Stamp Duty in Mumbai

Stamp Duty and Property Registration Charges in Mumbai

Check Current Stamp Duty Rate in Mumbai

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Stamp Duty and Registration Charges in Mumbai

The stamp duty in Maharashtra was decreased in 2020 due to the weak situation of the Real Estate Industry. The Government of Maharashtra reduced the stamp duty rate from 5% to 2% in August last year for three months. In January, the stamp duty rate was increased just by 1%, making it 3%. The low stamp duty percentages boosted the Real Estate Industry as the sales of property increased.

 

The rate was restored to its earlier value of 5% in March 2021. The stamp duty rate in Mumbai 2021 for commercial property is 5% 

On the 8th of March,2021, the Government of Maharashtra made a notable exception for women regarding the decrease in stamp duty rate. Any female would be liable to pay only 4% on the property registered against her name. This rebate is only valid for female buyers and not for joint buyers. The stamp duty rate for joint buyers still stands at 5%. 

Is Maharashtra Stamp Act and Bombay Stamp Act same?

The Maharashtra Stamp Act, commonly known as the Bombay Stamp Act, was passed in 1958. Recent modifications to the Act include a reform of gift deed stamp duty, disciplinary provisions, the incorporation of e-payment of stamp duty, and an escalation in stamp duty under specific instrument terms. The Maharashtra Stamp Act says, all objects liable to stamp duty in Maharashtra must be registered before or at the time of execution, or on the following working day after the date of implementation, according to the Maharashtra Stamp Act. The gift deed can be stamped under three months of its arrival in India if it was completed outside of India. The government promised a 1% stamp duty rebate in March 2021 if a property is owned only in the name of a woman.

Stamp Duty and Registration Charges in Maharashtra

The stamp duty and registration charges in Maharashtra 2021 are outlined below in the given table. 

Name of the City

Stamp Duty  (September 1, 2020 - December 31, 2020)

Stamp Duty (January 1, 2021 - March 31, 2021)

Stamp Duty (As per April 1, 2021)

Registration Charges

Navi Mumbai

3%

4%

6%

  • Rs. 30,000 for properties valued more than Rs. 30 Lakhs

  • 1% of the property price for properties under Rs. 30 Lakh

Pune 

3%

4%

6%

  • Rs. 30,000 for properties valued more than Rs. 30 Lakhs

  • 1% of the property price for properties under Rs. 30 Lakh

Mumbai

2%

3%

5%

  • Rs. 30,000 for properties valued more than Rs. 30 Lakhs

  • 1% of the property price for properties under Rs. 30 Lakh

Thane

3%

4%

6%

  • Rs. 30,000 for properties valued more than Rs. 30 Lakhs

  • 1% of the property price for properties under Rs. 30 Lakh

Nagpur

3%

4%

6%

  • Rs. 30,000 for properties valued more than Rs. 30 Lakh

  • 1% of the property price for properties under Rs. 30 Lakh

Pimpri-Chinchwad

3%

4%

6%

  • Rs. 30,000 for properties valued more than Rs. 30 Lakh

  • 1% of the property price for properties under Rs. 30 Lakh

What are all Charges included in Stamp Duty in Maharashtra?

Here are the things which are included in stamp duty in Maharashtra.

 

  • A cess/transport surcharge/local body tax of 1% of the property value is levied in urban areas governed by the Municipal Corporation or Municipal Council.

  • The Zilla Parishad cess replaces the above cess/surcharge in rural areas administered by village panchayats.

  • In areas under the jurisdiction of the Nagpur Municipal Corporation and the Nagpur Improvement Trust, a 0.5% service charge is levied. 

What is the Stamp Duty for First Time Buyers?

Below is the table listing stamp duty rates for first-time buyers.

Name of the City

Stamp Duty Rates for Female

Stamp Duty Rates for Male

Mumbai

4%

5%

Pune

5%

6%

Thane

5%

6%

Pimpri-Chinchwad

5%

6%

Navi Mumbai

5%

6%

How Much Stamp Duty has been Reduced in Maharashtra?

Here is detailed information about reduced stamp duty in Maharashtra. 

 

  • For Mumbai residents (city and suburban districts), stamp duty has been reduced by 3% until 31st December, 2020, and by 2% until 31st March, 2021. 

  • Stamp duty has been reduced by 2% in Maharashtra for all other areas until 31st December, 2020, and by 1.5 % until 31st  March, 2021.

  • For all areas in Maharashtra, a 1% reduction in cess/surcharge/local body tax has been implemented until 31st December, 2020, and a 0.5 % reduction until 31st March, 2021.

  • The 1% metro cess in Mumbai and the 0.5%  surcharge in Nagpur, however, have not been reduced.

These rates were valid from 1st September to 31st December, 2020. From the 1st of January 2021 to the 31st of March 2021, the Stamp Duty payable changed to 3-4% of the property value.

After 31st March, 2021, stamp duty rates increased to 5-6%.

How does this Reduction Affect Buyers?

Stamp Duty, which stands for 5-6 % of the property price, is a large sum of money to pay upfront when buying a home. This decrease makes a significant effect in cities such as Pune and Mumbai. People will be able to save more money while purchasing residences.

For example, consider a property in Mumbai that costs Rs. 1 Crore. The stamp duty due was Rs. 5 Lakh until August 2020. (5% of Rs. 1 Crore). Until December 2020, the stamp duty on a property worth Rs. 1 Crore is Rs. 2 Lakh, and until March 2020, it is Rs. 3 Lakh. Savings of up to Rs. 3 Lakh are available through reduction.

How is the Stamp Duty Rate Calculated in Mumbai?

The stamp duty rate in Mumbai is charged on the property’s value which is mentioned in legal documents of the property signed by both buyer and seller. The calculation also depends on the Ready Reckoner Rate of the area in which the property is located. The Ready Reckoner Rate refers to the minimum rate under which the owner cannot sell property on a particular site. 

 

For Example

  • Ready Reckoner Rate for row houses in Andheri is Rs. 25000 sq./m 

  • The minimum value is Rs. 1000 sq./m.

  •  The row house in Andheri has to be Rs. 25,000,000/-. 

  • The stamp duty calculated would be 5% of Rs. 25,000,000 i.e. Rs. 1,250,000. 

Stamp Duty in Maharashtra on Conveyance Deed

Below is the table listing stamp duty in Maharashtra on Conveyance Deed.

Conveyance Deed

Stamp Duty Rate

Deed of Gift

  • Family persons - Rs. 200
  • Non-family persons - 3%

Power of Attorney

  • Property in municipal areas is eligible for a 5% discount
  • Property in gram panchayat areas receives a 3% discount

Deed of Lease

5%

Payment of Stamp Duty

Payment of Stamp duty has become easier and quicker as the Government of Maharashtra has recently added the option of e-payment in the Maharashtra Stamp Act. This amendment has made paying stamp duty charges and registration charges more convenient and simpler for people. The entire payment procedure is less hectic and time-consuming.

Online Payment of Stamp Duty

Here are the steps for paying stamp duty online:

 

  • Go to the official website of the  Department of Registration and Stamps of Maharashtra's Government 

  • If you have an account, enter the required details and log in to your ID. The non-registered users can pay without registration. 

  • After you choose the “Pay without Registration,” you will be redirected to a different page. On the next page, select “Citizen” and the transaction method.

  • Click on ‘Make Payment.’ You can then pay your stamp duty and registration charges as per your choice by entering the required details.

  • Select the payment type and save the receipt/challan for a future procedure. The challan will be required for further process.

How to get a Stamp Duty Refund in Maharashtra?

In Maharashtra, the IGR allows stamp duty refunds in the following situations:

 

  • The stamp paper contains errors in the writing and is deemed unfit for use.

  • The stamp paper is unsigned or has incomplete information.

  • Any of the parties or a court of law finds the transaction illegitimate.

  • One of the parties who is significant to the contract dies before signing the stamp paper.

  • The stamp value on the document is insufficient, but the registration is completed with stamp paper of the appropriate denomination,

  • The stamp paper is damaged or unusable; the transaction can still be recorded by using another stamp paper document.

Information to be filled Online for Stamp Duty Refund

Here is the information to be filled online for a stamp duty refund.

 

  • To obtain a Maharashtra stamp duty refund, you must first provide all of your personal information, bank account information, and the cause for the return.

  • You must put all information about the document in the document's particulars, such as whether it is performed or not, whether it is registered or not, and so on.

  • You must also include the document number, SRO information, and date.

  • Following that, enter stamp details such as the type- whether it is e-payment, the name of the stamp vendor along with his address, the name and details of the purchaser of the stamp, the value of the stamp, e-SBTR, or franking, and so on.

Do You Need to Pay Stamp Duty on Past Property Documents?

The collector can recall property papers under the Maharashtra Stamp Act to examine if the stamp duty paid is correct; however, this can only be done within ten years of the date of registration. Furthermore, the Bombay High Court recently declared that stamp duty on documents that were not properly stamped could not be recovered at a later sale. If the stamp duty is recovered within ten years, it must be computed using the prevailing market rate at the time of the transaction.

Stamp Duty in Maharashtra: Tax Savings

Stamp duty, cess/surcharge, and registration charges are all eligible for income tax deductions under Section 80C of the Income Tax Act. The total deduction under Section 80C, however, is limited to Rs. 1.5 Lakh.

Conclusion

You must always pay your stamp duty and other relevant charges at the time of registering your newly purchased property as It is your legal and moral obligation to do so. But, these charges can be quite huge, depending on the property value. But, you can cover these costs with a house loan. The good news is that you can get a housing loan from a Bajaj Markets. All you will have to do is satisfy the basic home loan eligibility criteria and ensure that all the home loan documents are at your disposal.

FAQs on Stamp Duty in Mumbai

  • ✔️What is the current stamp duty in Mumbai?

    The current stamp duty in Mumbai is 5% for males and 4% for females.

  • ✔️What is the rate of stamp duty on property in Maharashtra?

    It varies from place to place in the state, depending on the locality and city.