Maharashtra govt extends stamp duty amnesty scheme till June 30

In a move to increase revenue generation, the Maharashtra government has decided to extend its stamp duty amnesty scheme for the third time until June 30, 2024. Named the Mudrank Shulakh Abhay Yojana, the scheme was introduced in December 2023 to encourage homebuyers to settle outstanding stamp duty dues.

Under the scheme, the state government will exempt the entire stamp duty fee and penalty imposed on property documents registered or not registered between January 1, 1980, and December 31, 2020. This includes properties under Mhada, Cidco or even the SRA.

According to the Inspector-General of Revenue, Maharashtra, a full waiver is granted for all properties with stamp duty and penalty amount up to Rs 1 lakh. For all properties with stamp duty and penalty above Rs 1 lakh, a 50% waiver on stamp duty and a 100% waiver on penalty is granted.

The scheme was launched in a phased manner: first from December 1, 2023, to January 2024, and second from February 1, 2024, to March 31, 2024.

For the uninitiated, stamp duty is a tax homebuyers have to pay to the state government at the time of property registration. Failure to do so attracts additional penalties. In Maharashtra, for instance, a property owner has to pay a penalty on the deficit at 2% per month. This money may total to more than 400% of the stamp duty.

“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,” it said in an order.

“By prolonging the scheme, the government has demonstrated its responsiveness ensuring continued momentum in the housing market,” said Prashant Sharma, president, Naredco, Maharashtra.

According to Sharma, 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.