The cut by half per cent in Stamp duty from Jan too

 

 

 

Considering the rush to Sub-Registrar office all over Maharashtra, Government has made some modification in Stamp Duty fees to be charged between January to March 2021. The registrations made between that period was to get discount of one per cent instead of two that was to be availed till December 31, 2020. But Government on Tuesday gave some respite to the people paying stamp duty between January and March 2021 by facilitating them with the discount of 1.5 instead of one per cent. As per earlier announcement people were supposed to pay stamp duty of 4 per cent between that period now they have to pay 3.5 per cent. Government had announced cut in stamp duty by two per cent.

 

The actual stamp duty being charged was 5% but Government has cut down it by two per cent for the registration to be done between September 2020 to December 31, 2020. Government has taken this step considering the heavy losses the realty sector suffered during pandemic. Obviously people gathered in large number to pay stamp duties. Government had made it clear that after December 31, the stamp duty would be increased to 4, so from January to March it was expected to rise to 4 per cent. After March, the original rate would be restored which is 5 per cent. Now Government on Tuesday has decided to reduce the stamp duty fee by half for the transactions to be made between January and March 2021.

 

The Stamp duty was to be paid 4 per cent from January to March, 2021. After Tuesday’s decision the stamp duty further reduced to 3.5 per cent for the registration done during January 2021 to March 2021. This decision has given new lease of life not only to developers, builders but also to the middle class consumers who otherwise have to collect money with so much stress. Meanwhile thronging of people at Sub-Registrar office for paying the stamp duty to avail discount, has given a boost to the State revenue too. According to rough estimate the revenue has increase by over 60%.

 

Once the person pays the stamp duty before December 31, the validity of that stamp duty continues for next three months, so this is not new. But common public don’t know about the technicalities of stamp duty. With this cut in Stamp duty, Government has taken one more wise decision by increasing validity to four months. Obviously, there was a fear among common public that as the limit for paying three per cent stamp duty will end on December 31, so the validity too would end on the same day. With the clearcut announcement by Revenue department, the people heaved a sigh of relief.