Maharashtra government extends stamp duty waiver periodMarch 27, 2022 . Real-Estate Industry . 10 min read
The government of Maharashtra has extended the stamp duty waiver period for investors from one year to three years on the resale of the property. The bill also extends the tax-free benefits to those who sell their properties at a higher price than what they bought them for, but only if this is done within three years of purchase. Stamp duty is payable only on the price difference in such sales instead of the whole amount as before. Suppose if the rate in 2022 is say Rs. 50,000 and in 2025 it is Rs. 55,000 then additional stamp duty @ 5% will have to be paid only on the difference of Rs 5,000.
The Maharashtra government has announced that they will be extending the stamp duty waiver period for investors up to three years. This new rule means people interested in purchasing property can enjoy lower taxes when buying or building houses.
Expected impact of stamp duty waiver extension
In an effort to boost investor confidence in the real estate market, the Maharashtra government has extended the waiver period for stamp duty. Earlier, the investor would sell their properties within a year of buying them to earn the benefit of the waiver. With the new bill, investors can earn a stamp duty waiver on a resale made within three years of purchasing their property. The stamp duty is paid only on the price difference of property instead of the whole amount in such deals.
Reason for stamp duty waiver extension
Generally, it takes a minimum of three years to complete the project, and the same is mandatory in the conditions and regulations under RERA. However, due to the pandemic and general slowdown, there was an impact on the profit earned through such deals.
While explaining the bill, the authorities said they had received several representations from the real estate sector indicating losses in this current scenario. The purpose is to encourage sale-purchase deals while boosting investment amount with extension for waiver period increased up three years. The extension will benefit the State and earn high revenue through the stamp duty collection. Further, the push to the construction business will bring in more job prospects for youth in Maharashtra.
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