Absorb 1% Stamp Duty For Benefit Of Home Buyer – Real Estate Developers Association Urges Its Members

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Pune, January 12, 2021: The Managing Committee of Confederation of Real Estate Developers Associations of India (CREDAI) Pune Metro has appealed to its members to extend the benefit of reduction of Stamp Duty by 1% till March 31, 2021, in respect of the sale of residential property.

The Government of Maharashtra vides its Notification dated August 31, 2020, reduced the Stamp Duty from 5% to 2% for the period from September 1, 2020, to December 31, 2020. Such a reduction benefited the home buyers and the number of transactions registered for property sale increased substantially. For instance, the number of documents registered in September 2020 was 2.48 Lacs, in October 2.74 Lacs, November 2.75 Lacs and in December 2020 it was the highest at 4.59 Lacs.

Suhas Merchant, President CREDAI Pune Metro said, “We approached the Government of Maharashtra and requested them to continue the stamp duty concession up to June 2021 to boost the Real Estate Sector. Primarily because more than 300 industries are dependent on this sector, which contribute towards employment generation and also in GDP.”

“However, the state Government so far has not considered our request. Thus, the managing committee of CREDAI Pune Metro has recommended all its members to extend the benefit and absorb the 1% of the stamp duty in the interest of the home buyers, which is taken away by the Government from January 2021.

It may be noted that the current stamp duty on residential properties is 3% and the same shall be in effect till March 31, 2021. The Managing Committee of CREDAI Pune Metro has urged its members to bear the cost of 1% stamp duty so that it comes to only at 2% for the home buyer till the end of March.

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