Mumbai, August 26: Chief Minister Uddhav Thackeray-led Maharashtra government on Wednesday had decided to temporarily reduce stamp duty on flats' registration from 5 per cent to 2 per cent till December 31. The state government claims to have taken the step to boost the stagnant real estate market hit by COVID-19.

Earlier reports arrived that both the Maharashtra and Karnataka governments were mulling to decrease the stamp duty rates. The initiative was has been taken to boost affordable and mid-segment properties sale during the festive seasons. Flat Buyers Entitled to Compensation if Possession Delayed, Says Supreme Court.

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According to the data, the new move will decrease the rate of 3 per cent stamp duty in Mumbai and Pune, which will result in the reduction of about Rs 1.5- lakh and Rs 2.25 lakh saving for a flat costing around Rs 75 lakh. It is to be known that builders have been demanding from some time to decrease the stamp duty as the housing sector has been badly affected since March 2020, post imposition of COVID-19 lockdown.

Meanwhile, stamp duty rates for affordable housing in other major states largely hover anywhere between 5-8 per cent. If the property registrations are done in the name of a woman, then states like Delhi, UP, Rajasthan, Punjab and Haryana offer relaxation in stamp duty.

(The above story first appeared on LatestLY on Aug 26, 2020 07:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).