Now, Pay Just 1k as Stamp Duty in Self-redevpt Projects
Applies Only To Existing Members, Not New Buyers:
Pune: Existing flat owners in self-redevelopment projects will no longer be required to pay the present stamp duty rate, which ranges between 5-7% of the total agreement value of the property, but would instead simply be need to pay Rs 1,000.
In order to promote self-redevelopment initiatives across Maharashtra, the state government is- suing a government decision in this respect on Friday. The GR, however, made it clear that stamp duty will be charged at the going rate to buyers of units in self-redeveloped projects who acquire them off the open market.
Representatives of the State Housing Federation claimed that the decision would unquestionably help 30-year-old housing societies pursuing self-redevelopment. Previously, apartment owners in these projects had to pay double the stamp duty.
“Flat owners in such projects were made to pay around 5-7% of the market value depending on the city and district as stamp duty, which has now been reduced to just Rs 1,000,” said Advocate Shree-prasad Parab, director of the state housing federation.In order to provide cheap housing in cities like Mumbai, Thane, and Pune, self-redevelopment of the ancient societies is urgently needed, he noted.Suhas Patwardhan, vice-president of the state housing federation, deemed it to be a wise decision. “A single-window method to approve such ideas was requested in the 2019 GR on self-redevelopment. Along with the lower stamp duty, this should also be in place, he added, noting that there is currently no information on such initiatives in the state.
Devendra Fadnavis, the state’s deputy chief minister, had ordered the state’s administration to expedite the implementation of the self-redevelopment strategy, which the cabinet had approved in 2019. The stamp fee for such projects must be cut to Rs 100, according to consumer advocacy group Watchdog Foundation. If the stamp tax is decreased to Rs 100, many projects may choose for self-redevelopment, according to foundation advocate Godfrey Pimenta.
THE LATEST GOVERNMENT RESOLUTION:
- Rs1,000 stamp duty should be paid before providing allotment letter or agreement of allotment to the existing members of a society going in self-redevelopment.
- In such cases, the share certificate or a certificate from the secretary or chair- man certifying the member to be an existing member of the society shall be attached.
- For saleable flats, the stamp duty will be levied as per the provisions of the Maharashtra Stamp Act on the agreement value or market rate of the particular area.
- For the existing members purchasing extra area from the society other than the area allotted to each member, the stamp duty will be levied as per the provisions of the Maharashtra Stamp Act on the agreement value or market rate of the said extra area.
SELF-REDEVELOPMENT BENEFITS
- Society members get extra space as compared to builder- led redevelopment.
- Additional flats created in the new building can be purchased by the existing members on cost basis or can be sold to people outside of the society.
- All profits from the saleable component will go in society funds.
- The entire control will be in the hand of the society members.
- Minimal risk as compared to builder-led redevelopment.
QUICK RECAP
- In the GR issued in September 2019, several concessions and incentives were offered to housing societies opting for self-restoration.
- However, only cooperative housing societies registered under the Maharashtra Cooperative Societies Act, 1960 and constructed before 30 years are eligible to avail the benefits.