Stamp Duty Benefit on Resale of Properties Extended to 3 Years/ SOP on Stamp Duty/Stamp Duty Relief

SOP on Stamp Duty/Stamp Duty Relief

Let first understand what Stamp Duty is – Every Person has to pay Stamp Duty and Registration charges while registering Property to the State Government as the constitution has given the right to collect Stamp Duty to the State Government, now the stamp duty rates vary according to the region.

For eg if one wants to register his property in Thane locality then he has to pay Stamp Duty at the rate of 6% excluding Registration charges which comes at 1% of value (maximum 30,000).

So if you register any Real Estate Flat and if you want to sale in future, and in turn wants to buy another property does that mean you have to pay Stamp Duty again, then answer is YES, so to encourage Real Estate sector, State Govt allows to take benefit of Stamp Duty paid earlier while registering resale property within one year.

This one year period was not sufficient and it did not make a lot of difference in the resale market, as Property involves high value, and in our country buying property is a major task, involving loan financing to arranging initial funds.

In the 2022 Budget, the State Government changes this period to 3 years to encourage the Resale Real Estate market which is a big market and also brings a lot of exchequer to the State Government.

Explaining how it works, “Suppose a buyer purchases an apartment for Rs 10,000 a square foot in 2022. In 2025, when the investor sells it for Rs 12,000 a sq ft, the stamp duty will be payable only on the difference of Rs 2,000.”

From above one can understand how SOP on Stamp Duty will work onwards and how one can take benefit from it while selling his property. One should also plan to take advantage of this SOP, as before many Investors were hesitant to register the property to save their cost as one year period was less, but if one can plan and utilise this SOP, then it’s not difficult to maximise return on selling of Property.

Note :Please take proper legal advice before applying SOP for Stamp Duty. View expressed above are taken from Maharashtra State Budget.

Author Bio:
Name: CA KARAN SINGH
Qualification: CA in Practice
Location: Thane
Contact: 8087397644/8779526602

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