Real Estate Newsletter – Stamp Duty Concession for Women Property Purchasers in Maharashtra

A. Background

The Government of Maharashtra has introduced a significant fiscal incentive to promote property ownership among women by reducing stamp duty on residential property transactions where women are the sole purchasers. This order, effective from 1st April 2021, represents a policy initiative aimed at empowering women economically and encouraging their independent ownership of immovable property.

B. Legal Framework

1. Statutory Basis

The order has been issued in exercise of powers conferred by Section 9(a) of the Maharashtra Stamp Act, 1958. Section 9(a) empowers the State Government to reduce or remit stamp duty on any instrument or class of instruments when satisfied that it is necessary to do so in the public interest.

2. Modification of Stamp Duty Schedule

The order specifically modifies the stamp duty rates prescribed under Article 25(b) of Schedule-I appended to the Maharashtra Stamp Act, 1958. Article 25(b) deals with stamp duty on instruments of Conveyance, which includes any instrument by which property is transferred inter vivos and which is not otherwise specifically provided for in Schedule-I.

C. Scope of the Concession

Quantum of Benefit

The order grants a reduction of One per cent (1%) in the stamp duty otherwise chargeable on eligible instruments. This represents a substantial saving for women purchasers, particularly in high-value property transactions.

D. Eligible Instruments

The concession applies to the following types of documents or instruments:

• Conveyance: Instruments by which ownership of residential property is transferred from seller to purchaser
• Agreement to Sell: Executory contracts for the future sale of residential units

E. Type of Properties Covered

The benefit is available for purchase of any type of residential unit, including:

• Flats or apartments
• Individual bungalows
• Row houses
• Independent houses
• Any type of tenement for residential purposes

F. Parties to the Transaction

The concession applies to instruments executed between:

• Purchaser Side: Women purchaser(s) who must be the sole purchaser(s)
• Seller Side: Any seller or other executant (male or female) of the document or instrument

G. Critical Eligibility Criterion

Woman as Sole Purchaser(s)

The order explicitly clarifies through its Explanation clause that the benefit of stamp duty reduction is applicable only where Woman/Women are the Only Purchaser(s) of the residential unit. This means:

• ✓ A single woman purchasing property independently qualifies
• ✓ Multiple women purchasing property jointly as co-purchasers qualify
• ✗ A woman purchasing property jointly with any male co-purchaser does NOT qualify
• ✗ Mixed gender co-ownership disqualifies the transaction from this benefit

H. Conditions and Restrictions

Condition 1: No Retrospective Application or Refund

Non-Refundable Nature: No refund shall be granted where the stamp duty has already been paid by any of the parties to the instrument prior to the date of publication of this Order in the Maharashtra Government Gazette. This condition ensures that the benefit is prospective only and does not create a financial burden on the exchequer through retrospective refund claims.

Practical Implication: Only transactions where stamp duty is paid on or after April 1, 2021 are eligible. Parties who registered documents or paid stamp duty before this date cannot claim refund of the 1% difference.

Condition 2: Fifteen-Year Alienation Restriction – DELETED

Important Amendment: The fifteen-year alienation restriction that was previously imposed under Condition 2 of the original Government Order dated March 31, 2021 has been deleted vide Government Order No. Mudrank-2021/U.O.R.No.12/C.R.107/M-1(Policy) dated May 26, 2023.

Previous Restriction (Now Deleted): The original order had imposed a restriction whereby any women purchaser(s) who availed the benefit of remission in stamp duty were prohibited from selling such residential unit to any subsequent Male Purchaser(s) within the period of 15 years from the date of purchase.

Current Position: This restriction has been completely removed. Women purchaser(s) who avail the benefit of the 1% stamp duty reduction are now free to sell the property to any purchaser (male or female) at any time without any time-bound restrictions or liability to pay back the remitted stamp duty.

I. Conclusion

The Government of Maharashtra’s order dated March 31, 2021 as amended by the Order dated May 26, 2023 represents a progressive measure to encourage women’s property ownership through fiscal incentives.

This amendment significantly improves the attractiveness of the scheme by removing the previous constraint on transferability. Women purchasers can now enjoy the immediate financial benefit of reduced stamp duty without being concerned about long-term restrictions on their ability to alienate the property.