Stamp duty on property deals in Mumbai now raised to 6 per cent
The state government on Tuesday issued a notification introducing an additional one per cent of stamp duty to be collected as surcharge on property transactions in Mumbai. The reasoning behind the move is the state needs funds to finance major infrastructure projects currently underway in the city, especially the Metro. The extra duty will be charged on all property deals from February 8.
The stamp duty in Mumbai will now increase to six per cent of the property transaction amount, which means real estate will become even dearer in the city.
The state expects to generate more than Rs 1,000 crore in this way. This revenue will be collected by the Stamps and Registration Department and passed on to the Mumbai Metropolitan Region Development Authority (MMRDA), via the Urban Development Department.
The MMRDA used to earlier sell lands in Mumbai and generate funds. With this land bank drying up, the state Assembly cleared an amendment in the Mumbai Municipal Corporation Act that authorises the Brihanmumbai Municipal Corporation (BMC) to levy an additional one per cent on stamp duty as surcharge.