Maharashtra government revises stamp duty rates for select property transactions

1. Stamp duty rates revised for documents required for awarding work contracts

The Maharashtra government has decided to revise the stamp duty structure for registration of documents that are required for awarding work contracts, amalgamation of plots, restructuring, division and mergers to an unspecified amount depending on the value of the amount involved in awarding these contracts, the government statement said.

Registration of documents entered into during mergers, amalgamations, restructuring of companies currently attract a stamp duty of around ₹500. With the government deciding to revise the rates, these fees will be charged as per the market value of the fixed and moving assets of the company, it said.

2. Slum Rehabilitation Authority scheme to attract stamp duty of ₹500

The state cabinet has also said that going forward no document will be registered for ₹100, which is the minimum amount that is charged for registering documents. 

It has now been proposed to increase the stamp duty from ₹100 to ₹500. This will apply in case of registering documents relating to slum rehabilitation projects among others. What this means is that the Slum Rehabilitation Authority scheme that would have otherwise attracted a stamp duty of ₹100 will now attract a charge of ₹500.

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It has also been proposed to increase the stamp duty levied for articles of association of a company to 0.3% from the earlier 0.2% for a maximum amount of ₹1 crore instead of the current ₹50 lakh, it said.

3. No change in stamp duty levied on properties bought by homebuyers

There will be no change in stamp duty charged for properties purchased by homebuyers. Currently, homebuyers in Mumbai have to pay a stamp duty of six per cent of the total property price and it is five percent for women homebuyers, said experts.

The stamp duty slab differs from city to city. The registration charges for property purchase is one percent for properties up to ₹30 lakh or ₹30,000 for properties above ₹30 lakh.

4. Approval to use 256 acres of salt pan land for Dharavi redevelopment

The Maharashtra government on September 30 also approved the acquisition of 255.9 acres of salt-pan land from the Central government on lease to house those who were ineligible to get homes under the Adani Group-led Dharavi Redevelopment Project.

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The state government plans to use the acquired salt-pan land to develop homes under the rehab component of the Dharavi redevelopment project. This means that it will now use this land to develop rental, low-cost and affordable housing for residents who were earlier ineligible to get redeveloped homes in Dharavi.

5 Govt gives nod to rental housing scheme for ineligible slum dwellers under Dharavi redevelopment project

The Maharashtra government cabinet also gave instructions to the authorities to complete the survey of slum dwellers in Dharavi and identify eligible and ineligible slum dwellers.

Also Read: Mumbai real estate market: 5 things you need to know about Dharavi redevelopment project

The government has also given a go ahead for drafting a rental housing scheme for the ineligible slum dwellers further clarifying that it will be implemented for the Dharavi redevelopment project, it said.