The Maharashtra government on Wednesday decided to temporarily reduce stamp duty on housing units by 3 percent until 31 December 2020, to push sales in the real estate sector that has been affected due to COVID-19.
"It was decided to reduce the prevailing stamp duty on the deed of transfer by 3% for the period from 1st September, 2020 to 31st December, 2020 and by 2% for the period from 1st January, 2021 to 31st March, 2021," the state government said in a statement.
In Maharashtra, stamp duty charges are 5 percent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 percent in others. The 2-3 percent reduction in rates will help make significant savings for homebuyers in the country. Mumbai and Pune markets are expected to benefit the most as the move, though temporary, will boost real estate demand in the festive season.
Bleak economic environment and muted consumer sentiment have stalled sales of residential as well as commercial properties. The reduction in stamp duty is a welcome move in such circumstances. Increased registrations are also hoped to generate revenue for the state government.