PremiumCHANDIGARH : In good news for borrowers in Haryana, the state government has decided to cut stamp duty on loan agreements to just ₹100. Under the Indian Stamp Act, 1899, stamp duty on memorandum of agreement is charged at the rate of ₹2,000 at present.
The decision was taken a cabinet meeting yesterday. A government statement said the move will benefit all categories of the society.
The reduced stamp duty shall apply to all loan agreements which are executed by such borrowers in favour of banks, financial institutions, financial development corporations, among others.
The cut in stamp duty will secure the interests of small and marginal farmers, agriculturists as well as those who have availed small loans under differential Rate of Interest (DRI), vehicles loans, persons willing to avail locker facility and those who seek to avail loans under schemes of marginal loans, an official statement said.
The Cabinet, under the chairmanship of Chief Minister M L Khattar, has also allowed compounding of challans issued by Haryana Police for violations of provisions of Motor Vehicles Act, 1988 during the coronavirus-induced lockdown restrictions in the state.
Haryana Police had impounded around 6,500 vehicles during March 24 to May 31 for violations of provisions of Motor Vehicles Act, 1988.
Keeping in view the grievances of public in times of COVID-19 pandemic, it has been decided that a maximum penalty amount of ₹500 for two-wheelers, ₹1,000 for cars and jeeps, and ₹2,000 for transport vehicles will be charged as compounding fees from these three categories of vehicles against whom no FIRs have been registered (for violation of lockdown norms), it said.
