Maharashtra Finance Minister has asked officials of
the Department
of Registration and Stamps to rationalise ready reckoner
rates to
increase revenues, instead of hiking stamp duty on
property deals.
The ready reckoner rates are official rates of the property
for the
purpose of computation of stamp duty.
Stamp Duty Increases To 6% In Mumbai
Update on Feb 14, 2019: In a move that will make
real estate transactions more
expensive in Mumbai,
stamp duty in the city has been
increased to six per
cent on all property transactions.
The new rates will be
applicable from February
8, 2019.
It was in November last year that
the Municipal
Corporation Act was passed
in the Maharashtra Legislative
Assembly to levy one per cent
additional surcharge on stamp
duty on property
transactions. The state government had published
the draft of the Mumbai Municipal
Corporation (Second Amendment)
Act, 2018, and had inserted Section
144 F to levy the new surcharge
on certain property transactions.
These would include sale, leasing
and gifting of
property.
This would mean a property worth Rs
1 crore will attract another
tax component worth Rs 1 lakh.
Earlier, a buyer used to pay
Rs 5 lakh as a stamp duty and
Rs 30,000 as registration charges
for a flat Rs 1 crore.
In 2017, the Brihanmumbai Municipal
Corporation
had proposed
to levy the surcharge on all
property transactions in
Mumbai apart
from stamp duty and
registration cost in the Budget
of 2017-18.
Property market experts are
considering it as a drastic
step which
will further impact the sentiments
of property investors.
The move is particularly
discouraging for the mid-segment
homebuyers
who are considering real estate
investment due to easy
availability of
options and soft interest rates
currently.
Impact on Mumbai property market
Property in Mumbai is exorbitantly
priced and most of
the demand is
moving towards Navi Mumbai and
Thane. Now, those
who are upgrading
from the suburbs to the Island
City will be the ones who
would be most
affected. If the surcharge is
imposed, homebuyers will
move to Thane and
Navi
Mumbai for their housing needs more actively.
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