Real estate developers had been asking for a reduction in stamp duty following the lockdown to motivate homebuyers to purchase homes all through the pandemic.

In a bid to motivate buying in the retail zone hit through COVID-19, the Maharashtra authorities on Tuesday quickly decreased stamp duty on housing units from 5 percent to two percent till December 31, 2020.

According to a document via Moneycontrol, stamp duty from Jan 1, 2021, till March 31, 2021, will be three percent. The decision was once taken at a state cabinet assembly held on Tuesday.

Real estate builders had been asking for a reduction in stamp obligation following the lockdown to inspire homebuyers to purchase homes throughout the pandemic.

“The pass will gain the consumer and foster demand introduction alongside giving a stimulus to the allied industries coupled with employment generation. Whenever there has been a reduction in the stamp duty in the past, it has solely leads to an expansion in income in the authorities treasury, stated Jaxay Shah, Chairman, CREDAI National.

“This is a proactive measure taken by means of the authorities and used to be most needed. It will supply buyers an incentive to purchase homes, supply them the alternative to take a choice to buy,” Satish Magar, national president of the Confederation of Real Estate Developers’ Associations of India instructed Moneycontrol.

In Maharashtra, stamp duty expenses are 5 percent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 percent in others. A 2-3 percent reduction in charges will result in considerable financial savings for domestic buyers

The Maharashtra authorities on March 6 had introduced that it is lowering stamp duty on residences with the aid of 1% for Mumbai, MMRDA Region and Pune for two years.

Stamp duty charges in different primary states generally hover somewhere between 5-8 percent, however, they are lower in some states if property registration is completed in the name of a woman. Delhi, Uttar Pradesh, Rajasthan, Punjab, and Haryana provide leisure in stamp duty for female buyers. The exemption on stamp duty levels from 1-2 percentage in distinctive states.