While purchasing a property, a homebuyer needs to pay certain additional charges apart from the cost of a property. Stamp duty and registration charges are the taxes that one needs to be aware of before investing in a property.
In Maharashtra, homebuyers need to pay one percent extra stamp duty in the form of a metro cess. However, this move to implement the cess increased the burden of taxes on the homebuyers. As per the recent update, there are no such plans to pull back the cess, and a decision regarding the revision in stamp duty, and ready reckoner rates is to be taken by March 2024 end. The State government has so far earned around Rs 3,600 crore from metro cess to date.
In this article, 99acres covers everything you need to know regarding stamp duty and registration charges in Mumbai.
Current Stamp Duty and Registration Charges in Mumbai (2024)
| 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 municipal council/ panchayat/ cantonment of any area within MMRDA | 4% of the market value of property | 3% 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% |
Disclaimer: The above rates are derived from the IGR Maharashtra.
Stamp duty concession for female homebuyers in Mumbai, Maharashtra
The Maharashtra government has been actively trying to increase home ownership among female homebuyers. Since March 2021, the State has been observing a one percent rebate in stamp duty for properties transferred in a woman's name. As a result, all women homebuyers in Mumbai have to pay five percent as stamp duty. This rebate is not applicable to joint owners (Male and Female).
Metro cess on stamp duty
The State government announced one percent metro cess on stamp duty, effective from April 1, 2022. An additional cess is applicable on properties in Mumbai, Pune, Thane, and Nagpur, to fund the growth of transport infrastructure projects. Following the introduction of metro cess, the stamp duty and registration charges in Mumbai have gone up to six percent. Similarly, in Pune and Nagpur, the introduction of metro cess has raised the stamp duty to seven percent, which was previously six percent.
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Area-wise stamp duty in Mumbai
| Area | Stamp Duty Rate | Registration Charge |
|---|---|---|
| South Mumbai | 5% (+1% metro cess) | 1% |
| Central Mumbai | 5% (+1% metro cess) | 1% |
| Western Mumbai | 5% (+1% metro cess) | 1% |
| Harbour | 5% (+1% metro cess) | 1% |
| Thane | 5% (+1% metro cess) | 1% |
| Navi Mumbai | 5% (+1% metro cess) | 1% |
Know Your Neighbourhood Well
Understanding the Stamp Duty Rates in Maharashtra
The stamp duty rates in Maharashtra are among the highest in India, and they vary depending on the location and type of transaction. For example, the stamp duty rates for residential properties are different from those for commercial properties. Here are the current stamp duty rates in Maharashtra for different types of transactions:
- Sale Deed: 5 percent
- Gift Deed: 2 percent
- Lease Deed: 0.25 percent of the lease amount
- Mortgage Deed: 0.1 percent of the mortgage amount
- Leave and License Agreement: 0.25 percent of the license fee or security deposit, whichever is higher
How is the stamp duty rate calculated in Mumbai?
Stamp duty rates are usually calculated on the Ready Reckoner rate. Stamp duty charges in India vary from State to State. In Maharashtra, the stamp duty on the property varies within the State if the real estate property falls within the municipal corporation limits, municipal council, and gram panchayat, while one percent is charged as registration fee.
For example:
Mr X buys a 1,000 sq ft property within the municipal limits of Mumbai. The RR Rate of the locality is Rs 5,000 sq ft. The stamp duty calculation will look like this:
Property value as per RR Rate: Rs 50 lakh
Stamp duty: 6 percent
Stamp duty payable: 6% of Rs 50 lakh = Rs 3 lakh
Registration charges: 1% of Rs 50 lakh = Rs 50,000
Total stamp duty and registration charges = Rs 3.5 lakh
Stamp Duty and Registration Charges in Maharashtra (2024)
| 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. | |||
| 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. | |||
| 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 | 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. | |||
| 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. |
Stamp Duty and Registration Charges in Pune
Stamp Duty and Registration Charges in Thane
Basically, stamp duty is a type of property tax paid by home buyers while purchasing a property. Like other States in India, Maharashtra, too, levies stamp duty and registration fees on all types of properties including freehold or leasehold, land (agricultural and non-agricultural), independent houses or flats, and residential flats or commercial properties. It is a major source of revenue for the state. The Maharashtra Stamp Duty Act, 1958, applies across the entire State of Maharashtra. The Act levies stamp duty on real estate properties at the rate fixed by the State government.
- Stamp duty charges are payable at rates based upon several parameters including the market value of the property, area of the property, or various other criteria.
- Since a commercial unit includes many amenities, floor space, and security features, the stamp duty on a commercial property is slightly higher as compared to a residential property.
- Stamp duty on land purchase is basis the locality and jurisdiction. If your land parcel falls within a municipal locality or an urban area, you need to shell higher stamp duty land tax. Likewise, if the land is located in Panchayat limits, the buyer will have to pay less as compared to the urban region.
Stamp duty concession for investors in Mumbai, Maharashtra
Maharashtra government has cleared a bill to extend the stamp duty waiver period for investors up to three years. Earlier, the investor would sell their properties within a year of buying them to earn the benefit of the waiver. Now, the investors can earn a stamp duty waiver on a resale made within three years of purchasing their property. The stamp duty is paid only on the price difference of the property instead of the whole amount in such deals.
Stamp duty in Maharashtra on conveyance deed in 2024
| Sales Agreement | Stamp Duty |
|---|---|
| Lease agreement | 5% |
| Gift sales agreement | 3% |
| Gift sales agreement for residential/agricultural property transferred to family members | Rs 200 |
| Power of Attorney | 5% for property within the municipal limits. 3% for areas within the gram panchayat. |
Stamp duty in Maharashtra on gift deed in 2024
Last amended in 2017, Article 34 of the Maharashtra Stamp Act states that if the property in consideration is a farmland or an agricultural land or a residential property, the stamp duty will be Rs 200, if passed on to family members whereas, for non-family members, the stamp duty on gift deed will be three percent of the property cost.
Stamp duty in Maharashtra on lease deed
All lease agreements are required to be registered in Maharashtra. Lease agreements in Maharashtra, also known as leave and license agreements should be stamped in the state by paying 0.25 percent of the total rent for the period as stamp duty.
Stamp duty in Maharashtra on Power of Attorney
The stamp duty on a Power of Attorney (POA) document in Mumbai is determined based on the provisions of the Maharashtra Stamp Act, 1958 and the Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995.
The stamp duty for a POA document in Mumbai is 0.25 percent of the market value of the property, as specified by the Maharashtra government. The market value of the property is determined based on the guidelines established by the government and relevant laws and regulations.
Stamp Duty in Maharashtra on Redeveloped Society
The Maharashtra government has recently notified that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project. The allottee will be required to pay only Rs 100 as stamp duty whereas the principal agreement between the developer and housing society will be charged as per the conveyance deed.
Stamp Duty and Registration Charges for resale flat in Mumbai
According to the India Stamp Act, 1899, it is compulsory for every buyer to pay the stamp duty and registration charges on each property purchase. This act includes registration of resale property. As per the Maharashtra Stamp Act, the stamp duty on the resale flats is five percent from April 1, 2021.
Additionally, the buyer must pay Rs 30,000 as registration charges on properties valued below Rs 30 lakh. Subsequently, for properties above Rs 30 lakh value, the registration charges are kept at one percent of the property value. However, GST is exempted on resale properties.
How to pay stamp duty online in Mumbai: Step-by-Step
To simplify the process of property registration, several State governments have launched e-payment of stamp duty. E-stamp registration facility would help homebuyers to pay the stamp duty, registration fee or any other charges online with a few clicks. The online stamp duty payment procedure is time-efficient, transparent and simple. Homebuyers can pay stamp duty on the purchase of a property by following some easy steps.
- Homebuyers can log on to the Maharashtra stamp and registration department
- After landing on this page, payers would need to fill up certain information regarding the property and its area.
- Once all the required details are filled-up, you need to choose the payment gateway. The website has been linked with all major nationalised banks.
- Choose your bank and proceed with the payment.
How to pay stamp duty in Mumbai, Maharashtra: Offline methods
Stamp duty in Mumbai, Maharashtra, can be paid via two different offline methods that are highlighted below:
- Franking: Franking is the process that involves an agreement printed on paper and deposited to an authorised bank. The document will then be processed for payment of stamp duty via a franking machine
- Stamp Paper: Payment of stamp duty through stamp paper is a traditional process. The stamp paper can be purchased from the local authority or SHCIL office, which is then registered at the office of sub-registrar
Stamp duty in Maharashtra: Amnesty scheme Abhay Yojana launched
In a move to provide relief to property owners, the Maharashtra government has announced an Abhay Yojana (amnesty scheme) for the penalty that can be levied for insufficient or non-payment of stamp duty. Property owners are charged a penalty of 2% per month of the deficient stamp duty from the date of registration or execution of the document till the date on which you are making the payment. The maximum penalty that can be levied in such cases is 400%. The Abhay Yojana is operational for two months in the first phase (1 December 2023 to 31 January 2024) and for another two months in the second phase (1 February 2024 to 31 March 2024).
Under phase-1 of the amnesty scheme, if the stamp duty due is up to Rs1 lakh, the entire amount and the entire applicable penalty would be waived off, provided that the applicant submits an application and self-attested copies of supporting documents on or before the last day as stipulated. However, if the stamp duty due is more than Rs 1 lakh, 50% of it would be payable under the amnesty scheme, while the entire applicable penalty would be waived off.
If you miss the deadline under phase-1, you can still apply for amnesty under phase-2, for an 80% reduction in the payable stamp duty and an 80% reduction in the applicable penalty when the stamp duty due is less than Rs1 lakh. Similarly, if the stamp duty due is more than Rs 1 lakh, there would be a reduction of 40% on the payable stamp duty and a reduction of 70% on the applicable penalty in this second phase.
Factors affecting stamp duty charges in Mumbai
Following are the major factors that affect the stamp duty charges:
- Property owner's age and gender: Female homebuyers get 1 percent rebate on stamp duty payment
- Property location: Stamp duty in municipal limits of an urban area is higher as compared to those are outside it
- Property type and its usage: Stamp duty on commercial property such as shops and offices is higher than residential one. The charges vary for flats, independent house, etc. as well
- Property age and amenities: Housing societies which have high-end facilities often attracts higher stamp duty. Similarly, old properties attract less stamp duty charges
- Property Location: The location of a property also impacts the stamp duty charges in Mumbai. It is because stamp duty is dependent on Maharashtra’s ready reckoner rates, which are lower or higher based on the location of the chosen property
How to get a stamp duty refund in Maharashtra?
IGR Maharashtra allows stamp duty refund under the following circumstances:
- If the stamp paper has writing mistakes and is deemed not fit to use.
- If the stamp paper has incomplete information or is not signed.
- If the transaction is found to be illegitimate by any of the parties or the court of law.
- If one of the parties refuses to sign the stamp paper.
- If one of the parties, whose signature is important, dies before signing the stamp paper.
- If one of the parties fails to agree with the terms and conditions.
- If the value of the stamp on the document is insufficient but the registration is completed using stamp paper of the correct denomination.
- If the stamp paper is unusable or spoiled but the transaction has been registered by using another stamp paper document.
To apply for refund process, it is mandatory to apply online, get the token, and submit the application to the nearest SRO by below-given procedure:
- Visit Stamp Duty Refund page and login using your mobile number
- Generate the refund token number and create password.
- Fill in the details such as personal bank account details, reason for refund, etc.
- Mention the type of payment you made, nearest SRO and stamp vendor.
- Register all the details and submit this token number to the respective SRO.
Do you need to pay stamp duty on past property documents?
As per Maharashtra Stamp Act, the collector can recall property documents to verify if the stamp duty paid is appropriate. This could be done only within a period of 10 years from the date of registration. In addition to this, in a recent ruling, the Bombay High Court has maintained that the stamp duty on inadequately stamped documents could not be collected during a subsequent sale. Also, if the stamp duty is being collected within 10-year time frame, it has to be calculated on the basis of the prevalent market rate when the transaction was completed.
Earlier, the state government had announced an amnesty scheme for property owners with respect to the penalty that can be levied for the insufficient payment of stamp duty made in the past. The scheme proposes to limit the penalty payable on certain transactions to 10 percent of the deficient stamp duty, instead of the 400 percent which can be levied in the normal course by the government. The scheme applies to all the transactions of sale or transfer of tenancy rights, of residential houses within Maharashtra and is available only for documents that have been executed on or before December 31, 2018.
Are tax benefits applicable on stamp duty payments in Mumbai?
According to Section 80C of the Income Tax Act 1961, expenses related to stamp duties and registration charges directly related to the transfer are eligible for a tax deduction. The maximum deduction limit is Rs 1.5 lakh.
Stamp duty in Mumbai: How to search challan online?
The Mahakosh portal of Maharashtra allows citizens to search challan online. This can be done using the following procedure-
Step 1: Log on to the official website of the Government Receipt Accounting System (GRAS) or click on the given link- https://gras.mahakosh.gov.in/igr/frmIndex.php
Step 2: On the home page, click on the ‘Search Challan’ tab
Step 3: A new window will appear on your screen with a form
Step 4: Enter the required details, including department, bank, district, amount, CIN, GNR and the captcha code
Step 5: Once all the details are entered, click on ‘Submit’, and your challan will be displayed on the screen
Note: Challans generated between April 1, 2008, and March 31, 2017, are archived and accessed via the Archive challan tab.
How to obtain a list of banks for e-challan?
The Stamp and Registration Department of the State, IGR Maharashtra, allows users to pay the stamp duty charges through e-challan. The list of banks offering e-challan facilities is available on the IGR Maharashtra portal. Here’s how you can access it-
Step 1: Log in to the official website of the Government Receipt Accounting System (GRAS) or click on the given link- https://gras.mahakosh.gov.in/igr/frmIndex.php
Step 2: On the home page, scroll to the bottom to find the ‘Available banks for e-challan’ tab
Step 3: The list containing banks with the facility will appear in a new window
Here are some banks that provide e-challan facilities-
| Banks for e-challan | |
|---|---|
| IDBI Bank | Allahabad Bank |
| Bank of Baroda | Indian Overseas Bank |
| Punjab National Bank | Canara Bank |
| Corporation Bank | Oriental Bank of Commerce |
| Bank of India | Union Bank |
| Dena Bank | Andhra Bank |
| Vijaya Bank | Central Bank of India |
| Syndicate Bank | Indian Bank |
| State Bank of India | Uco Bank |
| Bank of Maharashtra | |
Stamp duty in Mumbai, Maharashtra: Latest updates and announcements
January 2024: Maharashtra government has announced an Abhay Yojana (amnesty scheme) for the penalty that can be levied for insufficient or non-payment of stamp duty. The Abhay Yojana is operational for two months in the first phase (1 December 2023 to 31 January 2024) and for another two months in the second phase (1 February 2024 to 31 March 2024).
November 2023: Various real estate agents and citizens have raised the request for the withdrawal of cess so that the stamp duty can be reduced. However, as per the latest update, the Maharashtra government is unlikely to withdraw the one percent metro cess applicable during the purchase of the property. As of October 2023, the Maharashtra government has raised more than Rs 3,000 crore via the collection of Metro cess that came into force in February 2019 in cities, namely Mumbai, Nagpur, Thane and Pune, to raise funds for infrastructure developments for the public.
A senior official working in the revenue department has updated that there are no such plans since these cities are still witnessing development. A decision related to reducing the stamp duty and ready reckoner rates is to be taken by March 2024 end. The citizens, along with realtors, are voicing their demand to remove the cess as it puts an increased burden on both.
October 2023: Maharashtra Government has earned around Rs 3,600 crore through revenue generated by metro cess (a one percent extra stamp duty on property registration). It was introduced in February 2019 in cities such as Mumbai, Pune, Nagpur and Thane. The decision was taken to procure funds for public infrastructure developments, including bridges, flyovers and metros. In March 2020, a decision to discontinue the cess was taken because of the financial distress spread by the COVID-19 pandemic. However, the cess was reintroduced in April 2022.
The cess is collected via the stamp duty registration of documents, such as sale deed, gift deed and property mortgage. The stamp duty was raised from five percent to six percent in Mumbai and six percent to seven percent in other cities in Maharashtra. An increase of one percent in stamp duty signified an increased burden of around Rs 50,000 crore on the homebuyers. The Mumbai Suburban District accounted for the maximum collection of metro cess of Rs 1,167 crore, where the count of registered documents was 98,034.
March 2023: The Maharashtra Budget 2023 has given the women homebuyers of the State a reason to rejoice. The one percent stamp duty rebate applicable to female homeowners continues to stay in effect for the Financial Year (FY) 2023-24.
As per the media reports, the sales momentum in the financial capital of India has not stopped yet. The stamp department registered over 8,500 property transactions during the month, 11 percent up from the previous year. Majority of these are residential properties of sizes ranging from 500-1,000 sq ft. Earlier, in July, around 11,000 property documents were stamped. This was the best July ever in terms of deed registration and stamp duty collection.
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