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In a setback to the real estate industry as well as flat buyers, the state government on Wednesday decided not to extend the cut on stamp duty on property registrations. Ready reckoner (RR) rates, though, remain unchanged for the 2021-22 financial year.
The slashing of stamp duty in Mumbai from 5% to 2% from September to December 2020, and 3% till March 31, 2021, had boosted residential realty sales.
On a brighter note, the 1% stamp duty waiver for women home buyers, as announced in the state budget on March 8, would come into effect from Thursday. The concession is only for residential units and not for land. Besides, the concession will not be applicable if there is a male co-owner of the unit.
Introduction
On 9 February 2021 the Maharashtra governor promulgated the Maharashtra Stamp (Amendment and Validation) Ordinance 2021 with immediate effect. The ordinance introduced two key amendments to the Maharashtra Stamp Act 1958 concerning:
the stamping of documents that encompass multiple transactions; and
stamp duty rates for agreements that relate to:
the creation of a mortgage by deposit of title deeds; and
mortgage deeds.
Stamping of instruments relating to several distinct matters or transactions
Section 5 of the Maharashtra Stamp Act, which deals with the stamping of various instruments that relate to several distinct matters, has been amended retrospectively with effect from 11 August 2015. The section now includes instruments that relate to not only distinct matters but also distinct transactions.
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FPJ Exclusive: Mystifying tweaking of ready reckoner rates by MVA government
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Mumbai: The Department of Registration and Stamps has substantially reduced or increased the ready reckoner (RR) rates in certain zones in Mumbai a few months after it came into effect from September 12. This has been done following clearance by the Inspector General of Registration (IGR). The department decision has been attacked by the opposition while some realty players admitted it would largely benefit their competitors.
RR rates are the fare rates of immovable property, on the basis of which market value is calculated.
As per the notification issued in the first week of December in Kanjurmarg, currently hogging the headlines over the Metro 3 carshed controversy, RR for residences has been reduced to Rs 1,24,320 per sq mt from Rs 1,52,350, for offices Rs 1,30,700 from Rs 1,60,450 per sq mt, for industry Rs 1,18 400 from Rs 1,44,510 per sq mt.