City builders still ambiguous on stamp duty rebate

Lokmat News Network

Nagpur, Dec 23

The construction industry, which is one of the major contributors to the GDP and second largest employer after agriculture in India had suffered very badly during the last couple of years due to various reasons. The Covid pandemic which wreaked havoc since March, brought the industry to a complete standstill.

Thanks to the government initiatives, which came to the rescue of the real estate sector, it (industry) saw improved sales after the announcement of stamp duty reduction from six per cent to three per cent from September up to December 31, 2020. From January 1, 2021 upto March 31, 2021 the stamp duty would be four per cent as per the government notification, which came into effect from September 2020.

Talking to Lokmat Times Credai Nagpur Metro president Mahesh Sadhwani said, “There is no concrete information or notification which we have received. The rebate had boosted the housing sales in the city and we would be urging the State government to keep the stamp duty rebate as per the earlier notification till March 31, 2021. We have already submitted a memorandum in this regard.”

Anil Nair from Pioneer Construction Company told Lokmat Times, “There is still not a notification about amends in the stamp duty rate from the competent authority. There has been a major fillip to the business due to the stamp duty rebate announced in September 2020. Housing registrations and sales had increased. The ticket size was also good and ranged between `30-`90 lakhs,” he added.

City developer Abhay Joshi of Laxmi Keshav Constructions Pvt Ltd said, “The government had helped the real estate industry very timely and rescued it. The stamp duty reduction has helped the end users as well as the real estate developers. Also favourable interest rates by banks and housing finance institutions have boosted real estate sales in the city. Though apartments in the affordable segment moved fast, yet inventory in the luxury category (one crore and above) is yet to pick up.”

Box

‘People can avail benefit of

lower stamp duty till March 31’

According to a notification issued by the joint district registrar, Ashok Ugade the government has given 1.5 per cent rebate on the registration charges from January 1, 2021 till March 31, 2021. ‘Home buyers can also pay the stamp duty by December 31, 2020 on the property and get it registered in the next four months to avail of the benefit of lower stamp duty,’ he added.`