Home » Business » Maharashtra Govt Temporarily Reduces Stamp Duty to 2% to Boost Demand in Real Estate Amid Slowdown
1-MIN READ

Maharashtra Govt Temporarily Reduces Stamp Duty to 2% to Boost Demand in Real Estate Amid Slowdown

News18.com

Last Updated: August 26, 2020, 21:43 IST

Image for representation

Image for representation

Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to buy properties during the pandemic.

In a bid to encourage buying in the retail sector hit by COVID-19, the Maharashtra government on Tuesday temporarily reduced stamp duty on housing units from 5 per cent to 2 per cent until December 31, 2020.

According to a report by Moneycontrol, stamp duty from Jan 1, 2021, until March 31, 2021, will be 3 per cent. The decision was taken at a state cabinet meeting held on Tuesday.

Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to buy properties during the pandemic.

“The move will benefit the customer and foster demand creation along with giving a stimulus to the allied industries coupled with employment generation. Whenever there has been a reduction in the stamp duty in the past, it has only lead to an increase in revenue in the government treasury, said Jaxay Shah, Chairman, CREDAI National.

RELATED NEWS

“This is a proactive measure taken by the government and was most needed. It will provide buyers an incentive to buy homes, give them the option to take a decision to buy,” Satish Magar, national president of the Confederation of Real Estate Developers’ Associations of India told Moneycontrol.

In Maharashtra, stamp duty charges are 5 per cent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 per cent in others. A 2-3 per cent reduction in rates will result in significant savings for home buyers.

The Maharashtra government on March 6 had announced that it is reducing stamp duty on properties by 1% for Mumbai, MMRDA Region and Pune for a period of two years.

Stamp duty rates in other major states largely hover anywhere between 5-8 percent, but they are lower in some states if property registration is executed in the name of a woman. Delhi, Uttar Pradesh, Rajasthan, Punjab, and Haryana offer relaxation in stamp duty for women buyers. The exemption on stamp duty ranges from 1-2 percent in different states.

first published:August 26, 2020, 21:21 IST
last updated:August 26, 2020, 21:43 IST