MUMBAI: While the fiscal deficit in the ongoing financial year 2024-25 is expected to widen, the revenue collection from stamp duty and registration has dipped compared to the cumulative collection in the past two years. The collection from stamp duty and registration until December 31 is ₹39,767 crore or 72.3% against the target of ₹55,000 crore set for the financial year, which is much below the collection till the corresponding month in the previous two years.
Stamp duty and registration are the third highest source of income for the state after goods and services tax, and sales tax. The state registered a whopping growth in the sector in the last three years, resulting in the accumulation of revenue more than the target. This year, however, it was comparatively low at the end of nine months, on December 31. The state has reported registration of 19.90 lakh documents, including sale, lease, memorandum of understanding, until December 31, with the total revenue of ₹39,767 crore generated from it.
In comparison, the revenue generated until December 31, 2023, was ₹35167 crore or 78.15% of the target of ₹45,000 crore for 2023-24 and 93.33% till December 31, 2022, against the target of ₹32,000 crore for 2022-23.
The relatively low collection has posed questions over the achievement of the target of ₹55,000 crore for the ongoing financial year. “Two months – August and October – saw the collection of over ₹5,000 crore, though it dipped in the last two months. Collection of over ₹15,000 crore in the remaining three months seems to be difficult. In the wake of the rising fiscal deficit, the government may increase the target at least by ₹3,000 crore during the budget in March, as it has been doing for the last few years, making it more challenging to achieve it,” said a government official.
The department, however, expects the collection to improve in the remaining three months. “The collection of stamp duty and registration always increases in March, the last month of the fiscal, fearing the rise in the ready reckoner rates. Since there has been no revision in the ready reckoner rates for the last three years, it will happen this year and will come into force from April 1. This will see a whopping rise in collection in March, helping us to achieve the target. In fact, we expect to cross the target because of the high rate of registration in March,” an official from the revenue department said.
