What Are The Current Stamp Duty And Registration Charges In Maharashtra?

The role of stamp duty is primarily found in property transactions. Buyers of house properties must pay stamp duty and registration charges. If you are located in Maharashtra, you pay the charge based on the rates of stamp duty in Maharashtra. 

When you buy a property, you must have noticed a stamp duty payable over and above the cost of the property. This stamp duty is a transactional charge payable whenever you buy or sell a moveable or immoveable property. A state levies this charge on taxpayers, and the Central Government has made it mandatory under Section 3 of the Indian Stamp Act, 1899. 

Let’s understand all about a stamp duty in Maharashtra and the applicable rates for the same. 

What are the Stamp Duty Rates in Maharashtra?

Every state has its own stamp duty rules. The rules for levying stamp duty in Maharashtra are contained in the Maharashtra Stamp Act, passed in 1958. Schedule 1 of the Act lists the different instruments on which stamp duty would be levied. 

The aggregate amount of stamp duty in  contains different types of taxes and charges too. The Maharashtra stamp duty rates have been changing recently to combat the real estate sector’s lull and provide relief to individuals in the COVID-19 pandemic. The changes in the rates of the stamp duty in Maharashtra are as follows:

• From August 2020, the stamp duty was reduced to 2% from 5%. This reduction was allowed from 1^st September 2020 to 31^st December 2020. 
• From 1^st January 2021, the rates were increased slightly to 3%
• From 1st April 2021, stamp duty rates were restored and charged at 5%, including a 1% metro cess.

The rates have also changed from 1^st April 2022. 

Stamp Duty and Registration Charges in Maharashtra in 2022

The latest news on stamp duty in Maharashtra is that the rates have changed for the financial year 2022-23. With effect from 1^st April 2022, the stamp duty rates are as follows:

Women property owners or buyers enjoy 1% lower stamp duty rates. Moreover, properties situated in urban areas that fall under the jurisdiction of Municipal Corporation or Council pay a 1% additional charge as cess, transport surcharge or local body tax. 

For properties falling under rural areas that the Municipal Corporation or Council does not govern, a 1% cess is called the Zilla Parishad cess. Properties located under the Nagpur Municipal Corporation or the Nagpur Improvement Trust have to pay an additional 0.50% surcharge over the 1% additional surcharge already payable for stamp duty charges. 

Also Read: What Is Home Loan Stamp Duty And Why Is It Important For Property Buyers

Stamp Duty on Conveyance Deed in Maharashtra

Besides paying stamp duty on the registration of a house property, here are the rules on paying stamp duty on the conveyance deed. These are as follows –

The stamp duty on sale deed in Maharashtra would be different from these rates. Similarly, the stamp duty on development agreement in Maharashtra might also be different.

Stamp Duty in Maharashtra as Per Area Type

The stamp duty also depends on the area in which the property is located. Have a look at the applicable rates for 2021–

Stamp Duty and Registration Charges on Past Property Documents

The Maharashtra Stamp Act allows district collectors to ask for documents within 10 years of registration. The collectors can call for documents to check if the appropriate stamp duty has been paid on them or not. However, the Bombay High Court had dictated that the collectors cannot collect stamp duty on past documents that were not correctly stamped when the property was sold. Also, if stamping is required on past documents, the stamp duty would be that which was applicable on the past date when the transaction happened. As such, stamp duty and registration charges cannot be applied retrospectively.

Stamp Duty In Maharashtra on Lease Agreements

As mentioned, stamp duty on lease agreements stands at 5%.

Factors Determining Stamp Duty and Registration Charges in Maharashtra

Different factors determine the stamp duty and registration charges. These factors are as follows –

1. Type of property: Commercial properties attract a higher stamp duty compared to residential ones. Similarly, stamp duty on agricultural land  is different from non-agricultural lands.
2. Use of the property: The stamp duty and registration charges for agricultural land are different since the land is being used for cultivation. 
3. Type of locality: Properties that are located in cities and urban areas have a higher rate of stamp duty compared to properties that are located in rural or semi-urban areas
4. Age of the property: Newer properties have a higher stamp duty rate compared to older ones.
5. The market value of the property: The higher the market value of the property, the higher would be the stamp duty payable on the same
6. Gender of the property buyer: The Maharashtra government offers preferential stamp duty rates for females compared to male property owners.

How to Calculate Stamp Duty and Registration Charges in Maharashtra?

A plot’s registration charges are calculated based on two factors – the fixed reckoner rate and the property valuation. The State Government fixes the reckoner rate. It is charged for high property values.

If the reckoner rate is lower than the property values, the stamp duty would be calculated on the total value of the flat. 

Here’s an example showing how these charges work: 

You can also use the online stamp duty calculator to calculate the duty payable

How to Pay Stamp Duty and Registration Fees in Maharashtra Online?

How to Pay Stamp Duty and Registration Fees in Maharashtra Offline?

You can use stamp paper or franking to pay the stamp duty and registration charges offline. 

Also Read: Gift Tax: Meaning, Different Gift Tax Rates & Stamp Duty Provisions In India

Points to Consider before Paying Stamp Duty in Maharashtra 2022

Before you pay stamp duty, here are some important points that you should consider –

• The stamp paper should not be older than 6 months from the date of the transaction.
• Before registration, all assets on which stamp duty is payable should be stamped. This stamping can be done on the registration or the next working date.
• The stamp duty used in the transaction should be in the name of the parties involved.
• The adhesive stamp removed at the time of execution cannot be reused.

Are Tax Benefits Available on Stamp Duty and Registration Charges?

Yes, tax benefits are available on the home loan stamp duty in Maharashtra and the property or plot registration charges in Maharashtra. The tax benefit is available under Section 80C, and the deduction limit is Rs.1.5 lakhs. However, to claim the deduction, the following factors should be considered –

• Individuals and Hindu Undivided Families (HUFs) can claim a deduction under this section.
• The deduction is available on the purchase of new properties.
• Commercial buildings, resale properties and stamp duty on land purchase do not qualify for the deduction.

How to get a Stamp Duty Refund in Maharashtra?

If you do not buy the property after paying the stamp duty, you can claim a refund of the duty paid. Alternatively, you can claim a refund on the stamp duty in the following instances:

• If an excess stamp duty has been paid
• If the stamp paper is unused or is spoiled or damaged
• If any document is canceled
• If the court orders a refund
• If the stamp duty is collected more than once on the same challan
• If you have paid the stamp duty to different departments of heads

This refund is available only if you claim the refund within 6 months of paying the stamp duty. The refund is processed, and 90% of the paid duty is refunded. If you choose the e-payment process, a deduction of Rs.1000 is applicable on the refund. 

To claim the refund, you would have to make an application for the same. You would have to submit the original property agreement and the cancellation deed along with the application. Both of these documents should be registered to claim the refund. In the case of non-registration, a refund would not be available.

The refund application can be accessed online or offline. For online access you can download the form from the link – igrmaharashtra.gov.in/. You can download the form, fill it, attach the relevant documents and submit it offline for intimating an offline refund request. The process is as follows –

• Step 1: Visit the official website of the Government’s Department of Registration and Stamp 
• Step 2: Fill up the refund application form online
• Step 3: Submit the form and you would get an acknowledgement form
• Step 4: Download this form, attach the relevant documents and submit them to the Collector of Stamps Office
• Step 5: After submission, you can track the status of your refund online through the official website

To claim the refund online, the process is as follows –

• Step 1:Visit the website of the Department of Registration and Stamps. The link is https://appl2igr.maharashtra.gov.in/refund/ which takes you directly to the refund page
• Step 2: Agree to the terms and conditions and click on ‘New Entry’ 
• Step 3: Enter in your registered mobile number and verify it with the OTP sent therein
• Step 4: After you enter the captcha code and submit, the 11-digit refund token number would be generated
• Step 5: You would also have to create and confirm a new password for an online account to track your refund status
• Step 6: A refund form would open which you should fill and submit

Thereafter you would be able to track your refund status online

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

Yes, you do if the collector calls the documents within 10 years. The stamp duty payable would be determined on the past market rate on which the property transaction was done. However, as per the ruling of the Bombay High Court, no stamp duty would be payable on inadequately stamped documents. 

Maharashtra Stamp Duty Adjudication

The process of determining the stamp duty that should be paid on registering a document is called adjudication. The Maharashtra Government offers stamp duty adjudication services to assess the stamp duty liability for individuals. An officer of the Government inspects the relevant documents to determine the applicable stamp duty. 

The following laws govern the stamp duty adjudication in Maharashtra –

• Section 31 of the Maharashtra Stamp Act
• Maharashtra Stamp (Determination of Property’s True Market Value) Rules, 1995

As per Article 31 of the Maharashtra Stamp Act, you would have to pay a fee of Rs.100 to avail of the adjudication services. You can pay this fee at the counter of the Stamp Office. 

Final Word

You must know about the stamp duty in Mahrashtra if you stay of if you are buying a property. Payment of the stamp duty is a mandatory requirement when buying property. This also earns you a tax deduction which can help you lower your tax liability. So, understand what stamp duty is, how it is calculated and how to pay it so that you can fulfil the legal rules when buying property. 

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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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