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    NAREDCO Maharashtra extends zero stamp duty benefit for homebuyers until December end

    Synopsis

    The government of Maharashtra has already reduced the stamp duty on property registrations to 2% --from earlier 5%--for transactions between September 1 and December 31. From January 1 to March end, the stamp duty will be 3% for registered agreements.

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    According to NAREDCO, the zero-stamp duty offered by them until October end pushed Mumbai’s residential realty sales by 300% in October from August.
    Realty developers body NAREDCO Maharashtra has decided to continue absorbing the reduced stamp duty on housing sales until December end to push demand for residential properties further. This will lead to zero stamp duty burden for homebuyers in Maharashtra.

    The government of Maharashtra has already reduced the stamp duty on property registrations to 2% --from earlier 5%--for transactions between September 1 and December 31. From January 1 to March end, the stamp duty will be 3% for registered agreements.

    Realty developers, who are part of National Real Estate Development Council (NAREDCO) in Maharashtra, will be paying the reduced stamp duty on behalf of the homebuyers.

    “It’s a win-win for both the homebuyers and the developers, as the zero-stamp duty window will bring more homebuyers of Maharashtra into the buying net. It will not only push the housing sales trajectory; but also send positive signals to the foreign investors to accelerate their investment plans into the sector flushing more liquidity to tighten the supply side,” said Ashok Mohanani, President, NAREDCO Maharashtra.

    Buoyed with a demand upsurge that pushed the housing sales in Mumbai and Pune to top the national sales charts with a share of 41%, NAREDCO Maharashtra is eyeing a similar kind of growth in the residential segment by December end with this stamp duty waiver.

    According to NAREDCO, the zero-stamp duty offered by them until October end pushed Mumbai’s residential realty sales by 300% in October from August.

    “The zero stamp duty intervention set the precedence and boosted the entire sector in a growth mode. It ensured a quick inventory turnover and the trend will continue in the long-run. The next fiscal will see more liquidity with the foreign investors coming in action,” Rajan Bandelkar, Vice Chairman, NAREDCO Maharashtra.

    The trade body also expects a major policy upheaval like the affordable rental policy of the government, the proposed housing policy of the Maharashtra state and the Finance Minister’s announcement providing tax relief to both the developers and homebuyers with respect to the relaxations granted under the Section 43 (CA) and Section 56 (2) of the Income Tax Act. These policies together will play a major role in shaping up the demand.


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