Extra 1% surcharge on buying home in Mumbai soon.

Extra 1% surcharge on buying home in Mumbai soon.

MUMBAI: In a move that could further hit the real estate market, BMC has proposed to levy a 1% surcharge on all property transactions and even in cases where a property is gifted.

The civic administration said it will yield additional revenue of Rs 3,000 crore if the surcharge is approved by the state government.

The buyer will have to shell out Rs 1 lakh on an apartment worth Rs 1 crore.This is over and above the 5% stamp duty (Rs 5 lakh on a Rs 1 crore flat) and Rs 30,000 for registration.

BMC has requested the state to amend the Maha rashtra Stamp Act and BMC Act to introduce the surcharge. As of now, the state collects stamp duty and registration charges; it collected Rs 20,000 crore across the state in 2016-17.

Property experts raised concerns about the new surcharge, stating it will dampen sentiments. “The market was already affected badly in the quarter post-demonetization,“ said sources…….Read more

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