The Maharashtra Stamp Duty Act states that stamp duty is the levy of the State of Maharashtra that is paid to the registrar. This is fixed at a particular percentage and is applicable on the circle rate or the minimum price for any property or the transaction value (whichever is higher). The current rates stand at 5%.
Maharashtra Stamp Duty Rates 2020- Some aspects worth noting
The stamp duty and registration charges in Maharashtra 2020 are now cheaper by 3% between the 1st of September and 31st of December this year while they will be cheaper by 2% between January and March next year. This means that savings could touch Rs. 1.5 lakh and Rs. 3 lakh for those buying homes priced at Rs. 50 lakh and Rs. 1 crore respectively.
Department of Registration and Stamps Maharashtra takes game-changing decision
Simply using a stamp duty calculator Maharashtra 2020 will help you work out how much you potentially stand to save in this respect. The official stamp duty in Maharashtra 2020 notification has certainly spurred a higher number of enquiries from buyers in the State as per reports. Charges were previously at 5% in key cities like Mumbai, Pune, Nagpur and Nashik while they stood at even 6% in other cities across the State.
Property Registration Mumbai and Pune should increase substantially in the near future
Festive discounts and incentives from real estate developers coupled with zero GST on ready to move units and the stamp duty cut may encourage fence-sitters to take the plunge at the current time. The lower stamp duty works like a flat discount on the home price which is considerable in costly cities like Mumbai and Pune where circle rates are on the higher side. Homebuyers will be attracted to the low interest rates on home loans at present which are hovering at their two-decade low and this move should be a major boost for the housing sector in Maharashtra in the aftermath of the COVID-19 pandemic. Several Governments are coming out with innovative measures for resurrecting demand in the battered real estate sector including Australia where buyers can avail a house subsidy of nearly $25,000 and the UK where stamp duty has been waived for a period of 8 months. Tanuj Shori, founder at Square Yards, has opined that the decision is a hugely positive one by the Maharashtra Government and is hugely needed in the present scenario.
The Mumbai Metropolitan Region (MMR) and Pune are two of the country’s largest and most important housing markets and they have witnessed property registration volumes tank to almost 30% of pre-COVID volumes in recent times. The cut in stamp duty rates should balance out this lean phase and usher in major relief for home buyers and developers alike during the festive season. Some experts have also opined that the Government should do more for reviving real estate demand including giving more exemptions on payment of home loan interest in the future.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.