,000, and waiver of duty on transactions in government securities on principal-to-principal basis.

With the state capital Mumbai accounting for 70% of all stock market transactions in the country, the state hopes to mobilise Rs 5,000 crore, a 23% increase over the previous year in stamp duty collections, despite the cut in rates. The move will also give a fillip to the Centres plan to turn Mumbai into a regional financial hub.

In view of the real estate boom, the state has proposed a cut in the stamp duty to a flat Rs 100 from the existing level of 0.5% on sale or purchase of flats and plots in co-operative housing societies for the first Rs 2.5 lakh.

In addition, in order to promote trade, industry, banking and the housing sector, the finance minister has proposed a reduction in stamp duty on deposit of title deeds, mortgages of movables, pawn, pledge and hypothecation deeds to 0.1% from 0.5%.