One of the most important closing costs that arise during the purchase of a property is Stamp Duty. When buying a property, acquiring the property is an important part of the job. However, in order for it to be an official transfer of ownership, the property must be registered.
At the time of this registration, your local registration documents are stamped by the controlling authority. This Stamp makes the document acceptable to the court as proof of ownership for any future use.
The stamp duty makes your ownership over the property legal and is admissible in court in case of any future disputes over the ownership of the property, by any other party.
Also known as the Bombay Stamp Act, the Maharashtra Stamp Act was passed in the year 1958. According to this act, all documentation requiring stamp duty needs to be paid in full or before the date of execution of that document.
Failure in payment of stamp duty can result in a heavy penalty in the state of Maharashtra.
Factors That Affect Stamp Duty In Maharashtra
Many factors like the age of the property owner, their gender, and the age of the property can affect the stamp duty rates in various states all across India. In the state of Maharashtra, the following factors can affect the stamp duty you have to pay on your property purchase.
1. Age of the property: The age of the property you’re looking to buy can significantly reduce or increase the stamp duty you pay on it. The older the construction of the property is the more rebate can be avail on the stamp duty.
2. Type of property: The type of property refers to the use that the property will undergo. For example, a residential property will attract lesser stamp duty charges as compared to a commercial property n Maharashtra.
3. Age of the owner: Owners that are senior citizens are required to pay comparatively lower stamp duty charges as compared to those not under this category.
4. Gender of the owner: Women property buyers in Maharashtra are required to pay reduced stamp duty in Maharashtra as compared to male property owners.
Stamp Duty Charges In Maharashtra
Stamp duty in Maharashtra is calculated on either the basis of the property value as per the purchase contract or the Ready Reckoner rate, whichever is higher. The value of stamp duty varies within the state of Maharashtra depending on whether the property is in urban or rural areas and also the authority governing it. The authorities that might govern the stamp duty charges are the municipal corporation, the municipal council, or the gram panchayat.
The following are the stamp duty charges in different areas of Maharashtra with effect from April 2021.
City | Stamp Duty+Local Body Tax for Men | Stamp Duty+Local Body Tax for Women |
Mumbai | 5%+0% | 4%+0% |
Pune | 5%+1% | 4%+1% |
Thane | 5%+1% | 4%+1% |
Navi Mumbai | 5%+1% | 4%+1% |
Pimpri Chinchwad | 5%+1% | 4%+1% |
Nagpur | 5%+1% | 4%+1% |
1% registration fee is applicable on all properties above the value of Rs. 30 Lakh, across the state of Maharashtra. For properties under Rs. 30 Lakh, the stamp duty charges are Rs 30,000.
Also Read: Stamp Duty & Property Registration Charges In Pune - 2023
Stamp Duty Charges As Per Conveyance Deed In Maharashtra
Stamp duty is a charge that is applicable to any transfer of property ownership. This means that no gifts are exempt from stamp duty. The following is the stamp duty charges on gifts and other deeds in the state of Maharashtra.
1. Stamp Duty charges on Gift Deeds in Maharashtra are 3%.
2. In case the gift is a residential property or agricultural land and is being gifted within the family with no payment exchanged, then the stamp duty charges on the gift deed will be static at Rs.200.
3. Stamp duty on lease deeds is charged at 5%.
4. In case of transfer of power of attorney, the stamp duty charges vary in urban and rural areas. In such a case, the stamp duty charges for properties in urban areas are 5% and in rural areas are 3%.
How To Pay Stamp Duty In Maharashtra Online?
You can now pay your stamp duty in Maharashtra online by following these simple steps:
Step 1: Click this link to open a tab on the Maharashtra Mahakosh website. On this page, you will be able to pay your stamp duty charges.
Step 2: If you have an account on this portal, simply sign in to your account. In case you don’t already have an account, you can either register from scratch or just select the option to ‘Pay Without Registration.
Step 3: Once you click ‘Pay Without Registration’ you will be redirected to the next page that will provide you with the options of the types of transactions you can make.
Step 4: Select the ‘Citizen’ option on this tab and choose the ‘Make Payment To Register Your Document’ option.
Step 5: You will now be able to select which charges you want to pay. You can both the stamp duty and registration charges simultaneously and individually as well.
Step 6: Fill in all the details that the form asks you to fill out and proceed to pay.
Step 7: You will then be taken to the payment gateway and can make the final payment of your stamp duty charges.
Once the payment is done, you will be provided with a receipt of payment that you need to furnish at the time of execution of the sale deed. Make sure to keep this document safe along with your other property purchase documents as it is a document that is recognised by the court of law in any legal disputes.
Maharashtra Stamp Duty Refund
In case any of the following events take place, you can get a refund on your stamp duty:
1. Any writing mistakes that render the stamp document invalid.
2. The stamp paper has only partial information or has not been signed and has been rendered useless.
3. The transaction has been declared void by either parties or the court as per Section 31 of the Specific Relief Act.
4. An individual required to sign the stamp paper has passed away, declines to sign it, or does not comply with the terms and conditions.
5. Another stamp paper has been executed due to issues or errors in the existing stamp paper.