stamp duty and registration charges

Know Stamp Duty and Registration Charges on Immovable Property

Business News

To sell or buy any immoveable or moveable property in Maharashtra, individuals must pay certain stamp duty charges to the Government. The Maharashtra stamp duty rates are mentioned in the Maharashtra Stamp Act, which specifies rates for assets and instruments. Due to COVID-19, these rates are reduced to 2-3% of property value to boost homeownership.

Charges included in Maharashtra stamp duty rates

In areas under the jurisdiction of Municipal Council or Municipal Corporation, there is transport surcharge/cess/local body charge payable. This amount is 1% of the value of the property and is primarily used to fund infrastructure projects related to transportation. 

Additionally, in areas that are beyond the jurisdiction of Municipal Council/Municipal Corporation, there is Zilla Parishad cess where 1% of the value of the property in concern is considered.

There is an additional surcharge of 0.5% over 1% surcharge/cess payable for areas under Nagpur Improvement Trust and Nagpur Municipal Corporation. 

Stamp duty in Maharashtra 

For properties in Pune, Mumbai and Nagpur, the Maharashtra stamp duty rate is 6%, including 5% stamp duty and 1% local body tax. This rate results from a decision taken by the government to lower the stamp duty rate on properties for 2 years. Besides this, properties valued less than Rs.30 lakh, registration charges are 1% of the total value, and the properties valued more than Rs.30 lakh, it is Rs.30,000.   

Factors affecting Maharashtra stamp duty charges 

The stamp duty and registration charges in Maharashtra 2020, including Pune, Mumbai and other places, are based on several pointers, including:

    1. Age: For senior citizens, the government is likely to reduce the stamp duty rate. 
    2. Property age: During investigation, if the property is considerably old, an individual is more likely to get a stamp duty reduction. Whereas for new properties, the rate will be on the higher side. 
    3. Gender: To encourage women homeownership, the registration charges and stamp duty rates are comparatively low.
    4. Property type: In Maharashtra, residential property fetches less stamp duty than commercial one. 

Stamp duty payment

If the property deed is done in Maharashtra, then all the instruments and documents that are supposed to be charged along with the stamp duty must be stamped prior to or during execution. 

Additionally, if the property deed is performed outside Maharashtra, the property can be stamped within 3 months. Before payment, individuals also need to know the difference between stamping and franking charges of a home loan. 

Things to consider while making payment

While paying Maharashtra stamp duty charges, it is essential to keep certain things in mind:

  • Firstly, check the date of the stamp paper issue as it must not be older than 6 months from the date of transaction. 
  • Secondly, stamp paper mustn’t be in the lawyers’ name of the parties concerned or the CA. It should be in the name of the parties involved. 
  • Parties can use non-reusable adhesive or impressed stamps but make sure to cancel those while executing the payment. 

Before paying stamp duty, individuals willing to buy a property can also consider a home loan. 

Steps to pay stamp duty in Maharashtra online

Step 1: Log in to the Maharashtra stamp and registration website and register. Individuals can also pay without the using the registration option. 

Step2: Secondly, select the citizen option and then the mode of payment option. 

Step 3: Click on “Make Payment to Register your Document”. Now pay just the registration fee or only the stamp duty only or both together per affordability.

Step 4: Now, enter the concerned property’s details, such as owner information, surrounding area details and others.  

Before considering a housing loan or making payment of stamp duties, it is advisable to check how much are the stamp duty, and registration levied on a home loan.

Selected financers extend pre-approved offers that simplify and expedite loan processing. Such offers are available on a range of financial products, such as loans against property, home loans, etc. Candidates can enter their names and contact details to check their pre-approved offers

Individuals are advised to thoroughly check the Maharashtra stamp duty rates and other applicable charges before making a transaction.

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