Upcoming Webinar:Join us for Sustainability 100+ Dialogues 2021-Maharashtra Roundtable& know how the state is progressing on climate action

Madhya Pradesh govt cuts stamp duty cess to 1% in urban areas until December 31

The stamp duty rate in urban areas has been reduced to 10.5 percent from 12.5 percent.

A week after the Maharashtra government decided to reduce stamp duty on housing units, the Madhya Pradesh government on September 7 also announced that it was reducing stamp duty cess by 2 percent in municipal areas to boost the stagnant real estate market hit by COVID-19.

The state government charges urban cess at the rate of 3 percent. That has now been reduced by 2 percent bringing it down to 1 percent, sources said.

The reduction is valid until December 31, sources said.

The government hopes the move will boost the real estate market.

Also Read: Maharashtra stamp duty cut: Mumbai real estate developers must now do their bit

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Real estate developers had been asking for a reduction in stamp duty following the lockdown to encourage homebuyers to purchase properties during the pandemic.

Madhya Pradesh stamp duty rate has been slashed by 2 percent. The prevailing stamp duty rate in urban areas has now been reduced to 10.5 percent. It was earlier 12.5 percent.

Also Read: Mumbai stamp duty collection down for August as homebuyers wait for stamp duty rate cut

Registration of properties includes two levies - stamp duty fees and registration fees. Currently, the stamp duty is 9.5 percent and the registration fee is 3 percent in the state that makes it 12.5 percent – the highest in the country.

After today’s temporary reduction, the stamp duty has been reduced by 2 percent, making it 7.5 percent and the registration fee continues to be 3 percent. The total is 10.5 percent.

This means that on a Rs 1 crore property, the stamp duty charged earlier was Rs 12.5 lakh. This would now get reduced to Rs 10.5 lakh resulting in a saving of Rs 2 lakh, said property experts.

“It is a welcome step for the real estate sector which has been impacted by the pandemic. It was our demand for a long time,” Wasik Hussain, president, CREDAI (MP) told Moneycontrol.

“We are pursuing with the government to reduce the registration fees by 2%. The total would then become 8.5%,” he told Moneycontrol.

There are a total of 5,000 under-construction projects in the state and approximately 7 lakh units.

The Maharashtra government on August 26 decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31, 2020. Stamp duty from January 1, 2021, until March 31, 2021, will be 3 percent, they said. The decision was taken at the state cabinet meeting on August 26.

Stamp duty rates in other major states largely hover anywhere between 5-8 percent, but they are lower in some states if property registration is executed in the name of a woman. Delhi, Uttar Pradesh, Rajasthan, Punjab, and Haryana offer relaxation in stamp duty for women buyers. The exemption on stamp duty ranges from 1-2 percent in different states.
Vandana Ramnani
first published: Sep 7, 2020 05:13 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark