Stamp Duty and Registration Charges in Mumbai

stamp duty and registration charges is mumbai.

You could plan to buy a home from a long time but while being the process, it might get tedious. It can at times make you feel drained both emotionally and financially. There are a ton of things that need to be considered from loan application to signing the agreement and after this registering the property under the respective name. And the purchaser needs to pay the stamp duty. Like every other state in India, Maharashtra also has its Mumbai stamp duty rates which should be taken into account before purchasing the property. But fret no more because we are here with a guide to stamp duty and registration fees in Mumbai.                                                           

Stamp Duty is a charge that one needs to pay as tax levied by the government on a transaction of immovable property. The stamp duty rates can be different for a different state, but it is also computed on the basis of the market value of the property. Recently, the Maharashtra government has revised the  stamp duty rates in Mumbai. In this piece further, we will be covering all that you need to know about stamp duty registration charges in Mumbai.

About the Maharashtra Stamp Duty Act

To conquer the issues related to stamp duty in Maharashtra, the Maharashtra Stamp Duty Act was given a green flag in the year 1958. In this act, every instrument is covered which is mentioned in Schedule 1 of the Maharashtra Stamp Duty Act. One should know that the stamp duty is only chargeable on the instrument or the document and not on the transaction. Not only this, but the Mumbai stamp duty rates are also dependant on aspects of whether the property is in rural or urban areas.

Stamp Duty on Property in Mumbai and other Nearby Areas

In the year 2020, when real estate suffered a setback, the Maharashtra government decided to reduce the stamp duty rates on commercially operated properties. It was in august 2020 that the government announced the reduction in stamp duty for three months. The slashed Mumbai stamp duty rates were 2% which were earlier 5% from September to December. And, from January 1,2021 people had to pay a stamp duty of 3%. The decision turned out to be fruitful in the beginning.

The Maharashtra government further announced to not carry forward the reduction in March 2021. People had to pay the earlier stamp duty rates which was 5% from April 2021. Thus, the current stamp duty in Maharashtra is 5% of the property’s market value. Additionally, a 1% rebate was announced for female purchasers on 8th March 2021. In this context, if the property is registered under a woman’s name in Mumbai, there will be a 4% stamp duty levied on it, but this rebate is not applicable toa co-ownership.

Name of CitiesMumbaiPuneThaneNavi MumbaiPimpri-ChinchwadNagpur
Rates applicable from April 1, 20215%6%6%6%6%6%
Rates applicable from April 1, 2021 for females4%5%5%5%5%5%
Rates from September 2020 to December 20202%3%3%3%3%3%
Rates from January 2021 to 31st March 20213%4%4%4%4%4%

About the Property Registration Charges in Mumbai and Nearby Areas

When a purchaser registers a property in his/her, the government levies a tax which is to be paid by the purchaser known as the plot registration charges in Mumbai, house registration charges, or flat registration charges. This charge is varying from state to state. Usually, the charge is kept at 1% of the market rate of the property but in some states, it can also be fixed. For instance, the Maharashtra government has a set registration charge for every property whose market value is over ₹30 lakhs.

Name of CitiesMumbaiPuneThaneNavi MumbaiPimpri-ChinchwadNagpur
For properties over ₹30 lakhs₹30,000₹30,000₹30,000₹30,000₹30,000₹30,000
For properties less than ₹30 lakhs1% of the value1% of the value1% of the value1% of the value1% of the value1% of the value

What are the Determining Factors of the Stamp Duty Registration Charges in Mumbai?

The charge of stamp duty and registration is unskippable and one has to pay these while purchasing any property be it a commercial, residential property, land or a flat. And Maharashtra government is no exception. It also levies the stamp duty and registration charges for transferring property. Mumbai stamp duty rates are dependant on many keys like the location of property, the type of property, and the market value of the property.

Type of property: If you think a specific kind of property is spared from stamp duty and registration charges then you are wrong. One needs to pay the stamp duty for every kind of property that is purchased in Mumbai. But the charges are different pertaining to different kinds of property. For instance, in a commercial property the amenities are more than a residential property. Thus, the charges are more a commercial property in comparison to a residential one.

The location: Another thing that determines the stamp duty is the jurisdiction or the locality of the property. The urban areas have higher stamp duty rates in comparison to the rural areas because the urban areas come under the municipality and the rural areas come under the Panchayat.

Market Rate: While determining the stamp duty charge and house registration charges in Mumbai,  the market value of the property is also taken into consideration.

The years of a property: The market value determines the stamp duty cut and older properties tend to have less market rate. Hence, the stamp duty is less for older buildings.

Gender of the purchaser: In India, female purchasers of property have  to pay a little less stamp duty in comparison to male property buyers.

Stamp Duty Charges in Other States

StateStamp Duty Charges
MaharashtraStamp Duty in Maharashtra
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
Madhya PradeshStamp Duty in Madhya Pradesh
GurgaonStamp Duty in Gurgaon
PuneStamp Duty in Pune

Present Stamp Duty Value of Property in Mumbai

  • For urban areas falling under a municipality, the stamp duty rate is 5% of the total market rate of the property.
  • For areas falling under panchayats, municipal councils, and cantonments under the MMRDA, the stamp duty rate is 4% of the total market value.
  • For areas falling under the Gram Panchayat limits, the stamp duty rate is 3% of the market value.

Calculation of Stamp Duty in Mumbai

For calculating the stamp duty in Maharashtra, the total property value and Ready Reckoner rate Mumbai is taken into account. The ready reckoner rate Mumbai is fixed by the Maharashtra government which is the minimum price below which a person cannot do any transaction on the property. So, for instance, if a flat in Worli has a market value of ₹7,50,00,000, the stamp duty will be 5% of ₹7,50,00,000 which is ₹37,50,000.

Online Payment of Stamp Duty in Mumbai

  • Go to the official website of the Maharashtra Government Department of Registration and Stamps

IGR-Maharashtra website

  • If you have already registered, log-in using the existing credentials

IGR-Maharashtra login

  • If you have not registered, select the option of ‘Pay without Registration’
  • After this, you will be redirected to a different page. Choose the option of ‘Citizen’ and then click on the type of transaction for proceeding

IGR-Maharashtra citizen

IGR-Maharashtra citizen

  • Select ‘Make Payment to Register Your Document.’ Fill in all the details correctly and pay your registration and stamp duty charges.
  • Select the option of payment and keep the challan handy for the  future. When you are in the process of executing the instruments, this challan will be required.

You should be careful while purchasing a property because these stamp duty rates can add a lot to your budget.

Stamp Duty and Registration Charges for Resale Flat in Mumbai   

Even if the project is resalable, you will have to pay the stamp duty and flat registration charges in Mumbai and these charges are determined as per the Maharashtra Stamp Duty Act, 1958. From 1st April 2021, for urban areas, the stamp duty on resalable properties will be 5% of the total market value of the property. The charges of registration for properties with a value less than ₹30 lakhs is ₹30,000 and for properties with a value above ₹30 lakhs, it is 1% of the property’s market value.

Stamp Duty Refund Process in Mumbai                        

  • A citizen can fill the application for a stamp duty refund online.
  • The required documents need to be submitted to the Collector of Stamps Office
  • The collector will further handle the case of refund
  • When you submit the refund application, you will get a Refund Code on the acknowledgment form which can be used for checking the status of the Stamp Duty Refund

FAQ's about Stamp Duty in Mumbai

What are the stamp duty and registration charges in Mumbai presently?

For females, stamp duty is 4% of the property’s market value and for males, it is 5%.

Was stamp duty reduced in Mumbai?

After the pandemic, the stamp duty in Mumbai was reduced to 2% till 31st December 2020.

Was stamp duty reduced in Mumbai?

After the pandemic, the stamp duty in Mumbai was reduced to 2% till 31st December 2020.

Can you get a refund for Stamp Duty?

Yes.

Is it necessary to pay the stamp duty?

Yes, it is a necessary payment.

Can stamp duty be paid online?

Yes, the stamp duty can be paid online.