Maharashtra Government reduces Stamp Duty to 2% :-
Every person dreams of having their own house, but it is not always hunky dory when it comes to buying your own property specially in a Metropolitan City like Mumbai. But as Covid-19 has hit everyone hard, the condition of real estate has worsened and so keeping that in mind, State Government of Maharashtra have decided that they will reduce stamp duty levied on sales of apartments to 2% from September 1 to December 31 and then hike it slightly to 3% from January 1 to March 31, 2021, among relief measures for various sectors such as real estate, commercial transport and agriculture, fisheries sector, which were hit by the Covid-19 lockdown over the past five months.
Stamp duty is the transactional tax, which is collected by the government on property purchases.
Stamp duty collection is one of the largest contributors to state's revenues.
Currently, stamp duty in the state is 5% in the urban areas and 4% in the rural areas. This is apart from 1% surcharge in urban areas and 1% Zilla Parishad tax in rural areas. The state government levies stamp duty on sale of gifts and on mortgaged properties.
But the question is will this slash in stamp duty really help in sales during this pandemic? Everything comes with it’s pros and cons, this comes with it’s own too.
Maharashtra Government’s decision to reduce the stamp duty from 5% to 2% till December 31 augurs well for the
revival of MMR(Mumbai Metropolitan region) realty and is a much-needed boost to the ailing sector amid the pandemic. The reduced cost of the stamp duty is bound to encourage first-time homebuyers as well as resale flat buyers to invest in real estate
Coupled with the festive season, demand to pick up significantly will provide a huge rise in sales 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. This is going to put a positive light on real estate market.
When it comes to setbacks, this move may not be enough for an under construction property as GST is applicable. Another drawback of this movement is that it is temporary and short term and not every person would find it feasible.
But out and about, this decision seems to be really fruitful for those planning to invest in a property since long and can get some relief and can choose one of the best such as Rizvi Cedar or Rizvi Utopia at a great Price!!