5% Stamp duty on property registrations resumed from 1 April
Stamp Duty Reverts to 5% in Maharashtra from April 1
Decision Details
The Maharashtra government has decided not to extend the 2% reduced stamp duty on property registrations beyond March 2021.
From April 1, the state will revert to its earlier 5% stamp duty rate for real estate registrations.
Background on the Reduction
COVID-19 Relief Measure: The initial reduction to 2% (from August to December 2020) and subsequent 3% reduction (from January 1 to March 31, 2021) were aimed at stimulating the real estate market, severely impacted by the pandemic and lockdown.
Revenue Implications: Stamp duty is one of the top three revenue sources for the Maharashtra government.
Special Provision for Women Property Buyers
Proposal by Deputy Chief Minister Ajit Pawar: A 1% additional reduction in stamp duty if the property is purchased in a woman's name.
Condition: The property cannot be sold for 15 years from the date of purchase. Selling the property within this period will attract a fine and require payment of the waived 1% stamp duty.
