Maharashtra refuses to extend stamp duty rebate

The state has, however, maintained status quo on the ready reckoner rates, saying it will be same as last year. Stamp duty will now be charged at 5% from the current 3%.

The Maharashtra government has refused to extend relaxation of stamp duty for real estate sector which had considerably boosted sales of houses across the state from September last year onwards. However, the state has maintained status quo on the ready reckoner (RR) rates, saying it will be same as last year.

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Stamp duty will now be charged at 5% from the current 3%.

“The rebate given in stamp duty to give boost to the realty sector which ends on March 31 will not be extended. The regular stamp duty rates will be applied,” tweeted revenue minister Balasaheb Thorat.

Builders had hoped that the state will extend the rebate further, especially in view of the second wave of Covid-19. “We are disappointed with the move to not extend the stamp duty rebate beyond March 31. It will impact sales momentum,” said Deepak Garodia, president of Maharashtra Chambers of Housing Industry (MCHI-CREDAI), an association of builders across the state. “However, we will continue with our efforts to pursue the government that waiver is necessary as it will boost the money being paid to the state exchequer,” he added.

The government in August last year announced its decision to reduce stamp duty levied on sales of apartments to 2% from September 1 till December 31, 2020,and then hike it to 3% from January 1 till March 31, 2021. The move had played a huge role in boosting sales of both primary and secondary market.

Niranjan Hiranandani, president of National Real Estate Development Council (NAREDCO), urged the government to reconsider reducing both stamp duty and RR rates, saying they were imperative in the post-Covid era to speed up sales and to ensure economic revival.

RR rate is a guide published annually by the state government, which determines the rate of properties in a particular area, on which stamp duty and registration charges are levied. In addition, all calculations related to real estate are based on RR, whether it is premium, tax collection or even income tax matters related to the construction sector.

“Bringing down the RR rate at this juncture would have definitely aided the real estate market as it was something that all stakeholders were looking forward to. A cut in RR rates would have given more room to developers to bring down the prices,” said Anuj Puri, chairman of ANAROCK Property Consultants.

The government however will provide a 1% rebate to any woman registering a property in her name solo or with another female member.