By Aditya Raghunath
Investing.com — In a move that caused major disappointment to real estate companies and prospective homeowners, the Maharashtra government decided not to extend the date for stamp duty waiver for property registrations.
On August 26, the state government reduced the stamp duty from 5% to 2% until December 31, 2020. From January 1, 2021, to March 31, 2021, it was 3%. However, from April 1, the rates will be back to 5%.
The Maharashtra government has reduced the stamp duty from 5% to 4% if the property is registered in the name of a woman. This rule comes into effect from April 1.
Realty experts said that an extension would have continued to support the home buying sentiment in the state. According to data from Maharashtra Govt- Dept. of Registrations and Stamps (IGR) plus Knight Frank India Research, Mumbai recorded registrations of 75,688 units from September 2020-March 24, 2021.
Data from Knight Frank India said that from September 1, 2020, till March 30, total revenue on apartment sales to the exchequer was over Rs 2,578 crores. The same number from January-August 2020 – before the stamp duty cut — was only Rs 1,756 crore. It is pretty clear that the stamp duty cut has encouraged a lot of people to buy homes.