To promote affordable housing, the Maharashtra government on Wednesday decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31, 2020, sources said.
The stamp duty from Jan 1, 2021, until March 31, 2021, will be 3 percent, they said. The decision was taken at the state cabinet meeting on August 26.
Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to purchase properties during the pandemic.The real estate sector has been severely affected due to the coronavirus pandemic. The reduced stamp duty will encourage first-time homebuyers and resale flat buyers to invest in real estate.
In Maharashtra, stamp duty charges are 5 percent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 percent in others. A 2-3 percent reduction in rates will result in significant savings for home buyers.