More e-stamping property buyers will have to quote PAN

                                                                                         

PUNE: Investors who buy property in Maharashtra will have to compulsorily quote their permanent account numbers (PAN) if they use the e-stamping facility and pay a stamp duty of over Rs 25,000 on a single transaction. This may well become the norm in other states that introduce e-stamping.

E-stamping is a facility that allows people to stamp their documents over the internet. The stamp duty can be paid through a credit card. The state government is set to roll out e-stamping in Mumbai, Thane and Pune — which account for over 90% of the realty deals — by October this year. Down the line, e-stamping will replace manual stamping (or franking).

“Individuals applying for stamp duty certificates electronically will have to furnish their PAN in property transactions if the duty exceeds Rs 25,000”, said Om Prakash Gupta, Inspector General of Registration and Controller of Stamps, Maharashtra.

PAN is a ten-digit alphanumeric number issued by the income tax department. Each individual has to quote this number in his income tax return. Under the income tax law, it is also mandatory for individuals to give their PAN in select financial transactions including purchase or sale of property valued at over Rs 5 lakhs.

However, quoting PAN in property transactions over Rs 5 lakh is not compulsory under the registration laws enacted by various state governments. This means an individual cannot be denied registration of his property if he does not furnish his PAN.

The centre has been asking state governments to consider bringing their registration laws in sync with the provisions in the income tax legislation. This could curb money laundering through illegal property transactions. Maharashtra will be among the first states to attempt such synchronisation.

The maximum stamp duty in the state is 5% of the value of the property. So a property valued at Rs 5 lakhs will attract a stamp duty of Rs 25,000. Making it mandatory for an individual to quote his PAN at the time of paying stamp duty (electronically) will check revenue leakages.

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Source: IndiaRealEstateblog

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