Maharashtra hikes stamp duty on realty deals
Currently on a ready reckoner rate of Rs 1 crore, for the first slab of Rs 5,00,000, the stamp duty is Rs 7,600. For the balance, it is calculated at 5 per cent which will be Rs 4,75,000.
It is 2012, and Prithviraj Chavan, CM of Maharashtra, is already doing a realty check. The government has started the year by raising the ready reckoner rate in the state by 5-30 per cent to check underpricing of property and stamp duty evasion.
Currently on a ready reckoner rate of Rs 1 crore, for the first slab of Rs 5,00,000, the stamp duty is Rs 7,600. For the balance, it is calculated at 5 per cent which will be Rs 4,75,000.
Therefore, total stamp duty: Rs 7,600 plus Rs 4,75,00 comes out to be Rs 4,82,600. Now with ready reckoner up by average 20 per cent, the base rate of the property will have to be atleast Rs 1.20 crore and the stamp duty payable goes up to Rs 5,82,600.
But while the government may get to collect more revenues, rising interest rates has pushed sales down by 20 per cent in Mumbai alone and developers are wary of subsequent rise in property prices.
“The government has already seen a dip in the stamp duty collection and with this new rate. We will see property rates up and sales dropping, so where will we go?” said Paras Gundecha, MCHI president.
It looks like a tough year for the developers in Maharashtra who were looking at sales revival after last year, but there is a silver line for buyers with Maharashtra government’s new motto of brining more transparency in the sector. Cabinet has approved Maharashtra Housing Regulation Act which will make its way to the state legislature this year.
The act once passed by the state assembly is also expected to bring in more transparency in the sector.
Maharashtra is set to be the first state to get a 3 member real estate watchdog to handle all property transaction disputes. Developers will have to separately list down price charged for common terrace, staircases and parking space.
“It will bring in more transparency as developers will not be able to put a price on ad-hoc basis, they will have to declare it openly to the consumers,” said Amit Goenka, National Director - Capital Transaction at KnightFrank.
So even as the government tries to regulate the realty sector, builders are hoping that despite these regulations this new year is a happy one for clocking in much needed sales.