5% Stamp Duty on Real Estate Registrations to Be Reinstated by Maharashtra Government in FY 2021
The coalition-led state government of Maharastra has reportedly decided to reinstate a 5% stamp duty on real estate registrations from this year in a move to nullify the slashed rates with duty charges of 2% as exercised in Q4 yesteryear which in fact was imposed to boost the realty market as it was down due to covid pandemic and stringent nation-wide lockdowns.
On Wednesday this week, Udhav Thackrey led Maharashtra government decided not to carry on with the grant of a 2% stamp duty relaxation on real estate registrations any further now effective from April this year 2021. As per the sources, it is reportedly said that the Thackeray government committed to restore its previous stamp duty charges configured on property registrations from Thursday.
As Stamp duty charges collection accounts for one of the three biggest revenue sources and thus, a major source of income for the state government.
Dy Cm Maharashtra, Sh Ajit Pawar said to have offered a relaxation of a further 1% cut in stamp duty rates but only applicable in cases if the property is registered in the name of a woman home buyer.
Additionally, while issuing the order, state finance department had stated clearly that the applicant woman i.e; in the name of whom the property had been registered will not be allowed to resell it for a time period of the next 15 years. However, in case she enters into a deal to resell it, then she will be imposed with 1% of the waived amount along with a fine.
To conclude, the current changes allows a woman homebuyer to enjoy 4% of stamp duty and she only has to pay 1% stamp charges while a man investing in realty will have no relaxations and have to pay complete stamp duty charges of 5% duly effective from April 1 onwards.
