Stamp duty has been reduced in the state by the government, the two slabs include reduction by 3% between Sep 1-Dec 31 (2020) and 2% between Jan 1-Mar 31, 2021.
By Varun Singh
For Chembur resident, Deepali Gupta Rathod Diwali has arrived a bit early this time. Deepali has saved Rs 4.80 lakh from the government’s move of reducing stamp duty.
On Wednesday the state government announced that for the period between September 1, to December 31, the stamp duty shall be reduced by 3%. The same will be reduced by 2% between January 1, 2021 to March 31, 2021.
Rathod recently bought an apartment in Ghatkopar and was to go ahead with the registration on Thursday. She had even begun the process, and was to pay close to Rs 8 lakh as stamp duty for her purchase.
Now she has delayed the process by a week and will be saving close to Rs 4.80 lakh, which for a homebuyer is a huge amount.
Currently in the city of Mumbai, one has to pay a stamp duty of 5% during registration of their apartment.
If one has to explain, how this will impact the pockets of a home buyer in Mumbai then here’s an example. If one buys a flat worth Rs 1 crore, he or she would pay stamp duty at 5% which would be Rs 5 lakh, now till December 31 from September 1, the stamp duty will be Rs 2 lakh and the same would be Rs 3 lakh between January 1, 2021 to March 31, 2021.
While Deepali is a happy right now, the developer community also is unable to restrain themselves from celebrating.
The developer community claims it as a victory for themselves, as they have managed to convince the government to reduce the stamp duty.
Nayan Shah, President, CREDAI MCHI, says, “Maharashtra Government’s decision to reduce the stamp duty from 5% to 2% till December 31 augurs well for the revival of MMR realty and is a much-needed boost to the ailing sector amid the pandemic.”
Shah says that, the reduction is bound to encourage first time homebuyers, fence sitters as well as resale flat buyers to invest in real estate.
The real estate industry has been suffering from a major slowdown, and this move by government will benefit the sector expect developers.
“We thank the Government for acknowledging the slowdown in the overall economy and reducing the stamp duty rates to stir up demand for homes. This will immensely benefit homebuyers as well as boost the real estate sector,” said Shailesh Puranik, Managing Director, Puranik Builders.
Developers expect that, coupled with the festive season, developers expect demand to pick up significantly which will provide a huge respite not only to home buyers but also to developers who have been suffering amid low demand and limited cash flow availability due to Covid – 19.