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Property registrations, stamp duty restored in Mumbai

by Web Desk | Published: 01-04-2021

Mumbai Municipal Elections

Mumbai: In a setback for the real estate industry and flat buyers, the state government on Wednesday decided not to cut stamp duty on property registration.  Ready Calculation (RR) rates remain unchanged for the 2021-22 financial years.  The reduction in stamp duty in Mumbai from 5 per cent to 2 per cent from September to December 2020 and to 3 per cent till March 31, 2021 has boosted residential realty sales.

 

As announced in the state budget on March 8, the 1% stamp duty exemption for women home buyers will take effect from Thursday.  The exemption is for residential units only, not land.  In addition, the exemption does not apply if the unit has a male co-owner.  The state circular issued on Wednesday evening said the RR rates, which were revised six months ago, will continue for this financial year. 

 

State Revenue Minister Balasaheb Torath tweeted that the regular rates would be applicable from April 1.  Satish Magar, National Chairman, Confederation of Real Estate Developers Association of India (CREDAI) said closure.  We had again approached the government to extend the exemption for three months.  The government was compelled and did not agree to the expansion,”he said. 

 

State Inspector General of Registration and Stamps Shravan Hardikar said the annual statement rate for 2021-2022 will be the same as in 2020-21 as per the government directive.  RR rates for residential and commercial properties are normally announced on April 1 each year.  Revised rates for 2020 due to the Covid-19 pandemic were announced in September.  On average, RR rates increased by 1.74% last year.  The highest average growth (3.91%) was in Pune district.  In Mumbai, the average upward review was 0.6%. 

 

Shantilal Kataria, National Vice President, CREDAI, said that they have demanded that the RR rate be reduced as per the Maharashtra Stamp (Determining the Real Market Value of Assets) Rules 1995.  "However, we are glad the government did not touch it.  The last five to six months have seen a certain amount of brilliance,”he said. 

 

 

Suhas Merchant, National Chairman of the Standards Committee, said:  Hiranandani Group Managing Director and Naredco National President Niranjan Hiranandani said that Maharashtra had a "stellar role" by announcing the write-off of stamp duty last year.  "We urge the state to reconsider its decision," he said.