Stamp duty on property in Mumbai hiked by 1%

The Cabinet had on Tuesday approved a proposal for the increase in stamp duty on property transactions to fund major transportation projects such as the Metro and Monorail corridors.

Written by Sandeep Ashar | Mumbai | Published:October 9, 2015 2:01 am
home loans, pf, provident fund, home loans provident fund, EPFO, home loan guidelines, The new rate will come into effect once the government issues a notification.

The Maharashtra government has decided to allow a 1 per cent increase in stamp duty on property transactions, which will increase overall costs for home buyers in Mumbai, the country’s most expensive real estate market.

The Cabinet had on Tuesday approved a proposal for the increase in stamp duty on property transactions to fund major transportation projects such as the Metro and Monorail corridors. With this, the stamp duty in Mumbai will go up to 6 per cent although senior officials in the revenue department admitted that the Centre had issued guidelines urging states to cap stamp duty on property transactions at 5 per cent. The new rate will come into effect once the government issues a notification.

Senior officials also confirmed that the state government was actively considering a move to levy cess on Transferrable Development Rights (TDR) certificates as means to raise additional revenue. With increased revenue expenditure and revenue collection below par worsening the state’s overall financial position, the finance department is pushing for the move, sources confirmed.

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In fact, the plan was discussed in detail at a meeting convened by Finance Minister Sudhir Mungantiwar for mobilising additional revenue, sources said. Sources also confirmed that the Urban Development and Housing departments have opposed this move for now, claiming that it would come in the way of the government’s plan of making housing more affordable in Mumbai.

The TDR or floating floor space index (FSI) is an important component for builders redeveloping suburban properties because it allow additional construction rights over and above the usual FSI permitted on the plot.
“The move to levy cess on TDR, if approved, will hike construction cost for projects, impacting property prices in turn,” a senior official admitted.

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  1. S
    Sameer
    Oct 10, 2015 at 1:27 pm
    There is no place for middle cl in this country. Poor avail quota. Rich have money to play with. Middle cl is taxed heavily... Builders arm twist buyers.
    Reply
    1. A
      Awinash
      Oct 9, 2015 at 11:34 am
      I suppose the normal taxes which are collected are used only to pay MLAs ries and sustain their lavish lifestyle. Road taxes are collected to maintain and build roads but everytime a road is improved or a flyover built, the government immediately charges a toll. Proprty taxes and stamp duty goes to the Govt as pure profit with no liability from their side, but affecting the common man. The same Govt which claims that they are strapped for cash, will give huge sops to big builders, who in any case do not p on any benefits to home buyers. The CM is forever ready to go abroad with a huge delegation while claiming a revenue shortfall. Till there is more accountability in Indian politics, the common man will continue to suffer.
      Reply
      1. V
        VIKRAM
        Oct 10, 2015 at 11:54 am
        GOVT DOES NOT KNOW HEAD OR TAILS WHERE THEY ARE GOING,,,,,PUT SOME EDUCATED PEOPLE OR COMPANY LIKE TATA ,WHO ARE WILLING TO WORK ON .50PAISE PROFIT MARGIN ALSO.......PUT SOME SMART PEOPLE ON PLANNING BOARD COMMISSION.
        Reply
        1. V
          VIKRAM
          Oct 10, 2015 at 11:52 am
          THE BEST PLAN FOR FDI, TAKE A DEPOSIT OF 100MILLION $,THEN ALLOW WORK TO START, THIS MONEY KEEP IN BANKS, INTEREST ITSELF, WILL HELP THE ECONOMY...
          Reply