Maharashtra Government announces stamp duty reduction for women Latest News

The government of Maharashtra, in the state's budget for 2021-22, has proposed to provide 1% concession over prevailing stamp duty for women homebuyers. The concession will be available exclusively to women buyers provided the transfer of house property or registration of sale deed is in the name of a woman.

The move is expected to prompt women and families to buy properties in her name prompting more homeownership among women, experts said.

"Next Gen Millennial women are steadily taking on a more dynamic role as homebuyers, in addition to their role as homemaker. The Maharashtra state budget's proposed 1% concession in stamp duty for women homebuyers will motivate more women to buy properties and invest in real estate," said Niranjan Hiranandani, National President, the National Real Estate Development Council (NAREDCO).

The state government is estimated to face revenue shortfall of around Rs 1,000 crore owing to this concession being provided to women homebuyers.

"This is a great initiative to encourage families to buy property in the name of women of the house and it will go a long way in securing her future and position in the household. This would empower women to lead one of the most important decisions for the family," said Parag Munot, MD, Kalpataru.

According to a survey conducted by Anarock Property Consultant, over 62% women favour real estate as the most preferred investment asset class, while 54% men chose it over the stock market, fixed deposits and gold. Around 82% surveyed women respondents plan to buy a home for their personal use, and 18% for investment. Among men respondents, the end-use to investment ratio was 68:32

With an objective of kick-starting the real estate sector and nearly 260 linked industries by encouraging housing sales, the state government had announced a reduction in stamp duty charges to 2% from 5% from September to December-end. Stamp duty is being charged at 3% of the agreement value from January to end-March.

The government has been promoting women homeownership across the country for the last couple of years through various policies. To avail homes under the government's flagship scheme Pradhan Mantri Awas Yojna (PMAY) introduced in 2015, properties need to be mandatorily registered either in a woman's name or with women as co-owners. This was aimed at empowering women in the lower-income segments.

Apart from these benefits, several banks also offer discounted home loan rates to women. While this varies across banks, the difference between rates for male and female borrowers can be as much as 25 basis points. The prevailing low property rates coupled with home loans rates at a 15-year low are certainly an advantage.

Women homebuyers already enjoy the benefit of lower stamp duty across various states, although these charges vary from state to state. The exemption for women varies between 1-2% across different states. In some cases, it might even vary within a particular state, based on the classification of regions as 'urban' and 'rural'.

SOURCE- THE ECONOMIC TIMES