Maharashtra may cut stamp duty on residential properties to push affordable housing
The stamp duty rates will be rationalised with 1% levy for EWS houses, 2% for LIG
May 16, 2015
Source : The Economic Times (


MUMBAI: Home buyers in Mumbai and the rest of Maharashtra are set to receive a major relief as the state government is planning to reduce the stamp duty on residential properties spread over less than 750 sq ft for the economically weaker, lower income and middle income groups.
The stamp duty rates will be rationalised with 1% levy for houses for economically weaker section (EWS), 2% for low income group (LIG) houses, and 3% of the agreement value for middle income group (MIG) houses. Buyers of higher income group (HIG) apartments will continue to pay stamp duty at current rates.
At present, home buyers pay 5% stamp duty on ready reckoner rates -government specified rates -or market rate, whichever is higher. In a far-reaching measure, the policy has also proposed that the stamp duty will be calculated for these segments on the basis of market value at which the transaction is concluded as mentioned in the agreement.
The state government's draft housing policy , that has proposed these changes, has defined EWS houses as residences spread over up to 269 sq ft, LIG houses spread over 270 to 538 sq ft, MIG houses as 539 to 753 sq ft, while any house spread over more than this area is defined as HIG. Registration charges for these houses will also be lowered to the standard Rs 1,000 per transaction against the current levy of Rs 25,000.
All of these proposed measures are aimed at making housing units, which are less than 750 sq ft, relatively affordable by reducing the stamp duty burden for home buyers.
"Home buyers stand to gain on two counts as the stamp duty rate is being reduced and the base will also be lower for these levies. In most of the high-value pockets of Mumbai and other cities, ready reckoner rates have already moved above the market value and therefore stamp duty on market rate will be effectively lower," said Manish Kumar, managing director of Strategic Consulting at JLL India.
Ready reckoner rates are revised every year based on weighted average of transactions concluded in the year gone by . Earlier this year, the state government had raised these rates by over 30% in most pockets of Mumbai.
Following this increase, ready reckoner rates had moved above market values prevailing in many localities. While the average increase across the city is between 15 and 20% this year, the highest rise stands at about 40%.For 2014 and 2013, the state government had raised the ready reckoner rates by an average 13%.
Areas such as Worli, suburbs, including Goregaon, Borivali, Malad, Chembur, Ghatkopar and Vikhroli, have seen rates go up by as much as 30-40%, and were among the most affected areas.

Latest Realty News

May 16, 2015
NOIDA: Builders with housing projects in Noida Extension (renamed Greater Noida West) have let a huge sigh of relief
May 16, 2015
THANE: High-rises may soon stand tall in the old Thane city
May 16, 2015
NAVI MUMBAI: Development is the need of any city, but with it also comes many challenges
May 16, 2015
NEW DELHI: Once bitten twice shy seems to be the mantra for real estate investors these days
May 15, 2015
NEW DELHI: In a fresh order against DLF, Competition Commission has found the realty giant guilty of indulging in "unfair and abusive" business practices in sale of apartments
May 15, 2015
NEW DELHI: Bengaluru-based builder Sobha Ltd has signed an MoU with pipe manufacturer Indian Hume Pipe Company to develop a residential group housing project
May 15, 2015
NEW DELHI: Delhi Development Authority (DDA) is all set to auction 152 premium apartments at Commonwealth Games Village in June
May 15, 2015
MUMBAI: Real estate industry hailed the Centre's decision to bring in a law to check `benami' transactions
May 14, 2015
CUTTACK: District and civic authorities identified nearly 500 unsafe government and private buildings here
May 14, 2015
NEW DELHI: State-run National Buildings Construction Corp (NBCC) is betting on the redevelopment of millions of square feet of vacant government property

Latest Realty News Of State

Realty Talk's