Maharashtra's department of stamp duty and registration has issued a circular granting occupants of redevelopment homes a stamp duty exemption on Permanent Alternate Housing (PAA) agreements.
According to the notification, individuals residing in redeveloped buildings with PAA agreements will no longer be subjected to stamp duty fees. This allows developers to undertake reconstruction projects with reduced project costs.
This decision comes after a ruling in March by the Bombay High Court (HC). The ruling clarified that PAA agreements signed by developers with specific members of housing societies or current residents of rebuilt homes are indeed exempt from stamp duty.
Moreover, the circular says that homebuyers in Mumbai looking to purchase new apartments will now only have to pay a stamp duty fee of INR 100. Stamp duty was previously a percentage of the entire agreement value, ranging from 5% to 7%.
The reduction in stamp duty will be particularly beneficial for those seeking housing options under the Pradhan Mantri Aawas Yojana. The stamp duty rate is now INR 1,000 for people buying apartments through the Pradhan Mantri Aawas Yojana.
The exemption does not apply to tenants for the entire transaction. Buyers who choose to purchase additional space from developers will still be required to pay the standard stamp duty fees on that specific transaction.
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