The Odisha government has amended the Indian Stamp Act, 1899, in a major step to simplify apartment registration and reduce the financial burden on homebuyers. The decision, approved by the State Cabinet, is expected to remove long-standing confusion over stamp duty on common areas and speed up the registration process across the state.
The government said the reform will help apartment owners, reduce disputes with developers, and bring greater transparency to the real estate sector.
Earlier System
Earlier, the Association of Allottees was required to pay stamp duty at the rate of 5 per cent on the total value of common areas and shared facilities such as lifts, staircases, parking spaces, corridors, and other infrastructure. Since the value of these areas was often very high, the stamp duty amount became a major financial burden.
Example:
If the common areas of an apartment complex were valued at ₹5 crore, the association had to pay 5% stamp duty, which amounted to ₹25 lakh. This large sum had to be collected from apartment owners, often leading to disputes, delays, and incomplete registration of housing projects.
After Amendment
Under the amended rules, the Association of Allottees will now pay a fixed stamp duty of ₹50,000 for registering all common areas and shared facilities of an apartment complex. This one-time amount applies irrespective of the project’s size or value.
Example:
For the same apartment complex with common areas worth ₹5 crore, the association will now pay only ₹50,000 instead of ₹25 lakh, resulting in huge savings for apartment owners and faster registration.
Also Read: US to Indian Students: Visa Is a Privilege, not a Right
Stamp Duty During Flat Sale
The amendment also clearly defines stamp duty during the sale of individual apartments. When a flat is sold, stamp duty at 5 per cent will be charged proportionately on the buyer’s share of common areas, along with the apartment unit.
Example:
If a flat is priced at ₹60 lakh and the buyer’s share of common areas is ₹10 lakh, stamp duty will be calculated on ₹70 lakh.
The Odisha government believes the revised system will reduce legal disputes, encourage timely registration, and make apartment ownership more transparent and hassle-free for homebuyers across the state.
click on icons to connect with us through social media
