September 23, 2020: Following Maharashtra and Madhya Pradesh’s governments’ lead to reduce stamp duty rates to improve dampened housing demand, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has suggested the state government to reduce stamp duty on registration of properties by 2% until August 31, 2021. The stamp duty in the state currently ranges from 5 percent to 7 percent of the property value.
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It has also recommended that the registration fee levied for agreement to sale documents should be capped at INR 2,000 from the current 25% of the stamp duty.
“The UP-RERA authority has sent its recommendations to the state government last week. We have proposed that the state government may consider reducing stamp duty by two percentage points so that more registries can be done,” said Rajive Kumar, chairman, UP-RERA, adding the proposal is for a single rate cut.
Real estate developers said that reduction in stamp duty is much needed considering that demand has been hit following the pandemic. To read more about stamp duty click here.
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Reduction in stamp duty can help reverse the sluggish demand. It would prove to be a win-win for all stakeholders. Not only will it help bring more fence sitters into the market, it will also help offload unsold inventory,” said Amit Modi, director ABA CORP and president (elect), CREDAI, Western Uttar Pradesh.
The move will make these places an attractive destination for buyers, especially considering the fact that Jewar Airport is coming up in the vicinity.
Madhya Pradesh government has also announced that it was reducing stamp duty by 2 percent in municipal areas to boost the stagnant real estate market hit by COVID-19. The reduction is valid until December 31.
Housing and Urban Affairs Secretary Durga Shanker Mishra had said on August 28 that the Maharashtra government’s decision to reduce stamp duty on registration of properties is a “good step” and will have a “positive impact” on price reduction.
“We had given suggestions to all the states to reduce it. The Maharashtra government has done it. We will pursue with others (states). It’s a good step by the Maharashtra government. It will have a positive impact on cost reduction,” he had said.
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