AA
Agama Law Associates
ALA is a boutique commercial law practice offering end-to-end corporate-commercial legal solutions to Indian and foreign businesses. We offer a wide range of services tailored across sectors for private clients, startups and mature businesses. We have a cost-effective technology based model supported by a large network of associates. Commercial transactions and advisory is our forte, which includes contract management and standardization. Our disputes profile is advising and strategizing from a pre-dispute stage, and managing and driving the litigation across all courts and tribunals including the High Court, the NCLT and SAT
Vide Mumbai Municipal Corporation (Second Amendment) Act, 2018, the Maharashtra Government levied 1% (one percent) surcharge on instruments of sale, gift and usufructuary mortgage in addition…
India
Finance and Banking
To print this article, all you need is to be registered or login on Mondaq.com.
Agama Law Associates are most popular:
- within Media, Telecoms, IT, Entertainment, Employment and HR and Transport topic(s)
- with Senior Company Executives and HR
- in India
Vide
Mumbai Municipal Corporation (Second Amendment) Act, 2018, the
Maharashtra Government levied 1% (one percent) surcharge on
instruments of sale, gift and usufructuary mortgage in addition to
the prevailing stamp duty and registration charges. However, due to
the COVID-19 pandemic, effective from 1st April 2020,
the Maharashtra government waived the surcharge for a period of 2
(two) years
vide order dated 28th March, 2020.
Given that the duration of the waiver ends on 31st
March 2022, effective 1st April 2022 onwards, surcharge
at 1% (one percent) on the value of the property transactions in
case of an instrument of sale or gift, and on the amount secured by
the instrument in case of usufructuary mortgage, shall be levied in
the areas of Brihan Mumbai Municipal Corporation
(“Areas”).
Impact on sale, gift and usufructuary
mortgage
- Sale – This amendment hikes government levies in
addition to stamp duty applicable to sale of immovable properties
in the Areas; thereby increasing the cost of acquisition of such
immovable properties. - Gift – This amendment raises government levies in
addition to stamp duty applicable to gifts of immovable properties
in the Areas, thereby affecting the gifting of residential and
agricultural properties including inter-se transfers between
husband, wife, son, daughter, grand-son, grand-daughter, wife of
deceased son etc. which will substantially impact the usual, family
customary transactions pertaining to the gifts. - Usufructuary mortgage – This amendment hikes
government levies in addition to the stamp duty applicable on the
amount as secured and set forth in the instrument. This will impact
the transactions of borrowing and other financial transaction,
involving mortgage, due to increase in costs.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
