Categories: Business

Purchasing home would be cheaper central government advise to reduce stamp duty. Good news for home buyers, housing ministry advises states to reduce stamp duty like Maharashtra

Photo: FILE PHOTO

Purchasing home would be cheaper central government advise to reduce stamp duty

New Delhi. The central government has praised the Maharashtra government's decision to reduce stamp duty on property registration. Housing and Urban Affairs Secretary Durga Shankar Mishra on Friday praised the Maharashtra government's decision to reduce stamp duty on property registration and advised other states to do the same to increase demand in the real estate sector. The ministry has also advised other states to reduce stamp duty to increase demand in real estate sector.

Durga Shankar Mishra, while addressing a webinar of Udyog Mandal PSD Chamber of Commerce and Industries, said that this will increase the demand in real estate sector. Also, the common people will get relief by paying a hefty amount in the name of stamp duty. This will reduce the total cost of the property. In simple terms, the common buyer will have to pay a lower price for the house if the stamp duty is reduced. Mishra assured that the ministry would seriously consider their various demands. It also includes a demand for changes in the income tax law of the real estate industry, which will enable builders to reduce the sale price of flats.

The Secretary of the Ministry of Housing said that an investment of Rs 9,300 crore has been approved from a special fund of Rs 25,000 crore created to complete the stalled housing projects across the country. He suggested states to reduce stamp duty to speed up sluggish demand in real estate during the Kovid-19 crisis. Mishra said, 'We advised all the states to reduce it. The Maharashtra government has done so. We will ask other states to do the same. The Maharashtra government has taken a good step. This will have a positive effect on reducing costs.

It is noteworthy that the Maharashtra government on Wednesday announced the reduction of stamp duty on sale deed documents of houses to be made between September 1, 2020 and December 31, 2020 to three percent. Whereas in the period from January 1, 2021 to March 31, 2021, it was decided to reduce the stamp duty to two percent. Currently the stamp duty is five percent in urban areas and four percent in rural areas. Stamp duty is a tax levied by the state government on property transactions which forms a major part of their income.

This post was published on August 29, 2020 3:44 am

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