Prime Real Estate Relief: Haryana Waives Stamp Duty on PMAY Homes and Small Residential Plots

Image Source: Punjab Kesari

In a significant move aimed at boosting affordable housing and easing the burden on homebuyers, the Haryana government has announced a complete waiver of stamp duty on select residential properties. This decision, declared by Chief Minister Nayab Singh Saini on August 27, 2025, covers houses allotted under key housing schemes and small residential plots within defined size limits. The move is expected to spur real estate activity among the economically weaker sections and middle-income groups, creating a more inclusive housing market landscape.

Key Highlights of the Stamp Duty Waiver Announcement

Complete abolition of stamp duty on the registration of houses under the Pradhan Mantri Awas Yojana (PMAY), Mukhyamantri Shahri Awas Yojana, and Mukhyamantri Gramin Awas Yojana.
Waiver extends to residential plots up to 50 square yards in urban areas and up to 100 square yards in rural areas under these schemes.
Government maintains that no new taxes on property registration have been introduced alongside this waiver.
The announcement comes amid ongoing discussions about collector rates and stamp duty changes, with the government refuting opposition claims of excessive rate hikes.
Since 2008, Haryana has had a stamp duty rate of 7%, including a 2% development fee for men and a concessional 5% for women, which remains unchanged for eligible properties under this new waiver .

Detailed Overview of the Waiver and Context

Amplifying Affordable Housing Support

The Haryana government’s decision focuses on two major housing initiatives—the central government's PMAY and the state government’s urban and rural housing schemes. By eliminating stamp duty on houses granted under these schemes, the state significantly lowers the transaction cost for homebuyers. This is particularly beneficial for first-time homeowners and lower-income groups seeking affordable housing options through PMAY and related schemes.

Scope of Residential Plots Included

In addition to the houses under these schemes, stamp duty is also waived on small residential plots up to 50 sq yards in urban areas and 100 sq yards in rural areas. This caters to smaller landholdings, potentially encouraging more people to enter the residential property market without the deterrent of added stamp duty costs. The distinction between urban and rural size limits aligns with typical plot sizes distributed in these areas .

Clarification on Collector Rates and Opposition Claims

The announcement came amid a heated assembly debate where the opposition raised concerns over hikes in collector rates—the minimum government-set property valuation used in registration and taxation. In response, Chief Minister Saini clarified these increases are modest compared to those during the previous government, citing data showing a 25.11% rise from 2004-2014 versus only a 9.69% rise from 2014-2025 under the current administration. The government also stressed that no additional registration taxes beyond existing rates have been introduced, aiming to dispel misinformation and reassure homebuyers .

Historic and Current Stamp Duty Framework

Since 2008, Haryana has adhered to a stamp duty rate of 7% on property transactions, plus a development fee, with a concessional rate of 5% for female buyers to promote women’s property ownership. These rates remain applicable outside the scope of this new waiver and are intended to balance revenue needs with real estate market stability. The waiver on PMAY and small plots is a targeted relief to boost affordable housing, not a blanket cut across all property transactions .

Anticipated Impact on Real Estate Sector and Buyers

The waiver is expected to stimulate demand in the affordable housing segment by reducing upfront costs. It may particularly help those aiming for properties under government housing schemes or small plots who often face financial hurdles due to additional transaction costs like stamp duty. This aligns with the state's broader goals of enhancing housing accessibility and formalizing property transactions.

Simultaneous to this, the government has moderated collector rate hikes elsewhere and has resisted increasing circle rates recently, which normally push up property prices and registration costs. This reflects a balanced approach to encourage real estate sector growth without overburdening buyers .

In Summary: What Buyers Need to Know

Stamp duty is waived fully on PMAY and associated state housing scheme homes.
The waiver also applies to small residential plots (up to 50 sq yards urban, 100 sq yards rural).
Standard stamp duty rates (7% + development fee) remain for other properties.
Oppositional fears about sharp property tax hikes are countered by government data showing modest rate increases.
This policy aims to increase affordable housing uptake and support first-time buyers.

This announcement by the Haryana government marks a pivotal step in making housing more accessible and affordable, especially for lower-income groups benefiting from government housing schemes. Buyers and stakeholders in the property market should view this as a positive development that will ease financial entry barriers while fostering transparent and equitable real estate growth.

Source: IANS via The Hawk, Babushahi, and official assembly statements