Stamp duty on registration of properties has been reduced by 1 per cent by the state government in areas like Mumbai, MMR, Pimpri-Chinchwad and Pune Municipal corporation limits and Nagpur.
By Varun Singh
Stamp duty has been reduced and the announcement was made in the budget presented on Friday by Deputy Chief Minister Ajit Pawar. This is a sign that the developer lobby has finally managed to convince the government.
The budget stated, “One per cent concession, for the next two years, in the Stamp Duty and other related changes applicable on registration of documents in the area of Mumbai Metropolitan Region Development Authority and in the areas of Municipal Corporations of Pune, Pimpri- Chinchwad and Nagpur.”
This effectively will result in 4 per cent Stamp Duty and 1 per cent Metro cess. That means when a home buyer goes for registration of the flats he will be paying a total of 5 per cent instead of the existing 6 per cent stamp duty on his purchase.
This also means that the burden on a home buyer will reduce as he will pay 1% less as stamp duty when he or she buys a flat and registers it with the government.
Dr. Niranjan Hiranandani is President (National) NAREDCO as also President, ASSOCHAM, says, “Any cost reduction is welcome, and this move will positively impact home buyer sentiment. I appreciate the concern shown by the state government to help the home buyer as also real estate Industry.”
The developers body had met the chief minister recently and had asked him for several concessions.
The suggestion put forward by industry bodies was for a 50 per cent reduction in stamp duty. Hiranandani said, “We view this move as a beginning. Now that the state government has identified Industry problems, they will be sympathetic and are expected to take measures to improve the situation. These moves should result in a push to sales, with an increase in numbers.”
While this move will impact collections, which might go down by an estimated Rs 1,800 crore, developers claim that this will boost sales and thus the loss can be covered.