Government reduces stamp duty charges from 5% to 2% in Maharashtra.

The Maharashtra government agreed to temporarily cut the stamp duties on houses from 5% to 2% until December 31 in an effort to improve the declining real estate sector due to the coronavirus outbreak.

The government said in a statement that the stamp duty on homes would be 3% from 1 January until 31 March. The Cabinet Meeting today took the decision. The government said that the stamp duty cut would promote property sales.

At present, in cities such as Mumbai, Pune, Nagpur and Nashik, Maharashtra charges 5 percent stamp duties. The average is 6 percent in other cities.

Ramesh Nair, Chief Executive Officer, JLL, said almost 50% reduction in stamp duty is a positive action.

“A gradual reduction in the stamp duties from existing 5% in Mumbai and Pune to 2% (until December 2020) and 3% (January-March 2021) is an awaited step from the Government of Maharashtra because the residential property markets are being held back by these top two cities.”

Of course, rest other part of Maharashtra will also be benefited from this reduction move. It would certainly forecast well for prospective buyers, because they are supposed to save directly. This will serve as an effective stimulus to address the time required to close many deals in the current business environment.    

Though this is temporary, a powerful impact on the faded environment of the market would help restore sales, added Nair.