Maharashtra: No extension in stamp duty waiver, Ready Reckoner rates unchanged for 2021-22

PUNE: The state government on Wednesday announced it would not extend the 2% stamp duty waiver on property registrations, a condition that had boosted the real estate sector after the pandemic-induced lockdown, but kept the Ready Reckoner (RR) rates unchanged for the 2021-22 financial year.
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 plots of land. Besides, the concession will not be applicable if there is a male co-owner of the unit.

The state government had in August 2020 announced a 3% waiver on stamp duty from September to December and subsequently a 2% waiver from January-March in 2021 to boost the realty sector during the pandemic. The waiver had led to a significant upswing in property registrations.
The RR rates, which were revised six months ago, would be continued with for this financial year, stated the circular issued by the government on Wednesday evening. State revenue minister Balasaheb Thorat tweeted that the regular rates would be applicable from April 1.
Confederation of Real Estate Developers’ Associations of India (Credai) national chairman Satish Magar told TOI that the government had announced the waiver as a short-term booster after the lockdown.
“We had again approached the government for an extension of the concession for three months. The government has its compulsions and did not agree to the extension,” he said.
State Inspector General of Registration and Stamps Shravan Hardikar said that according to the government’s direction, the Annual Statement Rate for 2021-2022 would be the same as it was in 2020-21. The RR rates for residential and commercial properties are announced on April 1 ever year. In 2020, the revised rates were announced in September because of the Covid-19 pandemic.
On an average, the RR rates were increased by 1.74% last year. The highest average increase (3.91%) in the RR rates was registered in Pune district. In Mumbai, the average upward revision was 0.6%.
Credai national vice-president Shantilal Kataria said they had demanded reduction in the RR rates as per the Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995. “We are, however, happy that the government has kept it untouched. A certain amount of buoyancy was witnessed in the market in the last 5-6 months,” he said.
Suhas Merchant, immediate past-president of Credai (Pune Metro) and national chairman of Credai’s statistics and standards committee, said, “We are happy to see that our submission (on RR rates) has been considered.”
Niranjan Hiranandani, managing director of Hiranandani Group and national president of National Real Estate Development Council (Naredco), said while Maharashtra had played a “stellar role” by announcing the stamp duty waiver last year, it could have continued the arrangement. “We will request the state to reconsider their decision, he said.
Sachin Shingavi, president of the Association of Real Estate agents, said, “The decision will be beneficial to the builders and consumers. It will definitely have an impact on sales in near future.” Activist Shrikant Joshi said, “The government should have continued with the stamp duty concession for three more months.”
THE BOOSTER
In August 2020, the state government decided to slash the stamp duty on sale deed documents registered between September 1 and December 31, 2020, by 3%. The relaxation was to continue with the 2 per cent cut from January 1 to March 31, 2021
MONTH REGISTRATIONS REVENUE COLLECTION
September, 2020 2,47,609 Rs1,642.3 crore
October 2,74,235 Rs1,910.90 crore
November 2,74,773 Rs1,754.44 crore
December 4,61,247 Rs5,204.33 crore
January 2021 2,54,555 Rs2,149.85 crore
February 3,16,015 Rs1,851.72 crore
March 2,90,363 Rs2,891.56 crore
REVENUE TARGET
Rs28,000 crore: Regular revenue target every fiscal
Rs22,000 crore: The revised revenue target for this fiscal
Rs22,369 crore: Revenue collected till March 29 in this financial year
REVISED TWICE
The target revenue collection was first reduced to Rs15,000 crore for this financial year after the Covid-19 outbreak in 2020
After the registrations picked up and the revenue collection increased, there was an upward revision of the target to Rs22,000 crore
THE COLLECTIONS
Financial Year Documents Registered Revenue
2020-21* 2,664,318 Rs 22,369.30Cr
2019-20 28,22,961 Rs28,989.29cr
(*Till March 29)