Amid the revival of the economy, especially the realty sector, the Maharashtra Government has reduced stamp duty on lease agreements of immovable property applicable for 29 and more years to 2% from 5% in Mumbai till December 31 and it will be 3% from January 1 to March 31. This is on the lines of stamp duty reduction which was introduced in two tranches from September to December 2020 and from January to March 2021.
The government, which is struggling to cope up with the revenue shortfall reported due to coronavirus pandemic and lockdown, hopes to mop up additional stamp duty and registration charges by the end of the fiscal.
The revenue and forest department in its order said, "The benefit of stamp duty reduction shall apply only to the instrument or documents of lease of any immovable property being executed for the period exceeding 29 years or in perpetuity.’’
The project proponents or purchaser or lessor or lessee of any immovable property under any user or any subsidiary company of any project proponents which has availed the remission or reduction as per any other order or policy of the state government shall not be entitled for remission or reduction of stamp duty under this order.
Further, the department has said no refund shall be granted where full stamp duty has already been paid.
The department officer reminded that the government had cut stamp duty rates from 5 per cent now to 2 per cent in urban areas of the state till December 31 and 3 per cent till March 31, 2021. Urban local body tax has been retained at 1 per cent.
Stamp duty rates have been cut from 4 per cent to 1 per cent in rural areas till December 31 and 2 per cent till March 31, 2021.
This has led to increased sales recovery and registrations in the financial capital.