Stamp duty extension announced by the Maharashtra government in the assembly will benefit the real estate sector especially the investors.
By Varun Singh
On Wednesday the legislative assembly passed a bill that will benefit the investors in the real estate industry.
Investors form a major part of the real estate sector, who buy a property, and hold on it for a certain period and then sell so that they can make profits.
So as to boost the real estate sector and to let investors get a relief too, the legislative assembly passed a bill that will extend the duration to avail the stamp duty benefits from one year to three years.
Currently, if an investor or a homebuyer sellers the flat within a year, of registering the sale, then during the fresh registration the stamp duty charged is only on the difference of the amount between the two consideration.
For example, if one has bought an apartment for Rs 1 crore and paid a stamp duty of Rs 5 lakh at 5% on it during registration and then the same investor decides to sells the flat within a year for Rs 1.5 crore. Now, as the deal is being carried out within a year of payment of stamp duty and registration, the new buyer now instead of paying the entire stamp duty, will only pay the stamp duty on the difference.
The period of one year now has been extended to a period of three years by the legislative assembly.
According to a report as per existing norms, if an investor buys and sells the flat within a year, the investor gets concession in stamp duty. However, most real estate projects are getting completed in three years and the number of investors availing the benefits is very minimal.
“In the wake of the pandemic, the investors need to be given some relief. If the current one-year duration is extended to three years, then not just the real estate sector will get a boost but there will also be a rise in the sale of the houses which will lead to increasing the government’s revenue,” said Revenue Minister Balasaheb Thorat was quoted by Indian Express.
Dinesh Doshi, Managing Director, Tulsi Realty, said, “This is a positive step for the real estate sector as well as for the end user home buyer or investor , it is win win situation for buyer who wants to retain or trade as a tangible investment, I personally appreciate the step taken by Maharashtra govt.”
Also Read: 9672 home sales in December generated stamp duty revenue of Rs 758 crore
