Bhubaneswar: The Odisha Cabinet on Wednesday approved amendments to the Indian Stamp Act, 1899, to ease the financial burden on apartment owners and simplify the registration process under the Odisha Apartment (Ownership and Management) Act, 2023.
As per the existing law, the Association of Allottees was required to pay 5% stamp duty for execution of the deed of conveyance to transfer common areas and facilities in its favour at the time of registration of the first deed. This resulted in a significant financial load on associations and created hurdles in apartment registration.
In order to address this, the state government has decided to bring an ordinance amending the Indian Stamp Act, 1899. As per the proposed change, the Association of Allottees will now pay only a nominal stamp duty of Rs 50,000 for execution of the deed of conveyance for transfer of common areas and facilities, Chief Secretary Anu Garg told reporters after the Cabinet meeting.
The amendment also revises the stamp duty structure for individual buyers. Earlier, stamp duty was collected in three slabs of 3%, 4%, and 5% depending on the value of the apartment at the time of registration.
The new provision mandates a uniform stamp duty of 5% for all apartment registrations. At the time of transfer of an individual apartment unit, 5% stamp duty on the unit along with its undivided proportionate share in the common areas will be collected during execution of the individual deed of conveyance in favour of the allottee.
