Madhya Pradesh reduces stamp duty to 1% on property transactions

NEW DELHI: Madhya Pradesh has become the second state to reduce the stamp duty on property registration after Maharashtra.

Chief Minister Shivraj Singh Chouhan on Monday said that move is aimed to boost the real estate sector and more such initiatives will be announced in coming days.

“Economic activity had stopped due to the lockdown. Real estate sector was also severely impacted with financial capability of individuals got restricted,” Chouhan said.


The stamp duty on sale and purchase in urban area has been reduced from 3% to 1% till December 1.

“We want to restart the economy and we want the real estate sector to do well. We have reduced the duty by 2% and I am confident this will increase the number of transactions in the sector,” he added.

Real estate developers have been demanding reduction in stamp duty on the line of
?government of Maharashtra, which has reduced the stamp duty on property registrations to 2% for transactions between September 1 and December 31 from current 5%.

The stamp duty will be 3% for agreements to be registered between January 1 and March end in Maharashtra.

“Real estate is one of the biggest job creator industry and reduction in stamp duty will increase the sales and creation of more job,” Uddhav Poddar, MD of Rajasthan based Bhumika Group had said.