Srinagar, Feb 29 (IANS): In a major relief to traders, the Jammu and Kashmir government on Friday ordered remitting of stamp duty on documents for fresh/additional loan for borrowers whose accounts have been restructured due to the unprecedented situation in the Valley since August 5 last year following the abrogation of Article 370.
The J&K finance department has issued a notification to remit stamp duty on fresh loans for borrowers whose accounts have been restructured.
"In exercise of the powers conferred by Clause (a) of Section 9 of the Stamps Act, the government hereby directs that there shall be remission of duty chargeable under the said Act in case of instruments/documents executed between the borrowers and the tending financial institutions on fresh/additional loans advanced by such institutions to the borrowers whose accounts have been restructured upon authorisation by Reserve Bank of India (RBI) in terms of RBI's master directions dated October 17, 2018, (on relief measures by banks in areas affected by natural calamities) due to unprecedented situation in Kashmir Valley since August 5, 2019," read the notification issued by Financial Commissioner Arun Mehta.
The notification said that branch heads of the lending financial institutions shall certify that the loan accounts of the borrowers who are being extended the fresh/additional loans have been restructured in terms of RBI's master directions of October 17, 2018 due to the unprecedented situation in the Valley.
The notification has come into force with immediate effect and will be valid up to one year from the date of issuance.
J&K has suffered massive economic losses due to the lockdown and communication blockade after the abrogation of Article 370 on August 5, 2019.
The Kashmir Chamber Of Commerce And Industry (KCCI) in its 'Economic Loss Assessment Report' released in December 2019 said that Kashmir's economy has suffered a loss of Rs 17878.18 crore since the scrapping of Article 370 which granted special status to erstwhile state of Jammu and Kashmir.