Stamp Duty and Property Registration Charges in Mumbai

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%. 

The stamp duty and registration charges in Maharashtra 2023 are outlined below in the given table. 

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%.

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.

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. 

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

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.

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.

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, 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.

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.