The reason behind putting back 5% stamp duty on property registrations by the Maharashtra government
On Wednesday, March 31, 2021, the Maharashtra government decided that they would not extend the two percent waiver on the property registration from April. They are also restoring the previous system of five percent stamp duty on property registrations from starting of April 2021.
Before we go into details, let us explain to you what stamp duty is.
It is a type of tax imposed on the sale of property or property ownership by the state government. The duration of this at the time of registration will be depending on the value of the house or property. It also varies based on the locality that where the property is located. Despite all this, stamp duty is one of the biggest contributors to revenue for the government.
As per the sources to boost the real estate market, the state government had slashed stamp duty charges to two percent between August and December in 2020. This fall in the duty charges betided as the real estate was facing a slowdown due to Covid-19 and the nationwide lockdown imposed. Later, it was made to three percent in March 2021.
There is also one percent relaxation in stamp duty to the property purchased in the name of women offered by Chief Minister Ajit Pawar. Meanwhile, the finance department also prompted that once the property is purchased in the woman’s name, she will not be able to sell it for the next 15 years. If somehow, she sells it, then along with the heavy fine, one percent of the waived amount will be collected from her.
So, it connotes that if women buy an immovable property, then they will need to pay four percent stamp duty. But in addition to that, if the purchase of the same kind of property is made by men, then he will need to pay five percent stamp duty from April 1 onwards.
Stand of real estate industries on this decision
Ashok maharani, the President of NAREDCO Maharashtra, said, “Close to 18,000 housing units registered in this month indicates that consumers have grabbed the golden opportunity to purchase properties in the last few days as the bank loan interest rates were at an all-time low coupled with attractive property prices and reduced stamp duty benefits. It would have been a great move if the government had extended the stamp duty benefit for a couple of quarters more to keep the sales momentum going forward. On behalf of NAREDCO and the real estate fraternity, we would sincerely urge the government to reconsider their decision in favor of the real estate sector”.
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