All about Maharashtra: stamp duty and registration charges
Anyone who has previously bought or opted to rent a property will be well aware of the process, and the extra costs included, like stamp duty and the registration fee. The rates vary depending on the state and district, it can range from 2% to 5 %, but the registration fee largely remains the same at 1000 – 1200 Rs.
Here, we will take a closer look at the varying stamp duty rates in the state of Maharashtra. But first, let’s start at the beginning with the Maharashtra Stamp Act. The Maharashtra Stamp Act establishes assets and instruments are subject to stamp duty payment to the state government. In addition, the Act specifies the amount of duty that must be paid to the government.
The state administration has opted not to prolong the stamp duty waiver on property registrations beyond March 31, 2021 and has maintained the Ready Reckoner Rates intact for the financial year 2021-22 after announcing a substantial stamp duty rate drop in August 2020.
Last year, the floods in hand with COVID caused a lot of damage to the economy and the job sector. Understandably, people started to spend less and save more, which caused a steady decline of business in the real estate market. To prevent any long-term damage, the Maharashtra government decided to provide a bit of relief by cutting stamp duty in certain areas. This move worked really well; it even started an upward trend, breathing life back into the real estate market.
The stamp duty charged on property purchases was cut in two slabs. In Pune. Nagpur, Pimpri-Chinchwad, Navi Mumbai, and Thane were lowered to 3%, and in Mumbai, it was 2% from September 1 to December 31, 2020. As it proved fruitful, the rates were adjusted again to 3%(Mumbai) and 4% in other areas.
What does the maharashtra stamp act entail?
The Maharashtra Stamp Act, enacted in 1958, applies to all documents listed in Schedule 1 for which the state collects stamp duty. The Act was recently updated, with revisions to stamp duty on gift deeds, the addition of e-payment of stamp duty, the modification of penalty provisions, and the increase of stamp tax under certain instrument sections.
Stamp duty Rates In Maharashtra
Property stamp tax rates in Maharashtra are determined by a number of factors. This covers things like whether the property is in an urban or rural setting, the entire cost of the deal, and so on. In April 2020, the Maharashtra government decreased stamp duty on properties in the Mumbai Metropolitan Region Development Authority (MMRDA) and municipal corporations of Pune, Pimpri-Chinchwad, and Nagpur for the next two years. This means that the stamp duty on properties in Mumbai, Pune, and Nagpur was set at 5% (4 percent stamp duty + 1% metro cess).
| 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% |
| Navi Mumbai | 6% (includes local body tax and transport surcharge) | 3% | 4% |
| Thane | 6% (includes local body tax and transport surcharge) | 3% | 4% |
| Pune | 6% (includes local body tax and transport surcharge) | 3% | 4% |
| Nagpur | 6% (includes local body tax and transport surcharge) | 3% | 4% |
| Pimpri- Chinchwad | 6% (includes local body tax and transport surcharge) | 3% | 4% |
For houses priced below Rs 30 lakhs, the registration fee is 1% of the total cost, with a ceiling of Rs 30,000 for properties priced above Rs 30 lakhs.
Stamp duty is computed using ready reckoner rates and the value of the property stated in the buyer-seller agreement. The stamp duty on real estate in Maharashtra varies depending on the area. For example, stamp duty on a property located inside the municipal limits of Mumbai’s metropolitan areas will be 5% of the market value, whereas stamp duty on a property located within the borders of any gram panchayat will be 3% of the market value.
Stamp Duty in various parts of Mumbai
Stamp duty in Mumbai varies depending on the location of the property and the type of deed. After March 2021, the stamp duty on conveyances/sale deeds will be as follows:
Areas in Mumbai
| Areas in Mumbai | Stamp duty in Mumbai |
| Within the municipal limits of any urban area | 5% of the market value |
| Within the limits of any municipal council/Panchayat/containment of any area within MMRDA | 4% of the market value |
| Within the limits of any gram Panchayat | 3% of the market value |
When the stamp duty rates returned to normal after April 21, the real estate market went into a stalemate. The number of property registrations was halved, be it for rent or new housing; the market will eventually kick back as things return to normal.
Things to keep in mind
All instruments chargeable with duty and executed in Maharashtra must be stamped before or at the time of execution or on the next working day following the date of execution, according to the Maharashtra Stamp Act. If the deed is completed outside of the country, it can be stamped within three months of its arrival in India.
The stamp documents must be in the name of one of the transaction’s parties, not in the name of the parties’ chartered accountant or lawyer. Furthermore, the stamp paper’s issuance date must be no more than six months prior to the transaction date. Stamp duty can be paid on a deed with either sticky or impressed stamps. Furthermore, the adhesive stamps used on the deed are revoked at the time of execution, making them non-reusable.
In the case of rent agreements, if the lease period is under 11 months, legal registration to local authorities is not mandatory but is advised for handling future disputes. If it’s your first time hearing any of this, consult a real estate agent, you can ask them for help.
Stamp duty and the registration fee are generally paid by the tenant in India, so don’t expect the landlord to do anything but sign the agreement.
Stamp Duty: online payment methods
The Maharashtra Stamp Act has been changed to allow stamp duty on documents executed in the state to be paid online. Follow these steps to get an e-stamp on your document.
● If you haven’t registered with the Maharashtra Stamp Duty Payment Portal yet, click “Pay Without Registration.” Fill in the login information if you are a registered user.
● If you choose the ‘Pay Without Registration’ option, you will be taken to a new screen where you must pick ‘Citizen’ and the sort of transaction you want to make.
● Select ‘Make Payment to Register Your Document’ from the drop-down menu. You can now pay the stamp duty and registration fees combined, or just the stamp duty, or just the registration fees.
● Fill in the required information, such as the district, sub-office, registrar’s payment information, party information, property information, and property valuation information.
● Select a payment method and print the challan, which must be produced at the time of the deed’s execution.
Stamp Duty offers in Maharashtra
A number of companies have launched a plethora of fresh incentives and discounts to promote sales over the festive season of Gudi Padwa and Akshaya Tritiya. A reduction in stamp duty and registration fees is also included. The builders will absorb up to 100% of the stamp duty component under this deal. This move is likely to entice purchasers who are eager to invest in real estate to return to the market. Earlier this year, Maharashtra’s National Real Estate Development Council (NAREDCO) announced that they would absorb the 3% stamp tax on property purchases and provide a rebate to home buyers until December 31, 2020.
The Bombay High Court recently ordered the Maharashtra government to refund extra stamp duty within four weeks of receiving the application, failing which they will be required to pay interest at the rate of 12% per year.
It is always better to check for the stamp duty rates based on the property location in Maharashtra.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
