What should home buyers know about stamp duty and registration charges?
Payment of stamp duty acts as proof of ownership in court while registration charges are paid to record execution of transaction Since the outbreak of the Covid-19 pandemic, demand for house property has slowed, with many postponing big-ticket purchases. In a bid to attract home buyers, the Maharashtra Government recently announced reduction in stamp duty rates on property purchases. It has lowered the stamp duty rate to 2 per cent (from 5 per cent) of the property value; this is applicable across Maharashtra from September 1 to December 31, 2020. The State has kept the stamp duty rate at 3 per cent from January 2021 to March 31. This reduction in stamp duty rates is expected to boost residential demand, and help developers bring down the level of unsold inventories in the market.