AMENDMENT TO STAMP DUTY CONCESSION FOR WOMEN IN MAHARASHTRA

REAL ESTATE UPDATE

31st May 2023

Issue No. 07/23-24

AMENDMENT TO STAMP DUTY CONCESSION FOR WOMEN IN MAHARASHTRA

The Ministry of Revenue and Forest Department of the government of Maharashtra had passed an order dated 31st March, 2021 bearing no. Mudrank-2021/UOR.12/CR.1071M-1 (Policy) which modified the Article 21 of the Schedule I Clause (b) provision of Maharashtra Stamp Act (‘Act’). The order provided for concession to women for paying the stamp duty on documents or instrument of any type of residential unit by one percent reduction. (‘Order’). Further as clarified by the order, the benefit of reduction in stamp duty is to be applicable only for the documents or instruments of Conveyance or Agreement to Sell of any type of residential unit i.e., the flat or individual bungalow or row house or any independent house or any type of tenement where woman are the only purchasers of such type of residential unit.

However, the Order was subject to the following two conditions:

  1. That no refund will be granted where the stamp duty has already been paid by any of the parties to the instrument before this order was published.
  1. That any women purchasing any residential unit and availing the benefit of one percent reduction of stamp duty on the instrument, such woman will not be permitted to sell any such residential unit to subsequent male purchasers for a period of 15 years from the date of purchase. Further, on the breach of this condition, the women will be liable to pay the remitted one percent stamp duty as a penalty.

The Ministry of Revenue and Forest department has now issued an order dated 26th May 2023 amending the earlier Order dated 31st March 2021 and deleting the aforesaid condition 2 (‘Amended Order’).

The Amended Order aims at removing a needless burden on the female purchasers and to encourage more females to participate in the society.

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