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PUNE, MAHARASHTRA: State may reduce stamp duty by 2-3%, says revenue min

A 2 to 3% cut in stamp duty on property registrations in the state is likely to boost transactions, according to state revenue minister Balasaheb Thorat.

Though it may influence the state exchequer, the minister told TOI that the scheme is being discussed by the government.

“Builders want reduced stamp duty rates. As of now, it is 5% across the state, and we are considering reducing it by 2 to 3%. A last decision will be taken at the end of this month,” he told TOI on Friday.

He added that after a realistic examination, ready reckoner rates will be reduced by August end. 

CREDAI, the developer’s association, had requested a cut in stamp duty to boost property transactions that have fallen by nearly 70 to 80% from last year. 

Vice president of CREDAI Shantilal Kataria said stamp duty must be reduced to 1% for at least six months and the same ready reckoner rates as last year. 

 “If the stamp duty is reduced, people can decide on the property quickly as the upfront cash needed for such a payment will be reduced,”he told TOI.

Construction has been influenced due to lack of workers as most have yet to return even after the state government’s unlock measures, they said.

Buyers are very careful. “My salary has been halved. I won’t get a substantial loan unless the property prices settle down as only 70 to 85% loan is paid out according to the eligibility,” a buyer said.

MAHARERA CLARIFICATION:

> Maharashtra Real Estate Regulatory Authority has illuminated that if the property has a residency certificate before registration they need not register with MahaRERA.

> Earlier, all properties registered were supposed to obey MahaRERA registrations.

> If any firm has purchased land or built up property by paying full stamp duty on sale deed, and upon dissolution, if one of the partners is retaining it, and the other partner is getting his contribution back, then no stamp duty should be payable.

> Inspectorate General of Registration and stamps Omprakash Deshmukh said the state government has issued directions after receiving clarifications.

>Such properties should be allowed to be registered with the registration department.

> Stamp duty to be reduced to 1% for real estate transactions for next six months.

> Stamp duty at Rs. 1,000 for residential units with carpet area up to 60 sqm as under PMAY scheme.

> If a place is purchased in the name of women, concessions in the stamp duty may be given up to March 2021.

> Removal of local body cess of 1% since GST is in force since 2017.

Annual Statement/ Schedule of Rates

> ASR revision once every three years instead of every year

> Reduce ASR rates for 2020-21 diversely.

> Footnotes in RR must be extra practical

Stamp duty reduction could boost outlays in property but people who have recently taken salary cuts may find it difficult to endure their repayment of home loans. It also remains to be seen for how long the government maintains the reduced rate as it will influence the exchequer.