An Overview Of Maharashtra’s Reduction In Women’s Stamp Duty

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An

Overview Of Maharashtra's Reduction In Women's Stamp Duty

TheMaharashtragovernmentdeclaredthatthestampdutyreductionforfemale homebuyerswouldbeextendedintheStateBudget2023.Withtheintentionof boostinghomesalesinMaharashtra,thedecisionhasbeenmadetoencourage womentopurchaseproperty.ReadontolearnaboutMaharashtra'sincreased stampdutyratesandhowtheycanaffecthomesalesifyouwanttopurchasereal estatein2023.

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TheMaharashtragovernmenthasmaintaineditspriordecisiontoprovideaone percentstampdutydiscountforfemalehomebuyersinthemostrecentStateBudget forthenextFinancialYear(FY)2023–24.TheStatehasmadeaconcertedeffortto supportwomenwhowanttoownproperty.DevelopersallthroughouttheState havepraisedthechoice.

TheStatehas,however,previouslyprovidedhomebuyerswithstampduty concessions.InAugust2020,Maharashtrainitiallyreduceditsstampdutyto encouragehousingtransactionsinordertocounteractthepandemic-caused slowdown.AlthoughMumbai'scurrentstampdutyratesarearound6%ofthe property'svalue,anextra1%LocalBodyTax(LBT)isapplicableinselectdistricts oftheState.Thane,Pune,Bhiwandi,Nagpur,PimpriChinchwad,Ahmednagar, Amravati,Nashik,&NaviMumbaidistrictsallchargeforit.

Maharashtra's most recent fees for registration and stamp duty

Stamp Duty rates (Male) Stamp Duty rates (Female) Registration Charges (for properties worth Rs 30 lakh and lesser) Registration Charges (for properties above Rs 30 lakh) Mumbai 6%(Stamp duty5%+1% MetroCess) 5%(Stamp duty4%+1% MetroCess) 1%ofthe propertyvalue Rs30,000 Thane 7%(Stamp duty5%+ LocalBody Tax(LBT)1% +1%Metro Cess) 6%(Stamp duty4%+ LocalBody Tax(LBT)1% +1%Metro Cess) 1%ofthe propertyvalue Rs30,000 Nagpur 7%(Stamp duty5%+ LocalBody Tax(LBT)1% +1%Metro Cess) 6%(Stamp duty4%+ LocalBody Tax(LBT)1% +1%Metro Cess) 1%ofthe propertyvalue Rs30,000 NaviMumbai 7%(Stamp duty5%+ LocalBody Tax(LBT)1% +1%Metro Cess) 6%(Stamp duty4%+ LocalBody Tax(LBT)1% +1%Metro Cess) 1%ofthe propertyvalue Rs30,000 Pune 7%(Stamp duty5%+ LocalBody Tax(LBT)1% +1%Metro Cess) 6%(Stamp duty4%+ LocalBody Tax(LBT)1% +1%Metro Cess) 1%ofthe propertyvalue Rs30,000 Pimpri Chinchwad 7%(Stamp duty5%+ LocalBody Tax(LBT)1% +1%Metro Cess) 6%(Stamp duty4%+ LocalBody Tax(LBT)1% +1%Metro Cess) 1%ofthe propertyvalue Rs30,000
Cities

An example of stamp duty payment in Pune female homebuyer

Thestampduty,whichincludes1%LBTand1%MetroCess,willbepayableat6% ofthepropertyvalueifafemalehomebuyerpurchasesapropertyinPuneforRs50 lakh.

Stampdutyof4%onRs.50lakhsareequaltoRs.2lakhs.

LBTat1%equalsRs50,000.

MetroCessat1%isequaltoRs50,000.

ApropertyvaluedRs.50lakhswillrequireatotalstampdutypaymentofRs.3lakh.

Accordingtotheanalysisabove,awomanhomebuyerinPunewouldbeabletosave Rs50,000onapropertyvaluedatRs50lakh.Forfemalepropertyowners,stamp dutyrefundratesarecomparablethroughouttheState.

Maleandfemalecustomerspaythesameregistrationfee.Forhomescostingless thanRs30lakh,thefeeis1%ofthepropertyvalue;itiscappedatRs30,000for propertiescostingmoreoverRs30lakh.

Male homebuyer

IfamanpurchasesaresidenceinPuneforRs.50lakhs,thestampdutywillbepaid atarateof7%,plus1%eachfortheLBTandMetroCess.

5%stampdutyonRs.50lakhsareequaltoRs.2.5lakh.

LBTat1%equalsRs50,000.

MetroCessat1%isequaltoRs50,000.

ApropertyworthRs50lakhwillrequireatotalstampdutypaymentofRs3.5lakh.

Maharashtra's 2022 stamp duty rates

AonepercentMetrocessonrealestatetransactionswasreinstatedbytheStatein April2022inthecitiesofMumbai,NaviMumbai,Pune,Thane,&Nagpur.The additionalmetrocessintheseStatemicromarketsdidnotaffectthestampduty exemptionforfemalehomebuyers.

Maharashtra Stamp Duty Rates in 2021

TheStateraisedthestampdutyby1%,bringingitto3%.Incorporatingthis modificationtookplacebetweenJanuaryandMarchof2021.TheStatedid, however,announcethatthestampdutywouldreturntothepre-pandemicrateof 5%beginningonApril1,2021,duringtheMaharashtraBudgetforFY2021–22.For propertytransfersmadeinwomen'snames,theydidneverthelessannouncea1% rebate.

Maharashtra Stamp Duty Rates in 2020

InanefforttomaintainhousingsalesduringCOVID-19,theStateprovidedathree percentstampdutyrebate.FromSeptember2020untilDecember2020,atwo percentstampdutywasineffect.

How have the changes to the stamp duty affected home sales?

IndustrysourcesindicatethatresidentialrealestatepricesintheState,particularly intheMumbaiMetropolitanRegion,havefallenbyabout10%.(MMR).Despitethe pricereduction,purchasersdecidedtopostponetheirtransactionsbecauseofthe epidemic.AstheStateannouncedareductioninstampduties,theinventory overhangexperiencedsomealleviation.Therebatewaspraisedbyindustry veteransbecauseitbenefittedthemiddle-classsegment.

AlthoughtherearecurrentlynoexemptionsfromtheState'sstampduty,keeping theonepercentrefundforfemalepurchasersisstillagoodidea.Theglobal economyhasbeenattemptingtocombatthestrainsofinflation,whicharealsofelt inIndia.SinceMay2022,therehavealreadybeensixchangestothereporate. Homebuyershavetypicallyattemptedtofinalizetheiragreementsbeforemaking anychanges.Inthiscircumstance,Maharashtra'srebateprogrammeforfemale homebuyersisespeciallymotivatingforthemarket.

In conclusion

TheStategovernmentmadeawisechoicebygrantingstampdutyrebatestofemale owners.Itisanticipatedthatthiswillencouragemorewomentopurchasehomes andboosttherealestatemarket,particularlyinthecheapandmiddle-classprice ranges.

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