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.
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:
The rates have also changed from 1st April 2022.
The latest news on stamp duty in Maharashtra is that the rates have changed for the financial year 2022-23. With effect from 1st April 2022, the stamp duty rates are as follows:
|Name of the area||Stamp duty rates in Maharashtra for men||Stamp duty rates in Maharashtra for women|
|Mumbai||6% (5% stamp duty + 1% metro cess)||5% (4% stamp duty + 1% metro cess)|
|Navi Mumbai||7% (1% metro cess + transport surcharge + local body tax + stamp duty)||6% (1% metro cess + transport surcharge + local body tax + stamp duty)|
|Thane||7% (1% metro cess + transport surcharge + local body tax + stamp duty)||6% (1% metro cess + transport surcharge + local body tax + stamp duty)|
|Pune||7% (1% metro cess + transport surcharge + local body tax + stamp duty)||6% (1% metro cess + transport surcharge + local body tax + stamp duty)|
|Pimpri-Chinchwad||7% (1% metro cess + transport surcharge + local body tax + stamp duty)||6% (1% metro cess + transport surcharge + local body tax + stamp duty)|
|Nagpur||7% (1% metro cess + transport surcharge + local body tax + stamp duty)||6% (1% metro cess + transport surcharge + local body tax + stamp duty)|
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.
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 –
|Conveyance Deed||Rate of Stamp Duty|
|Gift deed for agricultural or residential property that is passed to your family members||Rs.200|
|Power of attorney||Properties located in Gram Panchayat – 3%Properties located in municipal areas – 5%|
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.
The stamp duty also depends on the area in which the property is located. Have a look at the applicable rates for 2021–
|Type of area||Stamp duty payable|
|Mumbai and its suburban areas||5%|
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.
As mentioned, stamp duty on lease agreements stands at 5%.
Different factors determine the stamp duty and registration charges. These factors are as follows –
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:
|Reckoner rate||Rs. 75,000 per square meter|
|Size of the flat||1000 square meters|
|Value of the property||Rs.10 crores|
|Stamp duty payable @5%||5% of 10 crores = Rs.50 lakhs|
You can also use the online stamp duty calculator to calculate the duty payable
Follow the steps below to apply for stamp duty and registration fees in Maharashtra online:
The website is https://gras.mahakosh.gov.in/igr/frmIndex.php.
You can pay without registering or registering yourself and then proceed with the payment.
Click on the option ‘Pay stamp duty and registration’.
After filling out the form, pay the stamp duty through any available payment modes.
you would get a challan that would contain the reference number, branch code, CIN and PRN number.
You can use stamp paper or franking to pay the stamp duty and registration charges offline.
Before you pay stamp duty, here are some important points that you should consider –
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 –
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:
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 https://www.igrmaharashtra.gov.in/SB_ACTIVITES/activites_StampDutyRefund.aspx. 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
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.
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 –
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.
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.
Ans: The stamp duty is not fixed. It can be changed depending on the Government’s decision. The Government publishes stamp duty news in Maharashtra whenever there is a change in the applicable rates.
Ans: The property registration charges are 1% of the value of the property subject to a maximum of Rs.30,000
Ans: According to the stamp duty in Maharashtra latest news, the ready reckoner rates for 2022 are as follows –
Area : Ready reckoner rates
Thane : 9.48%
Mumbai : 2.6%
Navi Mumbai : 8.90%
Vasai : 9%
Panvel : 9.24%
Virar : 9%
Pune : 6.12%
Sholapur : 8.08%
Pimpri Chinchwad : 12.36%
Ahmadnagar : 7.72%
Nashik : 12.15%
Latur : 11.93%
Malegaon : 13.12%
Aurangabad : 12.38%
Ans: You can negotiate the registration charges by requesting the deed writer, negotiating the legal charges and by paying for the stamp papers.
Ans: If you do not pay the stamp duty charges, your property would not be registered with the Government.
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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.