Mumbai: On Wednesday, the Maharashtra government decided not to renew the 2% deduction for stamp duty on property registrations from the month of April. The government would restore it’s earlier five percent stamp duty system on real estate registrations from Thursday.
Reason for stamp duty reduction-
The state government cut stamp duties to two percent between August and December (2020), to stimulate the real estate market, which was down due to COVID-19 and lockdown. In the period from January 1 to March 31 (2021), it was cut by three percent. Stamp duty is one of the three largest sources of revenue for the state government.
Ajit Pawar, Deputy Chief Minister has proposed a 1% extra reduction of stamp duty if the property is acquired in the woman’s name.
At the time of issuing the order, the State Finance Department stated that if the property is acquired in a woman’s name, she cannot sell it for the next 15 years. If she sells it, then one percentage of the amount left will be charged with a huge fine. This means that if a woman buys a property, she must pay a stamp duty of four percent. To buy the same property, a man must pay a stamp duty of 5% from 1st April 2021 onwards.