1 percent LBT on property abolished

A government notification issued by Inspector General of Registration on LBT has ended all confusions over payment of one per cent Local Body Tax (LBT) by property buyers as stamp duty. The State government had increased stamp duty from April 1, 2013.

As per the notification, property buyers, whose sale agreements are registered before April 1, 2013 but who had their deeds executed after that date, will be benefited. If Stamp Duty has been paid on any sale agreement and registered before April 1, 2013, the buyer has to just pay Rs. 100/- as fees towards Stamp Duty. Such buyers need not pay any LBT on the purchase of the property. There was lot of apprehension among the buyers that they might have to pay LBT. The notification will bring relief to many property buyers who made sale agreements before April 1 2013.

The on-line payment of Stamp Duty and registration fees is proving beneficial as online payments will reduce frauds and ensure accountability of funds in government treasuries. Department of Registration and Stamps looks after registration of documents and collection of Stamp Duty through more than 470 sub-registrar offices across the State. More than 23 lakh documents were registered in 2011-12 under the Government Receipt Accounting System (GRAS). IGR is promoting on-line payments in place of physical payments, franking and E-secured bank and treasury receipt (ESBTR).