On Wednesday, August 26, 2020, State government of Maharashtra announced the decision to reduce the reduce stamp duty to 2 per cent on home and land sale. This new decision will be applicable on registrations conducted between September 1 and December 31, 2020, and the reduction on stamp duty will be in effect from January 1, 2021.
The decision was taken by a government-appointed committee and the move is expected to help the economy based on the concession offered on the first sale. Further, it will be a boost to the real estate industry.
Officials took a decision also based on a study related to the impact of the lockdown in the industry. This was led by HDFC Chairman Deepak Parekh, who also sought a cut-down in the stamp duty and related decisions for the sector.
Earlier, one was expected to pay a 5 per cent stamp duty while purchasing a property, however, the same was dropped by 3 per cent. A large sum of income for the state of Maharashtra is received from the property sale, and it is expected that people will focus on buying home or property in the state after the daily lives resume from the coronavirus lockdown.
While the industry experts appreciate this move, they have also stated that the government should focus on reducing GST as well, as it would help the sector further.
Besides this plan, the government has also given a nod for the Slum Redevelopment Authority (SRA) plans to extend outside the Mumbai Metropolitan Region (MMR), amidst the limits of the local body. SRA projects, however, will include a different process for these projects, and a team will be set up to understand the needs of the same.
Share
Tweet
