The latest news on stamp duty in Maharashtra 2020 has galvanized the real estate sector in the State while boosting sentiments of affordable home buyers and homebuyers in the mid-range category as well. The stamp duty cut along with reasonable property taxes and lower rates of interest should spur demand considerably in the long run.
Stamp Duty and Registration Charges in Maharashtra 2020
The Government in Maharashtra has approved a 3% cut on property registration for stamp duty between 1st September and 31st December, 2020. The stamp duty in Maharashtra 2020 notification clearly states that the Maharashtra stamp duty rates will be cheaper by 2% between January 2021 and March 2021. The savings will be quite high since a person buying a home priced at Rs. 50 lakh in Mumbai will naturally save at least Rs. 1.5 lakh while this will shoot up to Rs. 3 lakh for a property priced at Rs. 1 crore.
Property Registration gets cheaper- Developers welcome move
The reduction of stamp duty on real estate sector will certainly boost growth in the property market throughout the State. Previously, stamp duty charges stood at 5% for major cities like Pune, Mumbai, Nashik and Nagpur while they hovered at 6% in other cities. Add to this the fact that real estate developers have unveiled multiple festive offers and discounts. This will incentivize several fence-sitters to finally purchase their homes. A reduction of 2-3% is considerable for buying property in a costly city like Mumbai or Pune. Rates of interest are also at their lowest levels in almost a decade now.
Stamp duty is the state levy that is paid to the registrar. This is a fixed percentage levy and is charged on the circle rate (minimum property price) or transaction value, whichever is more. Tanuj Shori, the founder at Square Yards, India’s foremost tech-driven real estate brokerage platform, stated that governments are releasing similar incentives worldwide for reviving overall demand. Australia, for instance, has declared its $25,000 house subsidy according to him while the UK has confirmed an 8-month waiver on stamp duty. Shori hailed the decision to cut stamp duty by the Maharashtra Government, calling it a move in the right direction.