By Rohit Sharma
Are you planning to buy a new house in Mumbai? Then be ready to pay 1 % additional stamp duty surcharge on the value of a property. The stamp duty has increased from the existing 5% to 6%. This move to hike stamp duty is to fund infrastructure projects in the city.
However, this will have a direct impact on “Housing for All by 2022” mission, the number of registration will reduce due to this move, a source said.
The bill says, “The stamp duty leviable under the Maharashtra Stamp Act, on the instruments of sale, gift and usufructuary mortgage, respectively, of immovable property shall, in the case of any such instrument relating to immovable property situated in the area of Brihan Mumbai Municipal Corporation in which one or more Vital Important Urban Transport Projects be increased by a surcharge at the rate of one per cent, in case of instrument of sale or gift, on the value of the property so situated and in case of an instrument of usufructuary mortgage, on the amount secured by the instrument as set forth in the instrument and shall be collected accordingly under the said Act.”
The state Legislative Assembly on Tuesday approved an amendment of Mumbai Municipal Corporation Act and hiked 1 % of stamp duty to fund the projects like metro, freeways, sea links.
According to industry experts, “There is approx 3 lakh unsold inventory in Mumbai and after the hike of 1% will delay in the decision making of the customer and will affect their budget.”
The industry has still not come out of GST impact and after an increase in stamp will slower the sale of flats, according to a developer who did not wish to be named.