Immovable properties can now be transferred to blood relatives without any stamp duty.

All the immovable properties such as; land, house or flat can now be transferred to blood relatives or children’s without any stamp duty on registration. It is expected that this will be the major relief for millions of families who are living in Maharashtra, as now onwards they don’t have to pay 5% of the ready reckoner rate of the property as stamp duty.

Revenue minister Eknath Khadse, make the announcement by saying that, an affidavit on a Rs 100 stamp paper would be sufficient. He later changed his statement by stating that now government no longer deals in Rs 100 stamp paper for property matters, so you need to pay Rs. 500. While in other decisions he announced in the House on Wednesday, that those who own 500sq ft or smaller homes than this, now they do not have to pay the increased property tax and now government will allow them to twice the transfer of development rights to a landowner in lieu of land surrendered for a public amenity.

For the reply on a discussion on the budgetary allocation for urban development department, Chief Minister Devendra Fadnavis stated that the government is framing a new policy, as TDR will be indexed to the ready reckoner rate to, it will prevent them to earn a windfall from the use of TDR of one area in another. The main aim of decision is to increase the TDR as it was taken as the new Land Acquisition Act has increased compensation, whereas; the RR rate of the area where it is being utilized will apply, the more he added.

Khadse state that the decision to waive stamp duty on immoveable property being passed to heirs will cost the exchequer Rs 350 crore annually, as a construction amenity TDR or incentive TDR will be offered to a land-owner in addition to the regular TDR if he develops an amenity and hands it over to the local body. For land and other property, the ready reckoner rate has gone up considerably even if the owner does not sell them at that rate in the market.

For this we have received a large number of complaints from every part. They have been demanding to know that why should they need to pay a huge amount to government while transferring a property to their own blood relatives or children’s. Hence, Government of Maharashtra has decided to do away with the stamp duty,” he said.

The world has truly become a global village! If you have got some disposable amount, you can even own a real estate asset in any country of your choice.

What looked impossible earlier is now possible as the Reserve Bank of India (RBI) allows resident Indians to remit money abroad for the purchase of immovable properties.

As per the new RBI directive, banks are allowed to remit up to US$125,000 (around Rs 75 lakh) every financial year for any permitted current or capital account transaction, or a combination of both. The money can be used for purchasing immovable property outside India.

Finance wizards point out that the new norms might be helpful for the state as it would be easier for you to spot properties due to their significant overseas connection. “The RBI’s decision to allow resident Indians to acquire immovable properties outside India is encouraging. Real estate has always elicited immense interest among Indians. So, relaxation of the norms will encourage them to remit more money outside the country.

This measure will also help strengthen the Indian economy as the income from such properties will then find its way back to the Indian economy regularly, adding to the foreign exchange reserves,” said Promoth Manghat, vice-president, Global Operations, at UAE Exchange. The Liberalised Remittances Scheme (LRS), notified by the RBI, allows residents to acquire and hold shares, debt instruments or other assets outside India without the prior approval of the RBI. In August last year, the RBI had reduced the ceiling from US$200,000 to US$75,000 per person in a financial year.

“Real estate prices are yet to revive in many parts of the world, except in a few places. The new RBI norms came at the right time. People who have a considerable amount of disposable money, can now look at foreign countries to buy properties,” said G Sanjeev Kumar, financial advisor and managing director at Progno Financial Planning Systems Pvt Ltd.