Shares of four real estate companies rose 5% to 7% after the Maharashtra Cabinet approved a proposal to reduce stamp duty on all land or home sale transactions.
Sunteck Realty (up 7.64%), Oberoi Realty (up 6.20%), Kolte-Patil Developers (up 5.95%), and Godrej Properties (up 5.09%) advanced.
The S&P BSE Realty index rose 2.89% while the S&P BSE Sensex advanced 0.61%.
The Maharashtra Cabinet approved a proposal on Wednesday (26 August) to reduce stamp duty by 3% on all land or home sale transactions executed and registered between 1 September and 31 December, this year. There will be a 2% reduction on stamp duty from 1 January to 31 March 2021.
The stamp duty rate is fixed by the state governments payable on the sale agreement. In Maharashtra, existing stamp duty charges are 5% in major cities like Mumbai, Pune, Nagpur and Nashik, and 6% in others.
A cut in stamp duty could boost sales of housing units during the festival season. Tax income from property transactions is reportedly the second highest revenue grosser in the state after Goods and Service Tax (GST).
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