In a move that will bolster sales of real estate in the state, the Maharashtra government has announced that it would be extending the stamp duty rebate for women homebuyers. This decision has been passed in the State Budget 2023. The move has also been lauded as one that will give greater empowerment to women and encourage women home buyers.
The special concession for women in stamp duty covers the following:
- Women buyers can avail of 1% concession on stamp duty as compared to the usual stamp duty of 6%. Thus, if the stamp duty is 6%, women would need to pay only 5%.
- This concession in stamp duty is only applicable to residential property, not commercial or industrial property.
- The concession would also be applicable to women purchasing residential property individually, or with a co-owner, provided the co-owner is also a female.
- Further, the state government has removed the caveat to the stamp duty concession that women owners could not resell the property to any male for a period of 15 years. Earlier, if the woman sold to a male buyer within the 15-year lock-in time frame they would be required to not only pay the 1% stamp duty but also a penalty on it.
- It is interesting to note that while the stamp duty in Maharashtra is in the range of 6%, some districts, including Pune, Bhiwandi, Thane, Pimpri Chinchwad, Nagpur, Ahmednagar, Amravati, Nashik, and Navi Mumbai, are charging an additional 1% Local Body Tax (LBT).
While the real estate sector in Maharashtra is still recovering from the slowdown imposed by the pandemic, the move by the State Government to continue with the 1% concession for women on stamp duty will serve to increase demand and is expected to see more homebuyers, especially women, taking the initiative to buy homes. In India, home ownership continues to be a matter of pride and status and the pandemic has only served to underscore the importance of owning your own home rather than renting. The fact that Mumbai and other prominent cities in Maharashtra are offering projects that meet the requirements of varied budgets and aspirations of prospective homebuyers is an added plus and one that women home buyers should advantage of.