To boost the stagnant real estate market hit by COVID-19, the Maharashtra Government has decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31. The decision was taken at a meeting of the state Cabinet on August 26.
The duty from January 1, 2021, until March 31, 2021, will be 3 percent.
Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to purchase properties during the pandemic.
On August 15, state Revenue Minister Balasaheb Thorat had hinted that a 2 to 3 percent reduction in stamp duty on property registrations was in the anvil.
Stamp duty rates in other major states largely hover anywhere between 5 to 8 percent, but they are lower in some states if property registration is executed in the name of a woman.
Delhi, Uttar Pradesh, Rajasthan, Punjab, and Haryana offer relaxation in stamp duty for women buyers. The exemption on stamp duty ranges from 1-2 percent in different states.