In a bid to boost the sluggish real estate market hit by Covid-19, the Maharashtra government has decided to reduce stamp duty on property registrations to 2% from 5% for transactions between September 1 and December 31, 2020.
Stamp duty will be 3% for agreements to be registered between January 1, 2021, and March 31, 2021.
Realty developers expect the reduction in stamp duty charges, coupled with festive offers and other incentives, to give a fillip to sales activity. Mumbai is the most expensive property market in the country.
Following the lockdown in March, the Maharashtra government had decided to keep readyreckoner rates unchanged for the current financial year.
In Mumbai, property registrations had picked up in July, compared to what was witnessed in the April-June quarter. While stamp duty collections from real estate activities were seen improving, they remained below the pre-Covid-19 level.
Stamp duty collections stood at ₹242 crore in July against ₹169 crore in June and ₹470 crore in February prior to the virus outbreak, and subsequent lockdowns, according to government data.