Maharashtra Government Announces Stamp Duty Exemption for IT Projects

The Maharashtra Government has announced a stamp duty exemption for IT projects, a strategic move towards boosting the Information Technology (“IT”) sector. This was enacted through a Notification on February 1, 2024, under the provisions of Section 9 of the Maharashtra Stamp Act 1958. The exemption offers either full or partial waiver of stamp duty for eligible new and expansion diversification units within the IT, ITES, AVGC, Data centres, and Emerging Technology sectors. It will be effective from June 27, 2023 to June 26, 2028 (both days inclusive).

This initiative is expected to propel the growth of Maharashtra’s IT sector by covering various IT-related activities. Eligible IT/ITES units meeting specific criteria within defined zones are entitled to this stamp duty exemption. To avail of these benefits, one must obtain a Letter of Intent and No Objection Certificate from the Directorate of Industries, followed by an application to the Department of Industries for approval. Certain conditions, including the need for a valid Commencement Certificate or RERA Approval, must also be met.

This notification aims to boost the IT sector in Maharashtra, paving the way for the state to become the technology capital of India. By providing support to existing market players and creating a welcoming environment for new entrants, this initiative sets the stage for sustained growth in the state’s IT ecosystem.