5% stamp duty for property registrations restored in Mumbai – Times of India

In a setback to the real estate industry as well as flat buyers, the state government on Wednesday decided not to extend the cut on stamp duty on property registrations. Ready reckoner (RR) rates, though, remain unchanged for the 2021-22 financial year.

The slashing of stamp duty in Mumbai from 5% to 2% from September to December 2020, and 3% till March 31, 2021, had boosted residential realty sales.
On a brighter note, the 1% stamp duty waiver for women home buyers, as announced in the state budget on March 8, would come into effect from Thursday. The concession is only for residential units and not for land. Besides, the concession will not be applicable if there is a male co-owner of the unit.
The RR rates, revised six months ago, would be continued for this financial year, stated the state circular issued on Wednesday evening. State revenue minister Balasaheb Thorat tweeted that regular rates would be applicable from April 1.
Confederation of Real Estate Developers’ Associations of India (Credai) national chairman Satish Magar told TOI the government had announced the stamp duty waiver as a short-term booster after the lockdown. “We had again approached the government for an extension of the concession for three months. The government had its compulsions and did not agree to the extension,” he said.
State inspector general of registration and stamps Shravan Hardikar said as per the government direction, the Annual Statement Rate for 2021-2022 would be the same as in 2020-21.
The RR rates for residential and commercial properties are announced on April 1 every year. In 2020, the revised rates were announced in September because of the Covid-19 pandemic.
On an average, the RR rates were increased by 1.74% last year. The highest average increase (3.91%) was registered in Pune district. In Mumbai, the average upward revision was 0.6%.
Credai national vice-president Shantilal Kataria said they had demanded reduction in RR rates as per Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995. “We are, however, happy the government has kept it untouched. A certain amount of buoyancy was witnessed in the last five to six months,” he said.
Suhas Merchant, national chairman of Credai’s statistics and standards committee, said, “We are happy to see our submission (on RR rates) has been considered.” Niranjan Hiranandani, managing director of Hiranandani Group and national president of Naredco, said while Maharashtra had played a “stellar role” by announcing the stamp duty waiver last year, it could have continued it. “We will request the state to reconsider its decision,” he said.