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Major decision: Maharashtra reduces stamp duty to boost real estate sector

Representational Image
The real estate market, which is adversely affected because of the COVID-19 pandemic, is all set to get a boost as the Maharashtra government has decided to temporarily reduce the stamp duty as a major policy decision.
Speaking about this major decision by the government, Gaurav Agarwala, Secretary, CREDAI, told Nation Next: Reduction in stamp duty is a welcome move and will provide a massive incentive to those who want to purchase their own property.
It is unlikely that the benefits available to buyer right now will be offered anytime soon in the future. Rationalized pricing, lowest home loan interest rates of 6.85% approx, an extension of credit linked subsidy scheme, developers doling out lucrative schemes and now lower stamp duty rates ? all these factors make it a best time for any buyer to own a property now.
Agarwala informed that CREDAI has been trying to pursue the state government for reduction in stamp duty ever since the lockdown first began. The move will benefit the customer and foster demand creation along with giving a motivation to the real estate sector. The move will also stimulate the housing demand and help in converting inquiries into the sales before March 31. Affordable and mid-segment properties, which are in maximum demand, will see the most traction from such this move.
Agarwala, who’s also the director of Sandeep Dwellers Private Limited, which deals in affordable housing under Pradham Mantri Awas Yojana, PMAY, added: For the home buyers, the interest on home loans is on an all-time low. PMAY subsidy up to Rs 2.67 lakh is being offered to eligible buyers (ending March 31 for for MIG ? Middle Income Group – buyers). These benefits along with reduced stamp duty could prove to be the right time to own a property. Agarwala also shared how exactly one can benefit under PMAY. For the uninitiated, here’s how PMAY works:
PRADHAN MANTRI AWAS YOJANA
The Central Government has successfully implemented the Credit Linked Subsidy Scheme? under PMAY, wherein a first time home buyer gets a subsidy up to Rs 2.67 lakh on taking a home loan. This subsidy gets credited in his loan account, thereby reducing his EMI/Loan tenure.
WHO ALL ARE ELIGIBLE TO GET SUBSIDY?
- Family income should be less than Rs 18 lakh per year
- Family should not own a house in their name
- Aadhaar card is mandatory
If all the three above conditions are fulfilled, then you can get PMAY Subsidy up to Rs 2,67,000.
| Family Income | Category | Subsidy Amount | Valid Till |
| Below 6 lakhs | Economically Weaker Section/Lower Income Group | 2,67,000 | March 31, 2022 |
| 6 to 12 lakh | Middle Income Group ? 1 | 2,35,000 | March 31, 2021 |
| 12 to 18 lakh | Middle Income Group – 2 | 2,30,000 | March 31, 2021 |
*Family includes husband, wife and minor children
– SOME IMPORTANT POINTS
- If you are staying in a house (Pakka Makaan), which is in the name of your father/mother, and you do not own a house, then you can get subsidy.
- If you have children who are above the age of 18 years and they do not have a house in their own name, then both your son and daughter can get a subsidy individually.
- If you have any brother or sister and they are living in a house owned by their father/mother, and they do not own a house, then they can also get a subsidy individually.
- If you are staying in a rented house, then you can get subsidy.
- If you own a Kachha House, Plot, Commercial Shop, Land, Godown etc. you can still get subsidy. You should not own a Pakka Makaan, rest everything is allowed.
IN ADDITION TO THESE SHORT TERM BENEFITS, THERE ARE SEVERAL DEDUCTIONS UNDER INCOME TAX ON BUYING A HOME
Sec 24D – The interest portion of the EMI paid for the year can be claimed as a deduction up to a maximum of Rs 2 lakh.
Sec 80C – The Principal portion of the EMI paid for the year is allowed as deduction up to a maximum of Rs.1.5 lakh.
Sec 80C – Besides claiming the deduction for principal and interest repayment, a deduction for stamp duty and registration charges can also be claimed u/s 80C but within the overall limit of Rs.1.5 lakhs.
Sec 80EE – Additional deduction is allowed to the home buyers for maximum up to Rs 50,000. To claim this deduction, the amount of loan taken should be Rs 35 lakhs or less and the value of the property does not exceed Rs 50 lakhs.
Sec 80EEA – The budget 2019 has introduced additional deduction for home buyers for maximum up to Rs 1,50,000, subject to the stamp value of the property does not exceed Rs 45 lakhs.
If the loan is taken jointly, then each of the loan holders can claim in their individual tax returns. So, loan taken jointly with your family can help you claim a larger tax benefit. You are advised to consult your financial advisor/CA, to understand all conditions for availing these benefits.
Other than the Income Tax deductions, buying a property gives non-volatile capital appreciation and regular monthly rental Income.
Business
Anvi, Arav, Shaunak, Anavti emerge as champions at District Chess Championship in Nagpur

Chess Association Nagpur had organised Nagpur District Under 9 and Under 17 Open as well as Girls Chess Championship Tournament in association with GH Raisoni Sports and Cultural Foundation and Kalpana Prakash Welfare foundation.
Under the Aegis of Maharashtra Chess Association held on Saturday, May 21 at Shraddha House, the prize distribution function was also held on the same day by Bhushan Shriwas, Secretary, Chess Association Nagpur. Earlier, the tournament was inaugurated by SS Soman (Working President CAN and Member MCA tournament Committee).

Tournament was executed by Chief Arbiter Pravin Thakare who was assisted by Deputy Arbiter Shiva Iyer, Prayas Ambade and Prathamesh Machave.
List of Selected players :
Under-9 Boys
1) Arav Dhoot
2) Chirag Lahoti
Under-9 Girls
1) Anvi Vinit Hirde
2) Chaudhari Amulyaa
Under-17 Boys
1) Shaunak Badole
2) Dishank Bajaj
Under-17 Girls
1) Avanti Junghare
2) Shraddha Bajaj
Business
CAMIT delegation meets Devendra Fadnavis, thanks him for support to tenants across Maharashtra

CAMIT delegation during the meeting with Leader of Opposition Devendra Fadnavis
A delegation of Chamber of Associations of Maharashtra Industry & Trade (CAMIT) led by Chairman Mohan Gurnani and President Dr Dipen Agrawal recently met Devendra Fandnavis, Leader of Opposition, Maharashtra Legislative Assembly, to express gratitude for firmly standing with galedharak/tenants of municipal corporations across the state.
Expressing gratitude on behalf of tenants from Maharashtra, Dr Agrawal said that in 2019 injustice was inadvertently done to leasee/tenants of respective municipal corporations across the state. CAMIT had strongly protested the draft rules in 2019. Thereafter, CAMIT has been actively engaging with government and administration at all levels to bring relief to the small and marginal traders from the unilateral exorbitant increase in rent.
Over a period of times, CAMIT team met MP Krupal Tumane, Fadnavis, Transport Minister Anil Parab, Environment Minister Aditya Thackeray, Urban Development Minister Eknath Shinde, Nana Padole (the then speaker of Maharashtra State Legislative Assembly) and others to impress upon them to intervene in the matter so as to do justice with all stake holders.
CAMIT’s patient follow-up without missing any opportunity to highlight the issue before men in power, has borne fruits. In the budget session the house concluded to withdraw the notification dated 13/09/2019 and constitute a committee to review and fix the rent afresh. It was also decided that corporations will collect rent as per old rates with an undertaking from tenants that they shall pay the difference as decided by the committee, added Dr Agrawal.
CAMIT delegation requested Fadnavis to ensure that the authorities immediately issue necessary written guidance/directions to all municipal corporations to put in abeyance coercive action against the tenants who have paid or are ready to pay the rent as per old rates. The delegation also requested him to impress upon government to include minimum five representatives of trade associations across the state in the proposed committee to be constituted to study, review and fix the lease rent.
Fadnavis said that opposition is committed to the cause of traders and any injustice meted out to small and marginal traders who are struggling for their survival will be dealt with very strongly. He also welcomed the announcement in the assembly session by Eknath Shinde in regards to withdrawal of 13th September 2019 GR and fixation of rent of corporation shops around 1-2% of the ready reckoner price.
During the meeting, Hemant Parekh, Rikab Mehta, Mitesh Modi, Sandeep Jain and Mahendra Mehta were also prominently present. CAMIT has also sent letter of gratitude to Chief Minister Uddhav Thackeray and Eknath Shinde for their timely intervention and resolution of the issue.
Business
CAMIT delegation meets Aditya Thackeray in Nagpur, raise problems faced by Maharashtra traders

CAMIT delegation during its meet with Maharashtra Cabinet Minister Aditya Thackeray
A delegation of Chamber of Associations of Maharashtra Industry & Trade (CAMIT) led by Dr Dipen Agrawal President along with MP Krupal Tumane met Maharashtra Cabinet Minister for Tourism Aditya Thackeray and Environment during his two-day maiden visit to Vidarbha in the presence of Nagpur Guardian Minister Dr Nitin Raut, MLA Ashish Jaiswal and MLC Dushyant Chaturvedi.
At the outset, Agrawal welcomed Aditya Thackeray with a floral bouquet and submitted memorandums highlighting the exorbitant hike in rent by corporations and their coercive action , harassment by local body tax department across the state under the garb of assessment and reopening of coaching classes in offline mode.
Wahab Parekh and Sanjay Nabira from NMC Market Federation said that unilateral steep increase in rent by municipal corporations for their bazar samiti properties is ranging between 100 to 1000 times and in some cases more than 1000 times. On failure of tenant to concede to this unilateral decision, authorities are taking coercive steps. This is adversely affecting the small and marginal traders already facing the heat of frequent lockdowns and restrictions due to covid pandemic.
Ashok Ahuja, past president of General Merchant Association, informed Thackeray that the then State Government had published draft regulations for transferring corporation property by lease or otherwise and renewal of lease. More than thousand objections and suggestions were submitted to UDD-2 from all over the state including from CAMIT with a request to give personal hearing in the matter. The administration without giving opportunity of hearing to anyone, notified the Maharashtra Municipal Corporations (Renewal of Lease or Transfer of Immovable Property) Rules, 2019 under notification dated 13/09/2019.
Dr Dipen Agrawal on behalf of galadharek across the state requested Aditya Thackeray to intervene and suspend the notification dated 13-09-2019 and suggested 1) in cases where only land is leased/licensed by Corporation the annual rent should be fixed at 1% of value as per ready reckoner; 2) in cases where shop/otta is leased/licensed by Corporation the annual rent be fixed at the rate of 2% of value of construction plus 1% of value of proportionate land as per ready reckoner; 3) 10% increase in lease rent/license fee every 3rd year; 4) Agreement should be valid for 30 years term; 5) the lease / license should be transferable and transfer fee to be charged equal to one month rent/fee for transfer within blood relation and equal to three months rent/fee for transfer outside blood relation and 6) the agreed new lease rent/license fee to be made applicable prospectively and not retrospectively.
Rajnikant Bondre President Association of Coaching Institute (ACI) and Sarang Upanglawar ICAD said that schools from class 1st to 12th and colleges have been permitted to reopen in offline mode from February 1, 2022 and at the same time coaching classes/institutes are kept close. The exam dates have been announced by education department. The guidance imparted our institutes in form of revision, doubt clearing and one to one interaction with faculty in this last month is crucial for the future for the students. This last month guidance can be effective only in offline mode. Further they highlighted that national level competitive exams like JEE, NEET, CA, CS etc., are also at doorsteps for which coaching classes is theonly option available for students. Hence, they requested to permit coaching classes to operate in off-line mode with immediate effect in the larger interest of future of our state, the students.
Aditya Thackeray and Dr Nitin Raut informed that the matter is expected to be discussed in next cabinet and suitable decision will be taken shortly. They further added that due relief to coaching classes will be extended.
Sanjay K Agrawal Vice President CAMIT and Ashok Sanghvi, President of General Merchant Association, on behalf of traders of Maharashtra expressed their gratitude towards SenaPramukh Uddhav Thackeray for extending his support to traders during their then agitation against Local Body Tax (LBT) and virtually abolishing LBT with effect from August 2015. Though practically LBT was abolished in 2015 but the ghost of LBT is hounding traders now and then, department in routine are passing ex-party (best judgement) orders raising inflated and fictitious tax demands and using them to justify continuance of LBT Department. Records from LBT Appellate Authority will evidence the correctness of our statement. They also informed that LBT Department in various Corporation indulged in issuing back dated assessment orders for previous financial years. The issue requires your attention, intervention and directions for closure of LBT Department in all Municipal Corporations with immediate effect to ensure ease of doing business in the state.
Aditya Thackeray admitted that he has received a mail from CAMIT on this issue and he is in knowing of the issue. He further said that similar representations have been received from other trade associations. He will discuss the issue with Nitin Raut, Energy Minister and KrupalTumane, Member of Parliament, and ensure that the issue is addressed.
Also present during the meeting were Prajakta Verma, Nagpur Divisional Commissioner, Nagpur collector Vimala R and NMC Commissioner Radhakishan B.
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