Real estate investors are relieved with the recent changes made by the Department of Stamps and Registration. From now on, people moving in redeveloped flats are not liable to pay stamp duty. According to the real estate analysts from Arun Dev Builders, this move will boost the demographics of realty buyers. In a circular issued by the Inspector General of Registration and Controller of Stamps, it is mentioned that redeveloped flat owners will be able to save more than Rs one lakh by not paying the stamp duty.
Experts from Arun Dev Builders calculated the savings to be around Rs 1.5 lakh for a two-BHK flat in the suburbs. Buyers often pay for the stamp duty in the first agreement and it can sometimes bind the developers to pay for the same. After a developer completes the project, it is transferred to the actual residents. Another multilevel contract has to be signed by the builder, the society, and the residents. The department charges stamp duty yet again. This hurts both of the buyers and developers since a large number of redevelopment projects imposed more than once.
According to experts from Arun Dev Builders, this mismanagement is the main reason why this was abolished. The national Real Estate Development Council raised the issue. If the stamp duty has already been paid on the construction cost, then why apply it again on the redevelopment agreement? A stamp duty is also levied on the Permanent Alternate Accommodation Agreement. It sums up to a heavy amount that buyers have to waste every time a redevelopment drive takes place.
The circular also establishes stamp duty on new homes under sector 4 of the Maharashtra Stamp Act. The stamp cost will vary between Rs 100 and Rs 1,000. Real estate analysts in Arun Dev Builders predict Goregaon, Ghatkopar, Chembur, Borivali, and Andheri to be affected by this move.