Stamp duty slashed by Maharashtra government by 3 percent until Dec 31 Latest News

The Maharashtra government on Wednesday has decided to slash the stamp to boost ailing real estate sector hit by coronavirus pandemic. The reduction will be in two slabs. From September 1, the stamp duty will be slashed on housing units from 5% to 2%. The rate will be effective until December 31, 2020. The stamp duty from January 1, 2021, until March 31, 2021, will be 3%.

The decision was taken at the state cabinet meeting today. The latest reduction is over and above 1% cut in stamp duty that the Maharashtra government announced in March. In its maiden budget, the Thackeray government reduced 1% stamp duty for the next two years in the areas falling under the Mumbai Metropolitan Region Development Authority (MMRDA) and municipal corporations of Pune, Pimpri-Chinchwad and Nagpur.

A stamp duty rate cut could boost sales during the festive season, believe experts. Usually payable on the sale agreement, the stamp duty rate is fixed by the state governments. In Maharashtra, existing stamp duty charges are 5% in major cities like Mumbai, Pune, Nagpur and Nashik, and 6% in others.

The move comes after several real estate bodies had sought the reduction to push property sales. Real estate sector in India has been severely hit by coronavirus pandemic.