Stamp Duty And Registration Charges In Mumbai (2023)
In Mumbai, stamp duty rates are levied as per the Maharashtra Stamp Act, 1958 (Bombay Stamp Act, 1958). However, through these latest amendments made to this Act, there has been an increase in the stamp duty in Mumbai effective from 1st April 2022 on property purchases. Amendments made to the Act include the revision of stamp duty on gift deeds, e-payment of stamp duty, penalty clauses, and increment of stamp duty under specific clauses.
If you are planning or have bought a property in Mumbai, Maharashtra, recently, know the stamp duty and registration charges, how to calculate them, how to pay these charges online and offline and the tax benefits you can avail by paying these fees. Read on!
Registration Charges and Stamp Duty Rates in Mumbai
As per these amendments made to the Act, the latest stamp duty rates in Mumbai are as follows:
| Particulars | Stamp Duty Rates |
| Male | 5% |
| Female | 4% |
| Male and female (co-owners) | 5% |
Registration charges in Mumbai for a property worth Rs. 30,00,000 is Rs. 30,000 and for property worth less than that, 1% of the property value is levied as stamp duty.
Stamp Duty in Mumbai Based on Area Type
Stamp duty in Mumbai depends on a lot of factors. One such factor is the location or area of the property. This is because stamp duty rates in Mumbai are calculated based on the circle rate or ready reckoner rate and market value of the property, as mentioned in the agreement.
Current stamp duty rates in Mumbai are as follows:
| Area or Location of the Property | Stamp Duty Rates |
| Within boundaries of gram panchayat | 3% of market value of the property |
| Within boundaries of the municipality in an urban area | 5% of market value of the property |
| Within boundaries of municipality/ panchayat or cantonment of any area under Mumbai Metropolitan Region Development Authority | 4% of market value of the property |
Stamp Duty on Different Types of Property Deeds in Mumbai
Among the various deciding factors, the type of property deed makes a difference in stamp duty rates paid in different parts of Maharashtra. The following table explains different stamp duty rates in Mumbai, Maharashtra as per Article 34 of the Bombay Stamp Act.
| Types of Deeds | Stamp Duty Rate |
| Power of attorney(PoA) | Municipal areas – 5%Gram Panchayat – 3% |
| Gift deed | 3% |
| Gift deed given to members of family, (residential or agricultural property) | Rs. 200 |
| Lease deed | 5% |
How to Calculate Stamp Duty and Registration Fees in Mumbai
The calculation process for registration charges and stamp duty on properties in Mumbai, Maharashtra, is done considering parameters based on which the rate varies.
Two parameters are considered while calculating stamp duty — guidance value and property market value.
Let’s look at this illustration for a better understanding.
Suppose there is a flat of 1000 square metres in Malad with a guidance rate of Rs. 65,000 per square metre.
So, the market value of that flat will be –
Size of flat x Guidance value= 1000 x 65,000= Rs. 6,50,00,000
Now, the stamp duty rate for Malad is 5%. So the stamp duty rate of that property will be-
6,50,00,000 X 5%= Rs. 32,50,000.
The property worth is more than Rs. 30,00,000. So, the registration fee will be Rs. 30,000.
How to Use Stamp Duty Calculator
If the manual calculation seems hectic, you can use a stamp duty calculator. Below mentioned steps will tell you how to use it.
- Step 1. Go to the Maharashtra online stamp duty calculator page.
- Step 2. Choose from the given options like ‘Gift’ or ‘Sales Deed’.
- Step 3. Choose the area you belong from like ‘Municipal Corporation’ or ‘Grampanchayat’.
- Step 4. Choose ‘Market Value’ and ‘Consideration Amount’ to get the stamp duty rate in the final step.
How to Pay Stamp Duty and Registration Charges in Mumbai Online?
You can follow these steps to know how to clear your dues online.
- Click on Government Receipt Accounting System (GRAS)
Go to the official website, Government Receipt Accounting System (GRAS) and select ‘Pay without Registration’.
- Click on ‘IGR’
Select IGR to get directed to a form for filling all necessary details.
- Enter Property and Personal Details
You will be directed to a form. Enter all the details related to the property, buyer and seller and payment details.
- Select Payment Method
In the final step of the form, you have to choose your preferred payment method and bank. After that, enter the CAPTCHA and click ‘Proceed’. If you don’t have internet banking facility available, you have to choose ‘Payment Across Bank Counter’ and pay challan across the chosen bank counter.
For offline payment, you have to choose between ‘Stamp Paper’ or ‘Franking’ to pay.
Also Read: Guide To Property Card In Mumbai: How To View & Verify
Things to Keep in Mind before Paying Stamp Duty in Mumbai
You should always be careful when it comes to legal proceedings. Here are some things you have to keep in mind while you pay stamp duty in Mumbai.
- Names of individuals involved in the agreement should be on the stamp paper.
- Property documents should be stamped within the immediate working day from the date of registration and execution. If the execution of the property deed is outside the territory, a maximum of 3 months can be taken.
- The stamp paper date should not surpass 6 months from the date of transaction.
Aspects Affecting Stamp Duty in Mumbai
Apart from the factors discussed above, here are the aspects that affect stamp duty rates in Mumbai:
- Property’s location: Stamp duty rates are generally higher in the urban areas under a municipality.
- Property’s age: Stamp duty also depends on the property’s age, whether it is new or old.
- Property type: Depending on the type of property (commercial/residential), the stamp duty changes.
- Owner’s age and gender: A few states offer concessions if the owner is either a female or a senior citizen.
Tax Benefits on Registration Charges and Stamp Duty in Mumbai
As per Section 80C of the Income Tax Act, 1961, individuals and Hindu Undivided Families (HUF) can avail of a tax deduction on stamp duty and registration charges in Mumbai. The following are the circumstances under which one can get tax benefits:
- You can claim tax benefits if expenses due to stamp duty and registration charges were incurred in the same year as a tax deduction.
- If the construction of the property is complete and you’ve done all the legal formalities, as the legal owner, you can claim tax benefits.
- Co-owners can also claim tax benefits, but it depends on their share in the property.
Final Word
Calculations and the payment processes related to property stamp duty and registration charges can be intricate. Now that you are aware of the stamp duty and registration charges updates, go ahead and pay the fees online or offline to avoid legal complications and make the process of property purchase smooth.
Stamp Duty Charges in Your City
FAQs
Ans: Yes, you can claim a refund on stamp duty in Mumbai but only under these circumstances:
If the transaction was illegal as per Section 31 of the Specific Relief Act
If there was an informational error in the stamp paper
Ans: There is generally no GST levied on stamp duty. But if you are buying an under-construction flat, then 12% GST has to be paid. This percentage can get down to 8% for some affordable flats.
Ans: If you don’t pay stamp duty dues within the given timeline, your documents will not get registered with the government. This can lead to a legal penalty of 4% on the due amount and even legal consequences.
Ans: There are two types of stamp papers used in India — judicial and non-judicial stamp papers. Judicial papers are used for judicial transactions. Non Judicial papers are used to register agreements, sale deeds, affidavits, declarations, and bonds.
Ans: Franking is the method to get the required documents stamped, which means that the charges levied are paid, and all dues are legally cleared. The agency imposes a franking fee for stamping the property documents.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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