In the latest news on stamp duty in Maharashtra 2020, the State Government has opted for a pro-active reduction in stamp duty for boosting the flagging real estate sector considerably.
Maharashtra Stamp Duty Act and what it entails currently
As per the Act, the Government earns revenue from stamp duty and registration of property across the State with Mumbai and Pune being its major sources of revenue since they are two key Indian housing markets as well. The current rates stand at 5% although they will go down considerably post the reduction. Stamp duty is the levy of the State which is paid to the registrar. This is a fixed percentage charge and applies on the circle rate (minimum price of any property as per the Government) or the transaction value (whichever is more).
Maharashtra Stamp Duty Rates 2020- What you should know
The stamp duty and registration charges in Maharashtra 2020 have been slashed by 3% which means that for someone buying a property priced at Rs. 50 lakh, the overall savings will be a whopping Rs. 1.5 lakh. This will translate into savings of Rs. 3 lakh for properties priced at Rs. 1 crore as per reports. The Maharashtra Government has taken this pioneering decision to lower stamp duty by 3% on property registration for 1st September to 31st December, 2020 and by 2% from January, 2021 till March, 2021.
Department of Registration and Stamps Maharashtra makes pioneering decision
If you are using a stamp duty calculator Maharashtra 2020 then you will know that the charges have come down considerably after the stamp duty in Maharashtra 2020 notification. Stamp duty charges were earlier 5% in cities like Pune, Mumbai, Nashik and Nagpur while they were 6% in other cities as well.
Property Registration Mumbai and Pune to go up considerably
Experts feel that this is a highly positive move given that real estate developers are steadily coming out with various festive incentives and discounts, thereby incentivizing several fence-sitters to finally purchase their homes. The lower stamp duty is akin to a flat discount instantly available on the property as per experts and this is considerable, taking into account high prices of properties in cities like Pune and Mumbai. Taking into account exemption from GST which is a key benefit of ready to move homes and the stable circle rates and property prices, this could be a landmark decision.
Homebuyers will definitely be enthused by the two-decade low interest rates on home loans as well. Globally amidst the COVID-19 pandemic which has bruised the housing sector, Governments are already rolling out measures for reviving demand. In Australia for instance, the Government has unveiled its house subsidy of approximately $25,000 for buyers, similar to the 8-month stamp duty waiver announced in the UK (United Kingdom). As a result, the pioneering move to lower stamp duty is a step in the right direction by the Maharashtra Government according to the founder at Square Yards, Tanuj Shori. This is needed at a time when property registration has come down to approximately 30% of pre-COVID levels in the Mumbai Metropolitan Region (MMR) and Pune. Experts feel that the Government could consider higher exemptions on taxes against interest repayments on home loans for further spurring demand.
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Published Date: 27 August 2020