In an effort to boost real estate deals and encourage construction business, the Maharashtra State government has extended the stamp duty waiver period for investors from one to three years. Earlier, investors had to sell their properties within a year of buying them to avail the waiver benefits . Post the disruption of the real estate market by the first wave of the Covid-19 pandemic in 2020, the Maharashtra State government reduced the stamp duty rate to 2% and 3% during the period of September - December 2020 and January - March 2021 respectively. The stamp duty rate in the state prior to the reduction was 5%.
Investors can now avail of the benefit of stamp duty waiver on a resale made within three years of the purchase of the property. On such deals, stamp duty will be payable only on the price difference between the purchase and the selling price of the property instead of the entire amount . This is beneficial to the investors because they can avail secure and transferable title to the property immediately on investment without incurring additional costs. It is reported that at present about 20% of property buyers purchase for purely investment purposes. This stamp duty waiver extension will boost such buyers who would now be able to sell their properties anytime in three years to avail the waiver benefits. New investors will also start considering real estate as an attractive option as compared to stock market, mutual fund, gold, etc .
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