Stamp Duty and Registration Charges in Maharashtra

Stamp Duty and Registration Charges in Maharashtra

Stamp duty is a prominent constituent in the overall cost of purchase of any land or property. The buyer has to make certain tax payments upon getting their hands on any property. This tax is payable to the state government by which it also has to get stamped. Maharashtra, like other states, exercises stamp duty charges as per the Maharashtra Stamp Act that is paid to the state government. Let us unlayer this section and understand the stamp duty and registration charges in Maharashtra

Maharashtra Stamp Act

The Maharashtra Stamp Act, which was passed in 1958, implies the payment of stamp duty rates to the state. The payable duty is applicable to all the movable and immovable possessions mentioned in Schedule 1 in the act. It has not been a long time since this act underwent the alterations which brought the light upon the insertion of penalty clauses, stamp duty e-payment, increment of duty as per certain clauses and revised stamp duty on gift deeds. 

Maharashtra Stamp Duty Registration Charges

Stamp duty and registration fees in Maharashtra state are determined by various factors. Such factors include determinants such as total cost incurred for the transaction, whether the location of the property comes within urban or rural areas etc. 

CityApplicable Stamp Duty RatesApplicable Stamp Duty Rates from September 1, 2020 to December 31, 2020Applicable Stamp Duty Rates from January 1, 2021 till March 31, 2021
Mumbai5% (with 1% metro cess inclusive)2%3%
Pune6% (with local body tax & transport surcharge inclusive)3%4%
Thane6% (with local body tax & transport surcharge inclusive)3%4%
Navi Mumbai6% (with local body tax & transport surcharge inclusive)3%4%
Pimpri-Chinchwad6% (with local body tax & transport surcharge inclusive)3%4%
Nagpur6% (with local body tax & transport surcharge inclusive)3%4%

Stamp Duty Property Registration Charges in Maharashtra

When it comes to the plot registration charges in Maharashtra, there is 1% of the total cost chargeable amount for the properties that are priced under the Rs 30 lakhs slab. It is capped to Rs 30,000 for properties that are priced more than Rs 30 lakhs.

Stamp Duty Charges in Mumbai

AreaStamp duty Rates in Mumbai
Within the municipal territory of any urban area5% of the market value
Within the realm of any municipal council/ panchayat or cantonment of an area that comes within MMRDA4% of the market value
Within any gram panchayat territory3% of the market value

Stamp Duty in Maharashtra on Conveyance Deed

Apart from rates and flat registration charges and house registration charges in Maharastra, here is the all about the conveyance deed which you must be aware of-

Conveyance DeedStamp Duty Rate
Gift deed3% 
Gift deed for residential or agricultural property that has been passed on to individual’s family membersRs 200
Power of attorney3% for properties that are located in gram panchayat areas and 5% for properties that are located in municipal areas.
Lease deed 5%

As per the Article 34 of the Maharashtra Stamp Act, amended in 2017, 3% of the property’s value is applicable as stamp duty on gift deeds. However, in case the property under consideration is of residential or agricultural property type and is also gifted (without involvement of any payment) to members of the family, then the applicable stamp duty is Rs 200.

How is Maharashtra Stamp Duty On Property Calculated

The Maharashtra Stamp duty calculation is practised on the ground of the ready reckoner rate in Maharashtra. Here, the property value is highlighted in the buyer and seller agreement. It should also be noted that the stamp duty of property depends on its location. To see it with an instance, the property that is located in the municipal realm of an urban area will feature 5% of the current market value. On the other hand, the one located within the proximity of any gram panchayat bears 3% of the current market value as stamp duty. 

Payment of Stamp Duty Maharashtra

The Maharashtra Stamp Act maintains that all the instruments that are chargeable with stamp duty and exercised in the state have to get stamped during or before the time of execution. They can also be executed during the next day following the date of execution. Note, it can get stamped within the period of three months from the date of receipt in case the execution of the deed has been performed beyond the territorial limits. 

It should be noted that the stamp papers have to be executed in the name of any one of the parties. The papers in the name of the lawyer or chartered accountant of either party are not treated as acceptable. The stamp papers must be in the name of one of the parties to the transaction and not in the name of the chartered accountant or lawyer of the parties. 

Apart from that, the date of issue for the stamp paper should not go more than the transaction date. Also, one can pay the stamp duty charges in a way of impressed or adhesive stamps in the deed. Stamp duty charges can be paid by way of adhesive or impressed stamps on the deed among which the adhesive stamp is cancelled during the execution meaning that it can not be used again in future.

Stamp Duty Charges in Other States

StateStamp Duty Charges
Madhya PradeshStamp Duty in Madhya Pradesh
GujaratStamp Duty in Gujarat
Uttar PradeshStamp Duty in Uttar Pradesh
West BengalStamp Duty in West Bengal
DelhiStamp Duty in Delhi
HaryanaStamp Duty in Haryana
RajasthanStamp Duty in Rajasthan
MumbaiStamp Duty in Mumbai
GurgaonStamp Duty in Gurgaon
PuneStamp Duty in Pune

Maharashtra Stamp Duty Payment Online

The revision in the Maharashtra Stamp Act deployed the online payment of stamp duty. How to pay Maharashtra stamp duty online? Here, you will find all the steps to be followed in order to make a successful online stamp duty payment in Maharashtra-

Step 1- First of all, you have to hop to the Maharashtra Stamp Duty online portal. 

gras website

Step 2- Then, tap the “Pay Without Registration” option. This step is for you in case you haven’t registered yourself on the portal already. Fill in the login information if you have come as a registered user.

gras pay without registration

Step 3- In case you have chosen the “Pay Without Registration” option, you will land on the new page where you will have to select the “Citizen” option.  

Step 4- After that, you need to choose the type of transaction you would like to make.  

Step 5- In the next step, you will choose the “Make Payment to Register your Document” option. Then you can move on to the payment of stamp duty and registration charges. 

Step 6- You can now fill in the required details including sub-registrar’s office, district, party details, payment details, property and property value details.

Step 7-  Select the payment option. Once you have done that, you can generate the challan. This challan will be presented during the execution of the deed.

gras challan

How to Get Refund on Maharashtra Stamp Duty

The process for a refund on the stamp duty value of property is a question of concern across all the states. Know that the stamp duty refund is applied upon meeting certain conditions. 

Here are the different types of conditions on which you can get the Maharashtra stamp duty refund- 

  • The stamp duty paper is not ideal for use because of writing errors.
  • The stamp paper is not signed and complete. 
  • The stamp paper is partly filled with information. 
  • The stamp paper is signed but the party found the translation on it illegal according to Section 31 of the Specific Relief Act. 
  • The court has found the given transaction illegal as per Section 31 of the Specific Relief Act.
  • The person who is needed to sign has refused to do so or died before that. 
  • Any party does not meet the compliances in terms and conditions. 
  • Any party denies singing the stamp paper. 
  • The value as per the stamp for the documents has been found insufficient and another stamp paper has been used to complete the transaction. 
  • The stamp paper is ruined and both parties have incorporated a new stamp paper document to perform the purpose.

Maharashtra Stamp Duty Adjudication

Adjudication of stamp duty refers to adjudging the amount of stamp duty that has to be paid for the registration of a specific document. The government provides services related to the adjudication of the stamp duty in order to determine the stamp duty that is to be payable. In these services, the government officer inspects the documents which helps him determine how much amount should be paid in the face of stamp duty. 

Adjudication of Stamp duty in Maharashtra is administered under the following laws-

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

As per the Article 31 of Maharashtra Stamp Act, a fee of Rs. 100 is payable under adjudication. The fees can be paid at the counter at the Stamp Office.

How Stamp Duty Maharashtra Has Impacted Property Registration?

Stamp duty collection in Maharashtra was impacted with many ups and down after April 2020. Property registrations witnessed a sink of 50%  in April if compared to registrations that took place in the month of March. This downfall began to appear after the state government restored the 5% stamp duty rate effectively from 1 April 2021. As per the data by the state government, Mumbai faced a record-breaking hike with 2.13 lakhs registration before the sanctions were about to be lifted. 

Official announcement in respect to the cut of stamp duty rates has faced a spike in the sale, especially in Mumbai that comes from the group of the most expensive cities in India. There were a number of Bollywood A-listers including Hrithik Roshan who were spotted buying properties. From the month of September 1 to October 2020, 25 registration offices welcomed registration for many luxurious properties that were worth 2200 crores.

Latest Updates on Maharashtra Stamp Duty and Registration Charges

As per recent judgements on Maharashtra stamp duty, the Maharashtra government had been directed by the Bombay High Court to refund excess stamp duty amount. The same has to be done within the period of four weeks starting from the date of receipt for the application. Upon failing to do so, the court also introduced a penalty of interest at 12% rate per annum.

Stamp Duty Value of Property and House/Flat Registration Charges- Final Words

It is up to the whereabouts of your property that determines the actual cost of stamp duty and registration in Maharashtra or anywhere for that sake. You can try your bit and lower your expenses on these charges, perhaps negotiating rates with the deed writer and talking the legal fees out.

FAQ's about Stamp Duty in Maharashtra

Q1. What are registration charges in Maharashtra?

The registration charges in Maharashtra cost 1% of the total cost incurred by the purchase of a property or land. This rate falls under the Rs 30 lakhs slab and the rate is capped at Rs 30,000 for all the properties that cost beyond Rs 30 lakhs.

Q2. How is Maharashtra stamp duty calculated?

The Mumbai stamp duty rates depend on the area or region the property falls within. The property value is always mentioned in the buyer-seller agreement.  The property situated in the municipal limits of the urban area will cost 5% of the market value while any property located inside the proximity of a gram panchayat costs 3% of the market value for stamp duty.

Q3. How can I reduce property registration charges?

You can try to have some relief with the property registration charges by making negotiations in rates with the deed writer, agreeing to pay for the stamp papers and negotiating legal charges.

Q4. Can I get a refund on Maharashtra stamp duty?

You can claim a refund for the stamp duty if the property deal gets cancelled. Know that there are certain terms and conditions which you should meet in order to get the refund. Besides that, the government also deducts about 1% of the charges. Also know that you need to raise the claim for refund within 6 months from the date of property registration.