Maharashtra Stamp Duty Hike: Costs of Property May Rise

Stamp paper
The plot of land and Property buyers in Maharashtra will have to shell a little more for registering their purchase.

The Maharashtra state government has simplified the stamp duty structure for sale deed of immovable properties in its budget 2012-13; in the process hiking rates for buyers.

Gram Panchayats..!

Properties falling under gram panchayats will now attract a 2% duty on property value. Those areas under municipal councils will have a 4% rate and properties in urban areas including those under municipal corporations will have a 5%t duty.

Earlier, stamp duty was paid based on a  3 tier slab with a part of the duty being a flat rate, not linked to value. For instance, for a property valued above Rs. 5 lakh, the stamp duty was Rs. 7,600 plus 5% of the value above Rs. 5 lakh. This is now 5% on property value.

Therefore, if you wish to register a Rs. 50 lakh property in Mumbai, you will have to pay a stamp duty of Rs. 2,5 lakh now, instead of Rs. 2,32,600 earlier. That's Rs. 17,400 more. The effective duty will thus go up from 4.5-4.6 to 5%.

While the hike may not seem too high, seen together with the service tax hike from 10% to 12% (on constructed properties) in the budget and a tax collection at source imposed on sand in Maharashtra, costs of property purchases may rise.
Src: BL
Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

PERSONAL FINANCIAL PLANNING & TAX PLANNING 2024 April 28 Sunday 4 PM at CMA BHAWAN Chennai

 PERSONAL FINANCIAL PLANNING & TAX PLANNING" 2024  April 28  Sunday 4 PM at CMA BHAWAN Chennai