CHANDIGARH: The high rate of stamp duty on all types of credit documents proving to be a stumbling block in the credit granting process, the Haryana government has decided to reduce it. CHANDIGARH: In good news for borrowers in Haryana, the government has decided to reduce stamp duty on loan contracts to just $100. Under the Indian Stamp Act of 1899, stamp duty on the Memorandum of Understanding currently stands at 2,000 Us-Us-Euro. The Amendment Act amends the Schedule 1-A Stamp Duty Act in 1899 for the revision of stamp duty, which must be paid on various instruments/documents in the state, including the following: The Haryana cabinet decided on 6 July to reduce stamp duty for loan contracts or agreements under the Indian Stamp Act from 1899 to Rs 100 from Rs 2,000 Rs. Stamp duty will also be paid to women beneficiaries of Haryana Women Development Corporation programs, beneficiaries of economically weaker sections under the Pradhan Mantra Awas Yojana-Urban and National Urban Livelihood missions, and below the poverty line for families sponsored by the Haryana Scheduled Castes Finance and Development Corporation for bank loans, he said. Because of the impact of the stamp duty increase on borrowers, the Committee of State Level Bankers (SLBC) opened the matter to the public official. At a meeting today Dr. Rajesh Yaduvanshi, Chairman, State Level Bankers Committee and Executive Director, Punjab National Bank, said stamp duty was on the top side for people in the EMS category and low income group. He called on the Haryana government to intervene in this case, as it concerns ordinary people, the rural masses and EMS people. An administration spokesman said stamp duty would be paid to small and small farmers for loans of up to 1.60%. Given that high stamp duty on all types of credit documents is proving to be a stumbling block in the credit process, the Haryana government has decided to reduce it. Reducing levies would help people in the economically lower sectors (EMS) and low-income groups benefit from DRI credits (differential rates), two-wheel loans and loans against bank deposits and recurrent deposits.
The stamp duty of Rs 2,000 on different types of loan contracts which, under the Indian Stamp Act of 1899 in Haryana, which accepted the request, assured Haryana the head of the Secretary General (Finance – Planning) TVSN Prasad to bankers that the state government would work on the terms and reduce the tax on stamps. As the increase in stamp duty hurts small borrowers, Yaduvanshi continued to propose to reduce them to all types of credits. He proposed that there be no stamp duty for all types of loans up to 5 Lakh Rs or an advance on fixed sums or recurrent deposits. He asked the secretaries of state to set 1,000 stamp duty applications for loans of 5 lakh to 10 Lakhs and 2,000 for loans of 10 Lakh. The Haryana government increased stamp rates for various instruments under the Indian Stamp (Haryana Amendment) Act, 2018 CHANDIGARH: The Haryana government decided on Friday to pay stamp duty of Rs 2,000 on various types of credit contracts under the Indian Stamp Act, 1899, to allow relief for small and marginal and weaker farmers in society.