State reduces stamp duty to 2% from Sept 1 to Dec 31

MUMBAI: The state government on Wednesday said it will reduce stamp duties levied on sales of apartments to 2% from September 1 to December 31 and then hike it slightly to 3% from January 1 to March 31, 2021, among relief measures for various sectors such as real estate, commercial transport and agriculture, fisheries sector, which were hit by the Covid-19 lockdown over the past five months.

Currently, stamp duty in the state is 5% and 4% in urban and rural areas respectively. This is apart from 1% surcharge in urban areas and 1% zilla parishad cess in rural areas. The state government levies stamp duty on sale, gift and usufructuary — refers to temporary right to derive income from someone else’s property — mortgage of immovable properties.

“We have decided to reduce stamp duty from September 1. It will be applicable till December 31. In this period, people will be charged 2% stamp duty on property transactions. But from January 1, stamp duty will be 3% on all property transactions till Marchend 2021,” said a senior official from the state revenue department.

“The move is to boost the real estate sector, considering the ongoing slump following the lockdown imposed to contain Covid-19 spread. It will also bring relief to the common people who wanted to buy their own house,” he added.

CREDAI-MCHI (Maharashtra Chamber of Housing Industry), a leading builders association, said the decision will offer respite to the real estate sector, which is going through a rough phase.

CURRENTLY, STAMP

DUTY IN THE STATE IS 5% AND 4% IN URBAN

AND RURAL AREAS RESPECTIVELY