Mumbaikars will now have to shell out extra for their dream property. The Maharashtra Assembly passed by voice vote a bill to levy a one percent surcharge on stamp duty on sale, gift and rental transactions of properties, giving a setback to Mumbai real estate market.
The will was passed on Nov. 27. The bill will now go to the Council and the governor before it is signed into a law, TOI reported.
As per the provisions of the Mumbai Municipal Corporation Act (second amendment) bill, the move is aimed at creating sufficient corpus for such projects. The current stamp duty is 5 percent, which now will be pushed to 6 percent.
The additional surcharge will be levied on stamp duty on the instruments of sale, gift, usufructuary mortgage of immovable property in the Brihanmumbai Municipal Corporation (BMC) limits, where such vital important urban transport projects are being undertaken.
The said urban transport projects include expansion of Metro rail, construction of the Sewri-Nhava Sheva sea link, a Bus Rapid Transport System, etc. The increased stamp duty will ensure that sufficient funds will be at the disposal of a municipal corporation or an agency implementing a project.
The move comes as a setback to already suffering Mumbai real estate sector. Following the increase in stamp duties paid during the house purchase, the end cost of buying a house is also likely to rise.
What is the cut off date before the new charges will be applicable?