• The state's exemption from raising stamp duties expires in March 2022

People who want to buy a house in Mumbai are going to have to pay more from April 2022. Because stamp duty on house registration will go up by 1 percent next fiscal year, the Maharashtra government is going to raise the charge. Following the end of the two-year Stamp Duty exemption by the state government in March-end, the stamp duty rate will increase by 1%, effective from 1st April 2022. Furthermore, the stamp duty on wanting to give someone a house or other property will soar to INR 1 lakh from INR 200 if the property is worth more than INR 1 crore. The first stamp duty rate of INR 200 will rise to 1 percent of the value of the property.

• What happened before

The Maharashtra government sent out a notice on February 8, 2019, that added an extra stamp duty in the form of a surcharge on instruments of sale, gift, and usufructuary mortgage for real estate that is in a municipal corporation area where urban transportation projects are being done. However, in March 2020, the government gave a two-year exemption to people who live in the Mumbai Metropolitan Region, Pune, Pimpri Chinchwad, and Nagpur Municipal Corporations. Starting in April 2020, they did not have to pay. Waiver: The waiver is now set to run out on March 31, 2022. People who transfer real estate as a gift to others will also have a big impact on the sale of the property.

• The effect of changes in Stamp Duty

A stamp fee of only 200 rupees applies to a residential flat given to a husband, wife, son, daughter, grandson, granddaughter, or the widow of a deceased son. Starting in April 2022, however, the identical transaction will be subject to a one-percent ad valorem stamp duty based on the apartment's market value. Maharashtra is now one of the most costly states to buy a home, due to a significant hike in stamp duty. This might also hurt developers, as the bulk of them sold residences with the promise of paying stamp duty on behalf of their consumers through programmes.

• What about Metro Cess

With the Maharashtra state government preparing to levy a Metro cess on April 1st this year, real estate prices in Pune and Mumbai are expected to surge even more considering the increase of 1% in stamp duty too. From April 1, an additional 1% metro cess will be charged on all property purchased in Mumbai, Pune, and Nagpur. It will be used to fund transportation infrastructure projects in the state. The 1% Metro cess is designed to boost revenue for Metro train services while also paying off the loans that financed the project.