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When purchasing property in Mumbai, you need to pay stamp duty and registration charges according to Section 3 of the Indian Stamp Act, 1899. The stamp duty fees will differ as per the locality of the property while the registration fees depend on the cost.

 

The stamp duty rates applicable in Mumbai for men is 6%, which includes 1% metro cess charges. However, it is 5% including 1% metro cess charges for women buyers. In terms of registration charges, a fee of ₹30,000 is levied for properties above ₹30 Lakhs.  You need to pay a fee of 1% of the property value for properties below ₹30 Lakhs.

 

The government introduced the 'Mudrank Shulakh Abhay Yojana' to help buyers settle stamp duty dues with ease. This initiative eased financial liability by enabling property owners to pay penalty fees through discounts. 

 

Note that the Government of Maharashtra has extended this scheme until June 30, 2024

How Does Reduction in the Stamp Duty Charges Affect Buyers

Here are the benefits you can enjoy with reduced stamp duty and penal charges:

  • The overall cost associated with purchasing the property reduces

  • Stamp duty reduction provides significant tax benefits to the borrowers of home loans

  • In the case the house is under co-ownership, each buyer is eligible to claim the fee according to their property share in the house

How is the Stamp Duty Calculated in Mumbai

Before you calculate the stamp duty charges, it is essential to know the property value and ready reckoner rates. Check out a few key points:

  • You need to pay the stamp duty based on the transaction value specified in the sale agreement

  • In Mumbai, properties cannot be bought or sold below the government-prescribed Ready Reckoner (RR) rates

  • You need to calculate the property value according to the current RR rates, and then compute the stamp duty accordingly

  • If the house is being registered at a value higher than the RR rate, you will need to pay a higher amount as the stamp duty

  • In case the property is being registered at a value less than the RR rates, the stamp duty will be calculated based on the ready reckoner rates

Stamp Duty on the Conveyance Deed

The stamp duty varies across gift, lease or mortgage deeds. Here is a table outlining the rates:

Name of the Deed

Stamp Duty

Lease Agreement

5%

Gift Sales Agreement

3%

Gift Sales Agreement for residential or agricultural property transferred to family members

₹200

Power of Attorney

  • 5% for property within the municipal limits

  • 3% for areas within the gram panchayat

Disclaimer: The above-mentioned rates are subject to change at the discretion of the state government.

Payment of Stamp Duty Charges

Here are the steps to pay the stamp duty in Mumbai online:

  1. Visit the official website of the Department of Registration and Stamps of Maharashtra's Government at https://gras.mahakosh.gov.in/igr/frmIndex.php

  2. If you have an account, log in by entering the necessary details; otherwise, proceed without registration

  3. Choose the 'Pay Without Registration' option, which will direct you to another page

  4. Select the 'Citizen' option, and choose the preferred payment method

  5. Proceed by clicking on ‘Make Payment’ and provide the required details

  6. Remember to save the receipt or challan for future reference

How to Get a Stamp Duty Refund in Maharashtra

There are certain instances where you are liable to be refunded for the stamp duty you have paid. Follow these steps:

  1. Go to the Stamp Duty Refund page at https://appl2igr.maharashtra.gov.in/refund/ and log into your account via your mobile number and OTP

  2. Create the token number for the refund and set a password

  3. Complete the necessary information, including personal bank account details and reason for refund

  4. Specify the type of payment made, the nearest Sub-Registrar Office (SRO), and stamp vendor

  5. Register all details and submit the token number to the respective SRO

 

You can get a refund in these circumstances:

  • If the stamp paper lacks complete information or necessary signatures

  • If there are errors in the written details and they are unsuitable for use

  • If a party whose signature is crucial passes away before signing the stamp paper

  • If any party or a court of law deems the transaction illegitimate

  • If one of the parties refuses to sign the stamp paper

  • If any party fails to agree with the outlined terms and conditions

  • If the stamp paper is damaged or unusable, but the transaction is registered using another stamp paper document

  • When the value of the stamp on the document is insufficient, but registration has been completed using a stamp paper of the correct denomination

Tax Benefits on Stamp Duty Charges in Maharashtra

Here are some exemptions you can get when filing your Income Tax Returns:

  • Expenses on the stamp duty and registration charges directly linked to the transfer are eligible for a tax deduction under Section 80C of the Income Tax Act, 1961

  • The maximum deduction limit allowed under this section is ₹1.5 Lakhs

  • Make sure to claim these tax benefits during the year when you make these payments

 

In the case of property transfer after a timeline of 5 years, you have to pay tax in the assessment year when you actually transferred it.

Frequently Asked Questions

What is the current stamp duty in Mumbai?

The current stamp duty in Mumbai is 6% for males and 5% 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.

Is there any concession on the stamp duty charges for women in Maharashtra?

Yes, women homebuyers benefit from a 1% concession on stamp duty charges in Maharashtra.

Is GST applicable on stamp duty payments?

No, the Goods and Services Tax (GST) is not applicable to stamp duty payments.

What is the difference between stamp duty and registration charges?

Stamp duty is a type of tax levied on lease and property sale agreements, while you need to pay registration charges for registering property with the government.

What is the stamp duty on past property documents?

Recent judgments by the Bombay High Court state that inadequately stamped past property documents cannot incur stamp duty charges at the time of the next sale. This decision benefits buyers of old properties where adequate stamp duty was not paid.

 

It helps ensure that present buyers are not burdened with additional costs related to past stamp duty issues.

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