What is stamp duty and registration charges on property?
Whenever any movable or immovable asset changes hands, the buyer has to pay a certain amount of tax to the state government, to get it stamped and registered in legal records, which is known as stamp duty and registration charges.The stamp duty charges in Maharashtra vary between 3% and 6%, depending on various factors, while the registration charges in Maharashtra are 1% of the total cost, for the properties priced below Rs 30 lakhs and capped at Rs 30,000 for properties priced above Rs 30 lakhs.
Stamp duty and registration charges in Maharashtra 2022
What is Maharashtra Stamp Act?
The Maharashtra Stamp Act was passed in 1958 and applies to all the instruments mentioned in Schedule 1, on which the stamp duty is payable to the state. It is also known as the Bombay Stamp Act 1958. The Act was amended recently and the amendments include a revision of gift deed stamp duty, inclusion of e-payment of stamp duty, revision of penalty clauses and increment of stamp duty under certain instrument clauses.
According to the Maharashtra Stamp Act, all instruments chargeable with stamp duty in Maharashtra and executed in Maharashtra, should be stamped before or at the time of execution, or on the next working day following the date of execution. However, if the deed including stamp duty on gift deed is executed out of the territory, it can be stamped within three months after it is first received in India.
The stamp papers must be in the name of one of the parties to the transaction and not in the name of the chartered accountant or lawyer of the parties. Moreover, the date of issue of the stamp paper must not be more than six months older than the date of the transaction.
Maharashtra stamp duty rates can be paid by way of adhesive or impressed stamps on the deed. In addition to this, the adhesive stamps used on the deed is cancelled at the time of execution, so that it is not available for reuse.
After announcing a stamp duty rate cut in August 2020, the Maharashtra government decided not to extend waiver on Stamp duty and registration charges in Maharashtra beyond March 31, 2021. The state has also kept the ready reckoner rates unchanged for the financial year 2021-22.
Reduction in stamp duty in Maharashtra between September 1, 2020 to December 31, 2020 and from January 1, 2021 to March 31, 2021, was a welcome move, especially reduction in stamp duty in Mumbai and stamp duty in Pune, where the property costs are already high.
Following this announcement on stamp duty and registration charges, Mumbai saw a significant spike in spite of the economic pressure caused by the second wave of the Coronavirus pandemic.
Explaining with an example, if cost of a property in Mumbai is Rs 1 crore, the stamp duty in Mumbai to be paid in the period from September-December 2020 was Rs 2 Lakh and from January to March 2021 was Rs 3 lakh, unlike the Rs 5 lakh which home buyers have to pay now as the stamp duty in Mumbai is presently 5%. Hence, there was a clear savings of Rs 3 lakh or 2 lakh for the home buyers.
The Maharashtra government, in its budget for 2021-22, also announced a concession of 1% over the prevailing stamp duty in Maharashtra on property transactions, if the transfer of house property or registration of sale deed, is done in the name of women.
Gift deed stamp duty in Maharashtra and other conveyance deed
|Conveyance deed||Stamp duty rate|
|Gift deed for residential/agricultural property passed on to family members||Rs 200|
|Power of attorney||5% for property located in municipal areas, 3% for property located in gram panchayat areas.|
According to Article 34 of the Maharashtra Stamp Act, which was amended in 2017, gift deed stamp duty is 3% of the property’s value. However, if the property in consideration is a residential or agricultural property and is gifted (without any payment) to family members, then, the gift deed stamp duty is Rs 200.
Stamp duty Maharashtra charges
|Cities||Stamp duty rates applicable (w.e.f. April 1, 2021)||Stamp duty rates applicable from September 1, 2020 till December 31, 2020||Stamp duty rates applicable from January 1, 2021 till March 31, 2021|
|Mumbai||5% (includes 1% metro cess)||2%||3%|
|Pune||6% (includes local body tax and transport surcharge)||3%||4%|
|Thane||6% (includes local body tax and transport surcharge)||3%||4%|
|Navi Mumbai||6% (includes local body tax and transport surcharge)||3%||4%|
|Pimpri-Chinchwad||6% (includes local body tax and transport surcharge)||3%||4%|
|Nagpur||6% (includes local body tax and transport surcharge)||3%||4%|
Stamp duty Maharashtra charges depend upon several criteria including whether the property is located in urban or rural areas, total cost of the transaction, etc. Earlier in April 2020, the Maharashtra government has reduced stamp duty on properties for the next two years, in the areas falling under the Mumbai Metropolitan Region Development Authority (MMRDA) and municipal corporations of Pune, Pimpri-Chinchwad and Nagpur.
What is stamp duty Maharashtra based on?
There are several factors on which the Maharashtra stamp duty rate including the stamp duty in Pune, stamp duty in Mumbai etc. are influenced which brings in some respite in the form of reduction.
- Age of the person: If the home buyer is a senior, there is a likelihood of him/her getting a reduction in stamp duty in Maharashtra.
- Gender: To encourage women home buyers, sometimes there are options where stamp duty and registration charges in Maharashtra 2021 for female are very attractive.
- Age of the property: If the property that a person is looking at investing is an old one, he may get a reduced stamp duty in Maharashtra. However, if the property is a new property, then, there are chances that the stamp duty in Maharashtra will be high.
- Type of property: A residential property commands lesser stamp duty in Pune and other parts of Maharashtra than a commercial property.