by THO
The Maharashtra government has decided to extend the stamp duty amnesty scheme for the third time until June 30, 2024, providing relief to property owners.
“…And whereas, the Government of Maharashtra considers it expedient to amend the said Order so as to extend the period of the second phase from the 1st March 2024 till the 30th June 2024 for the said Amnesty Scheme-2023,” the order said.
Earlier, the state government on January 31 this year had extended the term of the Stamp Duty Amnesty Scheme up to March 31 this year in the wake of low mobilization of revenue.
The stamp duty amnesty scheme
The stamp duty amnesty scheme is called ‘Mudrank Shulakh Abhay Yojana’. The scheme introduced in December last year is an attempt to encourage buyers to settle outstanding stamp duty dues by offering them discounts on penalty fees related to delayed stamp duty payments.
The Maharashtra government had said last year that the Scheme will be implemented in two phases to simplify its execution. The first phase started on December 1, 2023 and continued until January 31, 2024. The second phase began on February 1, 2024 and ends on March 31, 2024.
Also Read: State to waive off stamp duty on flats in integrated townships
Decision to stimulate the real estate market: Experts
Real estate experts said that the move is expected to stimulate the real estate market as more people will be encouraged to register their properties, thereby ensuring a regular flow of revenue collection.
“The Maharashtra government has demonstrated its commitment to addressing the concerns of property buyers and the real estate industry. This decision is likely intended to stimulate the real estate market by making it more financially feasible for buyers to finish their transactions. By lowering stamp duty fines, the government not only encourages more property registrations but also ensures a surge in revenue collections,” said Anuj Puri, Chairman – ANAROCK Group.
Also Read: Mumbai’s real estate hits a 12-year high; property registrations touch 11,742 units in Feb 2024
This extension will play a critical role in upholding the real estate market by encouraging more transactions, which will benefit all linked sectors and Maharashtra’s overall economic growth, he said.
Also Read: Govt proposes amnesty scheme to recover disputed stamp duty worth ₹2,900 crore
“Extending the stamp duty amnesty scheme till June 30, 2024, by the Maharashtra government is a prudent move that will provide much-needed relief and support to the real estate sector. This decision not only acknowledges the challenges faced by homebuyers but also underscores the government’s commitment to facilitating property transactions and stimulating economic growth.
By prolonging the scheme, the government has demonstrated its responsiveness ensuring continued momentum in the housing market,” said Prashant Sharma, president, NAREDCO Maharashtra.
This is good news for those looking to regularize their contracts where insufficient stamp duty was paid in the past. This extension allows for more flexibility for those looking to avail this amnesty scheme, said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
“With lower penalties under this scheme incentivizing the need for making relevant documents recognized under law, this scheme also allows the government to recoup unpaid duties. This scheme and its extension, however, should not be equated with paying insufficient duties and waiting for such schemes to be bailed out. It is always advisable to pay the appropriate stamp duties on registration and within time to ensure legal rights are adequately protected,” he added.
