Good News: Maharashtra(India) stamp duty slashed in buying properties

In an attempt to boost real estate market, the Maharashtra government on Wednesday announced its decision to reduce stamp duty on flats from 5 percent to 2 percent till December 31 and to 3 percent between January 1 and March 31 

*Currently, Maharashtra charges stamp duty of 5 percent in cities like Mumbai, Pune, Nagpur and Nashik. In other cities, the rate is 6 percent.

so new stamp duty rates will be as follows:

3% of Property purchase value (1st September 2020 till 31st December, 2020)

4% of Property purchase value (1st January 2021 till 31st March 2021)

*LBT tax 1% or less as applicable.

What is Stamp Duty?

Stamp Duty are charges or government tax which to be paid at the time of buying or selling any property so as for example if property value is 1 Cr. Indian rupees (150000 US$) then stamp duty will be levied as per above percentage on the value and to be paid to state government in which the property is located, so this saving is lacs of rupees to the buyer which has been offered by the government.

The reduction in stamp duty is estimated to save a significant amount of money for home buyers as well as provide support to the demand in the sector. Along with this, the reduced borrowing cost, lower transaction cost, and developers offering lucrative prices create a great opportunity for serious consumers.

this is the best time for a buyer to purchase their dream home amid the prevailing situation, The reduced cost of the stamp duty is bound to encourage first time home buyers, fence sitters as well as resale flat buyers to invest in real estate.

Niranjan Hiranandani, National President,  Naredco said, "This will certainly stimulate the housing demand and help in converting inquiries into the sales closures. The fiscal advantage should nudge fence-sitters to convert into the actual home buyers with rippling effect on economic growth." adding that With many other favorable market conditions, this announcement shall rekindle ailing real-estate sector and see volumes in transactions. "If the central government can slash GST rates in an upcoming council meeting would act as a shot in the arm".

Information gathered: Online.