Credai Pune asks members to bear 1% stamp duty on residential property sales till Mar 31

PUNE The managing committee of the Confederation of Real Estate Developers’ Association of India’s (CREDAI) Pune unit, has asked members to extend the benefit of reduction of stamp duty by 1% till March 31, 2021, with respect to the sale of residential property.

The government of Maharashtra on August 31, 2020, had reduced stamp duty from 5% to 2% from September 1, 2020, to December 31, 2020.

The reduction benefited home buyers and the number of transactions registered for property sales increased substantially.

For instance, the number of documents registered in September 2020 was 2.48 lakh, in October 2.74 lakh, November 2.75 lakh and in December 2020, it was the highest at 4.59 lakh.

Suhas Merchant, president, Credai Pune, said, “We approached the government of Maharashtra and requested them to continue the stamp duty concession up to June 2021 to boost the real estate sector, because more than 300 industries are dependent on this sector.”

“However, the state, so far, has not considered our request. Thus, the managing committee of Credai Pune has recommended that all its members extend the benefit and absorb the 1% stamp duty in the interest of home buyers,” Merchant said.

Current stamp duty on residential properties is 3% and the same shall be in effect till March 31, 2021.

Credai Pune has urged its members to bear the 1% stamp duty so that it comes to only 2% for the home buyer, till the end of March.