1% Surcharge On Stamp Duty ; Affects Home Buyers In Mumbai

Mumbai: The state government has decide to put additional charges by 1% to the stamp duty while purchasing the home in Mumbai. Due to which, it has became difficult for customers to buy property in Mumbai.

It is more added on property sales to generate additional funds for the cities big ticket infrastructure projects. Developers and real estate experts said the extra financial burden on home buyers was unwarranted.

The state government has forwarded the bill to amend the Mumbai Municipal Corporation Act 2018 as Section 144F that will impose the additional stamp duty of the buying properties in greater Mumbai. They would be levied on sale, lease, gift and mortgage.

However, it is said that the additional revenue generated from the 1% stamp duty is likely to use in  urban transport projects, including Metro, monorail, bus rapid transport system, freeways and sealink, which entail investment of more than Rs 1.06 lakh crore.

Although,the real estaters have opposed the move of state government by saying it will slay the mood of the customers who are planning to buy homes in Mumbai. Also,it will hit the middle class families who dreamt of buying home in Mumbai. Their dream will left only as a dream.

The real estate sector in the past few years continues to be restless by slowdown due to decrease in sales and new launches. In addition, banks and financial institutions also have put restrictions on home loans and hiked interest rates.

However, things are gradually improving this year as builders are now decreasing rates as well as giving sops to woo homebuyers. Banks have also eased norms and brought down interest rates on home loans.