On the Day 1 of Stamp Duty rate cut being implemented, how much did the state earn? The Figure is good inspite of homebuyers paying less than earlier.
By Varun Singh
September 1, was the day when the state government implemented the Stamp Duty rate cut in the state.
On the first day, a total of 4,784 registrations took place with the registration offices across the state.
The total amount collected from these document registration was Rs 31.46 crore.
Of the 4,784 registrations carried out, 3,144 registrations in the entire state were that of sale and conveyance.
The majority portion of the stamp duty and registration fees collected in the state came from conveyance and sale registrations, which stood at Rs 28.51 crore.
The other aspects that contributed to the registration amount are leave and license, lease, etc.
Only in Mumbai, 83 documents of conveyance and sales were registered worth Rs 2.54 crore on Day 1.
The state government on August 26, announced a stamp duty rate cut in the entire state. From September 1 to December 31, the rates were slashed by 3%. The rates have been reduced by 2% between January 1 to March 31 (2021).
According to Adv Vinod Sampat, an expert on matters of Stamp Duty, the start is good. “Property Purchasers are happy. Stamp duty is a major source of revenue for the government. It is a win win situation for all,” said Sampat.
Meanwhile Mumbai city saw a collection of Rs 176 crore from registration of conveyance and sales in the month of August.
Mumbai’s revenue from registration saw a fall in August when compared to July. In August the revenue collected was Rs 211.76 crore, in July it stood at Rs 242 crore.
A total of 24,196 documents were registered with the registration office in Mumbai in August.
In July the total number of documents registered in Mumbai was less than August, it was 21,311.
In September, the revenue is expected to see a hike, as the belief in real estate industry is that with reduction in stamp duty prices, many would buy homes. These homes will be registered too and thus the figures are expected to go up.