In order to fund infrastructure projects in the city, soon Mumbaikars have to pay an additional 1% stamp duty on the property. This extra money will be used to fund projects like metro and monorail, bus rapid transport system (BRTS), freeways and sea links.
The state Govt named it as a surcharge that is a percentage of the land/property value. So from now onwards, residents in Mumbai have to pay 6% stamp duties instead of 5%, making buying flats costlier in the city. The govt has passed this provision on November 27 without discussion.
According to a statement released by the Govt officials, “It is considered expedient to levy a surcharge by way of the stamp duty leviable on the instruments of sale, gift and usufructuary mortgage of immovable property within BMC to ensure the corporation or agency undertaking notified Vital Important Urban Infrastructure Projects has sufficient funds.”
The statement also said that this money will be used for different infrastructure project in a specified manner specified by the government.
A stamp Duty is paid while purchasing a house, renting a property, contract, mortgage documents. So with this increase now buying a house in Mumbai will cost more to home buyers.
On the other hand, in order to reduce traffic woes of Mumbai, the state govt has come with various transportation projects like Metro, Monorail, Eastern Freeway, Bandra-Worli Sealink. The additional stamp duty collected will be spent on the development of these projects.
Few days back, Mumbai Metropolitan Region Development Authority (MMRDA), had asked the government to provide funds by levying surcharge on stamp duty or increasing the premium on floor space index (FSI) for funding the transport projects.