REAL ESTATE UPDATE
11th December 2023
Issue No.16/23-24
MAHARASHTRA GOVERNMENT LAUNCHES THE STAMP DUTY AMNESTY SCHEME 2023
BACKGROUND:
In a significant move, the Government of Maharashtra has announced the introduction of the Maharashtra Stamp Duty Amnesty Scheme 2023 (“Amnesty Scheme”) which is aimed at providing relief to citizens by way of remitting or reducing stamp duty and the penalties levied on instruments executed during the specified period.
The initiative is a response to the Government’s assessment that such relief is essential in the public interest.
PHASES OF IMPLEMENTATION FOR RELIEF:
This scheme, which shall be effective in two phases, seeks to remit or reduce stamp duty and the penalties levied on instruments specified under the Maharashtra Stamp Act, 1958.
i) The first phase of the Amnesty Scheme-2023 will be in effect from 1st December, 2023, to 31st January, 2024.
ii) The second phase will be from 1st February, 2024 to 31st March, 2024.
KEY FEATURES AND PROVISIONS:
The following conditions must be fulfilled for the Amnesty Scheme to be applied to an individual:
1. Documents on stamp paper:
The Amnesty Scheme applies only to instruments executed on stamped paper exclusively sold by government-approved vendors or authorized agencies or competent authority authorised by the Chief Controlling Revenue Authority.
ii. Exclusion of plain paper instruments:
Instruments that have been executed on plain paper, that is without any stamp duty, are ineligible for benefits under the Amnesty Scheme.
iii. Application submission:
Applicants must submit an online application in the prescribed form, along with original instruments and self-attested copied of supporting documents, through an online system of the Inspector General of Registration and Controller of Stamps, Maharashtra State, Pune.
1v. Refunds:
No refunds will be granted for stamp duty or penalties already paid on the deficient portion before the Amnesty Scheme’s publication.
v. Remission applicability:
The party to the instrument, successor in title, or power of attorney holder may apply for remission or reduction of stamp duty and penalties.
vi. Timely payment requirement:
Applicants must pay the deficient portion of stamp duty and penalties within seven days of receiving the demand notice from the Collector of Stamps. If there is failure in doing the same, the applicant shall not be entitled to the benefits provided under this order.
vii. Submission of evidence:
Proper evidence as per the Annual Statement of Rates and Guidelines issued by the Chief Controlling Revenue Authority must be submitted for assessment purposes.
viii. Pending legal proceedings:
Instruments for which legal proceedings under specific sections such as 31(4), 32A, 33, 33A and 46 of the Maharashtra Stamp Act have been initiated are eligible, but applicants must withdraw pending cases and submit a declaration to that effect. Further they will have to make a fresh application in the form specified.
AMNESTY SCHEME PHASES AND REDUCTIONS
The schedule of reductions and waiver is categorized based on the amount of stamp duty payable and is further divided into two phases.
For instruments executed between 1st January, 1980, and 31st December, 2000, and those between 1st January, 2001, and 31st December, 2020, the scheme offers varying percentages of reduction in stamp duty and penalties, providing substantial relief to affected individuals.
INSTRUMENTS COVERED UNDER THE SCHEME
The Annexure to the Amnesty Scheme specifies the types of instruments covered under it, including those related to conveyance, agreements, leases, sale certificates, gifts, and various agreements involving immovable property etc.
This includes instruments related to the Maharashtra Housing and Area Development Authority (MHADA), the City and Industrial Development Corporation of Maharashtra Limited (CIDCO), and other relevant authorities and the Slum Rehabilitation Authority (SRA).
STANDARD OPERATING PROCEDURE TO BE ISSUED
To ensure effective implementation, the Government will issue a Standard Operating Procedure separately. This will guide the stakeholders involved in the execution and processing of applications under the Amnesty Scheme.
The Amnesty Scheme is expected to bring substantial relief to individuals affected by stamp duty and penalties, providing a window of opportunity for rectification and compliance. The Government’s proactive measures underscore its commitment to public welfare and economic facilitation.
Deputy secretary (stamps and registration) SS Bajaj in a recent interview has said that the scheme would help those who were earlier served notices but did not pay due to the huge amounts. He also stated that this move would hopefully prevent further litigation.
| Disclaimer: This newsletter is for general information only and not intended for any solicitation. Views expressed in this newsletter are as on date and not necessarily of V Law Partners (“VLaw”). While reasonable efforts have been taken to provide correct information, VLaw cannot and does not warrant or guarantee the accuracy of the information provided in the newsletter. Readers are advised not to rely solely on this information when making any decision.
Suggestions: If you do not wish to receive our newsletters or have any comments or suggestions for us, please write to us at – admin@vlawpartners.com |