1% LBT on Gift & Sale of Property in Pune & Pimpri Chinchwad

Local Body Taxes meaning and applicability –

LBT is Local Body Tax levied by the Pune & Pimpri Chinchwad Local Government Bodies such as Municipal Corporation, Municipal Council, Grampanchayat, etc. The ‘LBT’ is applicable on the property transfer by way of Gift Deed, Agreement to Sell, Sale Deed, Deed of Assignment, etc. in Pune and Pimpri Chinchwad. Right now 1% LBT is applicable on the Government Property Valuation or the Transaction Value (whichever is higher). 

Besides the Regular Stamp Duty, the Registration Department collects this tax in the form of Stamp Duty.

Examples –

LBT on Gift Deed in Pune and Pimpri Chinchwad –

Example 1 – Suppose, a flat is owned equally by husband and wife, now husband wants to gift his share to the wife. The government Value of the flat is 60 Lakhs. In this situation, the LBT will be Rs. 30,000/-.

Example 2 – Father wants to gift a property to his daughter. Father is the 100% owner of that property. The Government Value of the Property is Rs. 50 Lakhs. In this situation, LBT will be Rs. 50,000/-

LBT on Agreement to Sell and Sale Deed in Pune and Pimpri Chinchwad –

Example 1 – The property owner and the buyer have agreed to do a Sale Deed for the consideration value of Rs. 75 Lakhs. The Government Value of the property is Rs. 65 Lakhs. In this situation, LBT will be Rs. 75,000/-.

Example 2 – Parties decided to do a property sell transaction for the consideration of Rs. 60 Lakhs and the Government Value of the property is Rs. 85 Lakhs. Rs. 85,000/- LBT will be payable.

Useful link – http://igrmaharashtra.gov.in/writedata/PDF/Local%20Tax%20lbt.doc.pdf