Mumbai’s stamp duty increased by one percent when the state government declared an additional percent as a metro cess on real estate purchases, effective as of April 1, 2022.

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Update: The State government has announced a 1% metro cess on stamp duty, which is projected to drive up real estate costs in some cities in Maharashtra starting on April 1, 2022. An additional cess would be implemented in Mumbai, Pune, Thane, and Nagpur to fund the expansion of transportation infrastructure projects. In Mumbai, the stamp duty & registration fees would increase by 6% with the implementation of the metro cess. Similar to this, the metro cess will raise the present six percent and seven percent stamp duties in Nagpur and Pune, respectively.

 

Mumbai’s current stamp duty & registration fees

Areas in Mumbai	Stamp Duty rates in Mumbai for men	Stamp Duty rates in Mumbai for women	Registration charges in Mumbai
Within the municipal limits of any urban area	6% of the market value of property	5% of the market value of property	1%
Within the limits of any gram panchayat	3% of the market value of property	2% of the market value of property	1%
Within the limits of any municipal council/ panchayat/ cantonment of any area within MMRDA	4% of the market value of property	3% of the market value of property	1%

 

Understanding Maharashtra’s Stamp Duty Prices

Maharashtra has some of the highest stamp duty rates in the country, and the charges change depending on the region and nature of the transaction. For instance, the stamp duty rates for residential houses and commercial buildings are different. Below are the current Maharashtra stamp duty rates for various types of transactions:

Gift Deed: 2%

Sale Deed: 5%

Mortgage Deed: 0.1% of the mortgage amount

Lease Deed: 0.25% of the lease amount

Leave and License Agreement: 0.25% of the license fee or security deposit, whichever is higher

 

How is Mumbai’s stamp duty rate determined?

The Ready Reckoner rate is typically used to determine stamp duty rates. The price of stamp duty varies by state in India. Depending on whether a piece of property is situated inside the boundaries of a municipal corporation, municipal council, or gramme panchayat, different stamp duties apply in Maharashtra. Moreover, there is a one percent registration charge.

 

For example:

Within Mumbai’s municipal boundaries, Mr. X purchases a property measuring 1,000 square feet. The area’s RR Rate is Rs 5,000 sq foot. The formula for calculating stamp duty is as follows:

Property value as per RR Rate: Rs 50 lakh

Stamp duty payable: 6% of Rs 50 lakh = Rs 3 lakh

Stamp duty: 6%

Registration charges: 1% of Rs 50 lakh = Rs 50,000

Stamp duty & registration fees added together equal Rs. 3.5 lakh.

 

Maharashtra’s stamp duty & registration fees

Cities	Stamp Duty rates (Male)	Stamp Duty rates (Female)	Registration Charges
Mumbai	6% (Stamp duty 5% + 1% Metro Cess)	5% (Stamp duty 4% + 1% Metro Cess)	For properties above Rs 30 lakh – Rs 30,000.
			For properties below Rs 30 lakh – 1% of the property value.
Thane	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above Rs 30 lakh – Rs 30,000.
			For properties below Rs 30 lakh – 1% of the property value.
Navi Mumbai	% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above Rs 30 lakh – Rs 30,000.
			For properties below Rs 30 lakh – 1% of the property value.
Pune	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above Rs 30 lakh – Rs 30,000.
			For properties below Rs 30 lakh – 1% of the property value.
Nagpur	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above Rs 30 lakh – Rs 30,000.
			For properties below Rs 30 lakh – 1% of the property value.
Pimpri Chinchwad	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above Rs 30 lakh – Rs 30,000.
			For properties below Rs 30 lakh – 1% of the property value.

Maharashtra’s stamp duty & registration charges

Real estate buyers must pay stamp duty, which is essentially a type of property tax. Like to other Indian States, Maharashtra levies stamp duty and registration fees on various types of property, including freehold or leasehold, land (both agricultural and non-agricultural), independent houses or flats, residential flats, & commercial properties. It provides a sizable portion of the government’s funding. The Maharashtra Stamp Duty Act of 1958 applies to the entire state of Maharashtra. The Act imposes stamp duty on real estate properties at the rate chosen by the State.

• A number of variables, including the location and market value of the property, will affect how much stamp duty must be paid.
• Because a commercial property offers more facilities, square footage, and security features than a residential one, the stamp duty on a business property is slightly higher.
• The locality & jurisdiction determine the stamp duty for land purchases. If your property parcel is situated in an urban or municipal locality, you will be required to pay a higher stamp duty land tax. In a same vein, the buyer will pay less for the land if it is located inside Panchayat boundaries than if it were in an urban area.

 

For female homebuyers in Mumbai, Maharashtra, there is a stamp duty discount.

Prior to the announcement, the Maharashtra government set the stamp duty rates for registering real estate at 5% in Mumbai & 6% elsewhere in the State. For property transfers done only in a woman’s name, the government approved a one percent stamp duty discount in March 2021. As a result, Mumbai’s female homebuyers must pay 4% in stamp duty. The compensation is not available to joint owners (Male and Female).

 

In Mumbai, Maharashtra, investors receive a stamp duty discount.

The Maharashtra government has approved a measure to give investors up to three years of stamp duty exemption. In the past, the investor had to sell their residences within a year after buying them in order to be eligible for the waiver. Investors will soon be able to avoid paying stamp duty if they sell their property within three years after buying it. In such transactions, the stamp duty is not paid on the total amount but simply on the difference in the property’s price.

 

Maharashtra’s conveyance deed stamp duty

Sales Agreement	Stamp Duty
Lease agreement	5%
Power of Attorney	5% for property within the municipal limits. 3% for areas within the gram panchayat.
Gift sales agreement	3%
Gift sales agreement for residential/agricultural property transferred to family members	Rs 200

 

Maharashtra’s stamp duty on gift deeds

In accordance with the Maharashtra Stamp Act, which was recently revised in 2017, the stamp duty on gift deeds for non-family members is three percent of the property’s purchase price if the property being considered is a farmland, agricultural land, and residential property.

 

Maharashtra’s stamp duty on lease deeds

In Maharashtra, all leasing agreements must be registered. In Maharashtra, lease agreements, often referred to as leave and licence agreements, must be stamped in the state by paying a stamp duty of 0.25 percent of the entire rent for the duration of the arrangement.

 

Maharashtra charges stamp duty on powers of attorney

According to the regulations of the Maharashtra Stamp Act, 1958, and the Maharashtra Stamp (Determination of Real Market Value of Property) Rules, 1995, the stamp duty on a Power of Attorney (POA) document in Mumbai is decided.

The Maharashtra government has set the stamp duty for a POA document in Mumbai at 0.25 percent of the property’s market value. The government-set standards and pertinent rules and regulations are use to determine the market value of the property.

 

How can stamp duty in Mumbai be paid online?

A number of State governments have introduced electronic stamp duty payment in an effort to streamline the property registration procedure. Homebuyers might pay the stamp duty, registration fee, or any other fees online with just a few clicks with the use of an e-stamp registration service. The process for paying stamp duty online is quick, clear, and easy. By taking a few simple procedures, homebuyers can pay stamp duty on the purchase of a property.

• The Maharashtra Stamp & Registration Department website can be accessed by homebuyers by clicking here.
• Payers must fill out a form after arriving on this website with information about the property as well as its surroundings.
• After entering all the necessary information, you must select the payment gateway. All significant nationalized banks have connections to the website.
• Choose your bank, then carry out the transaction.

 

Factors influencing Mumbai’s stamp duty rates

The following are the main variables that impact stamp duty rates:

• Age and gender of the property owner: Female homebuyers are eligible for a 1% stamp duty discount.
• Location of the property: The cost of stamp duty is higher inside an urban area’s municipal limits than outside.
• Property type and use: Commercial properties, such shops and offices, have higher stamp duty rates than residential ones. For apartments, independent homes, etc., the fees differ as well.
• Property age & amenities: High-end amenities in housing societies frequently result in greater stamp duty. Older properties also incur lower stamp duty fees.

 

How can I get my Maharashtra stamp duty refund?

Stamp duty refunds are permit by IGR Maharashtra in the following situations:

• if the stamp paper is declared unfit for use because it has writing errors.
• if the stamp paper is not signed or has inaccurate information.
• any of the parties or a judge finds the transaction to be fraudulent.
• if any party declines to stamp the paper.
• if a crucial signatory party passes away before signing the stamp paper.
• In the event that one party rejects the terms & conditions.
• if the registration is performed using stamp paper of the appropriate denomination but the value of the stamp on the document is insufficient.
• if the transaction has been recorded using another stamp paper document but the original stamp paper is ruined or useless.

To apply for the refund process, you must do it online, obtain a token, and follow the steps below to submit your application to the closest SRO:

• To access the Stamp Duty Refund website, use your mobile number as your login.
• Provide a password and the refund token number.
• Details such a personal bank account number, the cause for the reimbursement, etc. should be filled in.
• Specify your payment method, the closest SRO, and the stamp dealer.
• Enter all the information, then send this token number to the appropriate SRO.

 

Do old real estate documents require stamp duty to be paid?

According to the Maharashtra Stamp Act, the collector may request property records in order to confirm that the correct amount of stamp duty was paid. Only within ten years of the registration date could this be done. Additionally, the Bombay High Court recently ruled that the stamp duty on documents that were improperly stamp may not be collect at a subsequent sale. Additionally, if the stamp duty is paid within a 10-year period, it must be calculate using the market rate in effect at the time the transaction was finalized.

 

In Mumbai, do stamp duty payments qualify for tax benefits?

Stamp duty and registration fees that are directly connect to the transfer are eligible for a tax credit under Section 80C of the Income Tax Act of 1961. The most you may deduct is Rs 1.5 lakh.

 

Latest news and announcements on stamp duty in Mumbai, Maharashtra

According to media reports, the Indian financial capital’s sales trend is still going strong. Around 8,500 real estate transactions were record by the stamp department during the month, an increase of 11% from the previous year. The majority of these are residential properties with 500–1,000 square foot sizes. Over 11,000 real estate documents were stamp earlier, in July. In terms of deed registration & stamp duty collection, this July was the best ever.

 

 

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