5% Stamp duty on property registrations resumed from 1 April

Stamp Duty Reverts to 5% in Maharashtra from April 1

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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.

Comparative Stamp Duty Rates

Property Buyer Stamp Duty Rate from April 1, 2021
General 5%
Woman (with 15-year lock-in) 4%