State sees dip in revenue collection after relief in stamp duty

The Maha Vikas Aghadi government's relief on stamp duty percentage to new homebuyers has led to a decline in revenue collection in the month of October and November as compared to the previous year in the same months.

According to the records available of the number of properties registered at Mumbai city and suburbs collectors office, in October 2020, the stamp duty collection was Rs 385.99 crore against the previous year, which was Rs 592.2 crore. Similarly, in November 2020, the revenue made was Rs 365.27 crore against the previous year stamp duty collection of Rs 584.84 crore. Meanwhile, the earnings recorded through stamp duty includes all types of property registration and not just newly bought properties. Despite this, the earnings made have not crossed the previous year's record.

Interestingly, in both the months -October and November 2020- the number of properties registered were 35,619 and 35,028, respectively; almost equal to the number of properties registered in 2019. However, the reduction in stamp duty to two per cent from five from September, 2020, has led to a fall in revenue earnings by more than Rs 400 crore in these two months in 2020.

Besides this, Legislator Rais Shaikh has also made a demand to Chief Minister Uddhav Thackeray that the reduction in stamp duty should be continued up to March 2021. Reportedly, the Maharashtra government has offered three per cent discount on stamp duty charges to new homebuyers till December 2020. Buyers now will have to pay only two per cent stamp duty instead of five per cent. Thereafter, from January to March 2021, the discount will be two per cent.

No. of Registration & Earnings:

October 2019:

Mumbai City -- 5,484 -- Rs 204.77 Cr

Mumbai Suburbs -- 25,732 -- Rs 387.43 Cr

October 2020:

Mumbai City -- 6,742 -- Rs 131.72 cr

Mumbai Suburbs -- 28,877 -- Rs 254.27 Cr

November 2019:

Mumbai City -- 5,604 --Rs 211.46 Cr

Mumbai Suburbs -- 23,503 -- Rs 373.38 Cr

November 2020:

Mumbai City- 6320 -- Rs 124.19 Cr

Mumbai Suburbs -- 28708 -- Rs 241.02 Cr

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