The Maharashtra cabinet, on September 30, announced adjustments to the stamp duty structure, particularly affecting the registration of documents required for awarding work contracts, as well as for amalgamations, restructuring, and mergers. Under the new policy, stamp duty will be calculated based on the market value of fixed and movable assets involved in these contracts. Previously, these documents attracted a nominal fee of ₹500.
According to the government’s statement, this change will align fees with the actual market value, streamlining the registration process for corporate transactions. The revision reflects the state’s efforts to ensure that stamp duties on high-value transactions are proportionate to the market worth of the assets involved.
Increased Stamp Duty for Slum Rehabilitation Authority Scheme
The cabinet also introduced an increase in the minimum stamp duty for documents related to slum rehabilitation projects. The previous charge of ₹100 for registering these documents has now been raised to ₹500. This applies specifically to documents under the Slum Rehabilitation Authority (SRA) scheme, among others.
Additionally, the government has proposed a revision in stamp duty for Articles of Association of companies, increasing the charge from 0.2% to 0.3%, with the maximum limit being raised to ₹1 crore, from the earlier ₹50 lakh. This move is aimed at aligning stamp duties with contemporary market dynamics.
No Change in Stamp Duty for Homebuyers
The revisions will not affect homebuyers, with the stamp duty on property purchases remaining unchanged. In Mumbai, homebuyers continue to pay six percent of the property price in stamp duty, with women homebuyers receiving a one percent concession, bringing their rate to five percent. Registration charges also remain at one percent for properties valued up to ₹30 lakh, or ₹30,000 for properties above this threshold.
Experts have clarified that the stamp duty structure for homebuyers is city-specific and will not be impacted by these recent changes, preserving affordability for residential property transactions.
Approval for 256 Acres of Salt-Pan Land for Dharavi Redevelopment
A significant development in the Dharavi redevelopment project, the Maharashtra government has approved the acquisition of 255.9 acres of salt-pan land from the Central government on a lease basis. This land will be used to accommodate residents who are currently ineligible for housing under the Adani Group-led redevelopment initiative.
The government intends to use this land to develop rental, low-cost, and affordable housing as part of the rehabilitation component of the Dharavi project. This step is crucial in addressing the housing needs of thousands of residents who were not eligible for redeveloped homes within Dharavi itself.
Government Sanctions Rental Housing Scheme for Ineligible Slum Dwellers
In a parallel move, the Maharashtra cabinet has instructed authorities to expedite the survey of Dharavi’s slum dwellers to identify both eligible and ineligible residents for the housing schemes. Additionally, the government has approved the drafting of a rental housing scheme for those found ineligible for the main redevelopment program. This scheme will be integral to the Dharavi project, ensuring that no section of the slum’s population is left without housing solutions.
These decisions mark a pivotal moment in Maharashtra’s urban development, particularly with regard to Dharavi, one of the largest slum clusters in the world. The dual focus on revising property transaction taxes and progressing on the Dharavi redevelopment underscores the government’s commitment to both economic modernization and social welfare.
Summary of Key Changes:
- Revised Stamp Duty Rates: Market-based stamp duty for work contracts, mergers, and corporate restructuring.
- Increased Fees for SRA Projects: Stamp duty for slum rehabilitation documents raised from ₹100 to ₹500.
- Homebuyer Stamp Duty Unchanged: No revision for individual property buyers, maintaining the status quo on current rates.
- Dharavi Redevelopment: Approval of 256 acres of salt-pan land to house ineligible slum dwellers.
- Rental Housing Scheme: New housing plan for ineligible Dharavi residents as part of the broader redevelopment efforts.
These updates signify a strategic shift in Maharashtra’s policies aimed at optimizing revenue from high-value transactions while addressing critical housing needs in urban slums.