NEWS

Stamp Duty On Property Deals In Mumbai Now Raised To 6 Percent

February 12, 2019

Mumbai
The state government on February 12 issued a notification introducing an additional one percent of stamp duty to be collected as a surcharge on property transactions in Mumbai. The reasoning behind the move is the state needs funds to finance major infrastructure projects currently underway in the city, especially the Metro. The extra duty will be charged on all property deals from February 8.

Credits : magicbricks.com

The stamp duty in Mumbai will now increase to six percent of the property transaction amount, which means real estate will become even dearer in the city.

The state expects to generate more than Rs 1,000 crore in this way. This revenue will be collected by the Stamps and Registration Department and passed on to the Mumbai Metropolitan Region Development Authority (MMRDA), via the Urban Development Department.

The MMRDA used to earlier sell lands in Mumbai and generate funds. With this land bank drying up, the state Assembly cleared an amendment in the Mumbai Municipal Corporation Act that authorizes the Brihanmumbai Municipal Corporation (BMC) to levy an additional one percent on stamp duty as the surcharge.

A senior officer of the Stamps and Registration Department said the notification was issued on February 11 and is effective from February 8. Hence, a recovery will be done for all documents registered on February 8.

The state government is currently facing a financial mess. It has begun work on expensive projects in Mumbai, such as nine Metro routes, and the Versova-Bandra Sea Link (VBSL), which will cost more than Rs 1lakh crore.

Moreover, recently, the MMRDA told the Mumbai Port Trust to share the cost of the Metro 4A, as it would serve the area to be developed by the port trust.

A stamp duty consultant told Mirror, "It will be now difficult to recover the additional stamp duty for all documents presented on February 8, and there will be disputes. The department should have released the circular and given a later date for implementation."

An officer from the Stamp and Registration Department said, "The documents registered on February 8 are not yet scanned. All those who people whose documents were scanned will be issued a notice for the additional duty of one percent. The documents not scanned have been kept on hold."

Hitesh Thakkar of Intime Service Mumbai Private Limited said, "Two days, the government reduced the GST on flats from 12 percent to five percent, and now the state has increased stamp duty by one percent. This will dampen spirits in the market."

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Source:magicbricks.com