Stamp duty cut to boost realty

In order to boost real estate transactions during the festive season, some of the states are planning to cut stamp duty rates and egistration charges.

Maharashtra and Karnataka are mulling a reduction in stamp duty and registration charges this festive season beginning with Ganesh Chaturthi, according to Anarock Property Consultants.

Stamp duty charges in Karnataka are five per cent for properties costing more than `35 lakh, 3 per cent for properties priced between `21 lakh to `35 lakh and two per cent for properties up to `20 lakh. A lower stamp duty for affordable properties was announced in the last state budget and it might be extended to properties above `35 lakh as well.

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

Stamp duty rates in other major states largely hover anywhere between 5-8 per cent, but states like Delhi, UP, Rajasthan, Punjab and Haryana offer relaxation of 1 -2 per cent in stamp duty for women buyers.

“To ease inventory pileup and cost overruns, many players have already topped off discounts with added incentives such as booking amount refunds, statutory fees waivers, cash-back schemes, easy payment structuring and assorted freebies. A stamp duty rate cut could push sales into the green during the festive season,” said Anuj Puri, chairman, Anarock Property Consultants.

In previous unprecedented times of extreme market stress – such as post structural reforms like demonetisation and Real Estate Regulatory Authority — some state governments had given concessions to boost their sluggish real estate markets.