Maharashtra: Stamp Duty Concession for Women Home Buyers
Maharashtra News: The cost of owning your own house in any metropolitan city is nothing less than a dream; however, to make your dream come true Maharashtra government has brought in some good news. On the occasion of Women’s Day, the Maharashtra government presented its budget for 2021 – 22, where they offered a 1% concession on the prevailing stamp duty rate if the property is transferred in woman’s name, which means the women home buyers will now have to pay only 2% of the property value as the stamp duty.
Deputy Chief Minister and Finance Minister Ajit Pawar presented the Maharashtra budget on March 8, 2021. While presenting the same, he said, “On International Women’s Day, I propose concession in stamp duty of 1 percent over the prevailing rate exclusively to women home buyers, provided the transfer of house property or registration of sale deed is in the name of woman or women only. Due to this concession, he said there would be a revenue shortfall of around Rs. 1,000 crore.”
Mumbai, the city of dreams, where the property rates are always soaring high, saw a major spike in property registration in February; all the credit goes to the state government’s move of stamp duty cut, which resulted in over 10,000 housing units registered in Mumbai in February. In Feb, properties worth Rs 11,745 crore were sold in Mumbai, up by the 34 percent YoY, as per Propstack’s data.
Himanshu Jain, VP, Sales & Marketing, Satellite Developers, said, “in a step towards encouraging women to invest in properties, the Maharashtra government has announced a concession on stamp duty. To announce such news, there could not be a better day than Women’s Day.
In another move, to help the real estate sector to revive from the pandemic hit, the Maharashtra government in August announced to cut stamp duty on the property from 5 percent to 2 percent until December 2020. From January 1st – 31st March 2021, the stamp duty rates were reduced to 3 percent. Now, this was the second phase of reduction in stamp duty rates in Maharashtra in 2020. The step was taken, seeing the low property registrations, which resulted in causing damage to the state’s coffers. After the Maharashtra government further reduced the stamp duty on property transactions, many real estate developers were happy with the move. They thanked the government for acknowledging the downturn in the overall economy and reducing the stamp duty to encourage the women home buyers to invest.
What is Stamp Duty?
For those who aren’t familiar with the real estate jargon. It is applicable while registering a document with the state registrar while doing the transaction of a property. It is a legal cost of asset acquisition. In most cases, it is usually a fixed percentage of the agreed value as mentioned in the agreement, and the charges on registration of documents may vary from state to state.
Stamp Duty Reduction Announced By Maharashtra Government
Amid the COVID-19 pandemic and lockdown, the stamp duty witnessed a historic low. To further make it easier for the homebuyers, the Maharashtra government, on August 26, 2020, announced to reduce the stamp duty on property purchase temporarily.
Initially, from September 1, 2020 – December 31, 2020, the state government decided to charge 2 percent as stamp duty on property registration, and earlier, it was 5 percent. From January 1, 2021 – March 31, 2021, the government announced a reduction of 2%, functionally bring the stamp duty on property registrations to 3 percent for a 3-month period.
“The move is beneficial to the real estate sector because the number of women looking for property has been steadily growing. We are hopeful that other states will follow suit,” said Mani Rangarajan, Group COO, Housing.com, Makaan.com, and Proptiger.com.