What are the stamp duty and registration fees on real estate?

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What are the stamp duty and registration fees on real estate?

Feb 08, 2022
What are the stamp duty and registration fees on real estate?

The Maharashtra Stamp Act came in 1958 applies to all documents in Schedule 1 for which state collects stamp duty. The Bombay Stamp Act of 1958 is another name for it.

When a movable or immovable item changes hands, the buyer is required to pay stamp duty and registration charges to the state government to have it stamped and registered in legal records.

What does the Act entail?

The Act was recently updated, with changes including a revision of gift deed stamp duty.

The addition of e-payment of stamp duty, the modification of penalty clauses, and increased stamp duty under specific instrument terms.

The Maharashtra Stamp Act establishes which assets and instruments are subject to stamp duty payment to the state government.

According to the Act, effective from April 1, 2021, the Maharashtra government has resumed stamp duty rates.

Now the stamp duty rates for property registrations at 5% in Mumbai and 6% in the remainder of the state. In March 2021, the government announced a 1% stamp duty discount if a property is transferred only to a woman.

In Mumbai, all-female homeowners would have to pay 4% stamp duty. Joint owners are not eligible for this reimbursement.

  • The Maharashtra government opted not to prolong the waiver on stamp duty and registration expenses in Maharashtra beyond March 31, 2021, after announcing a stamp duty rate drop in August 2020. For 2021-22, the state has likewise left the ready reckoner rates untouched.
  • In its budget for 2021-22, the Maharashtra government has promised a 1% discount on the current stamp duty on property transactions if the transfer of residential property.

What is the basis for this stamp duty?

Pune, Mumbai, and other cities also affect the Maharashtra stamp duty rate, which results in some relief.

  1. Age of the buyer: If the property buyer is above the age of 65, there is a chance that they would be eligible for a stamp duty discount in Maharashtra.
  2. Gender: For female buyers of property in Maharashtra, there are times when stamp duty and registration rates in Maharashtra 2021 are pretty advantageous.
  3. Age of the property: In Maharashtra, if a person invests in an older property, he may be eligible for lower stamp duty. However, if the property is new, the stamp duty in Maharashtra is likely to be considerable.
  4. Residential properties in Pune and other regions of Maharashtra are subject to lower stamp duty than commercial properties.                                                                                                                                                                                                                                                                       What factors go into determining the stamp duty rate?               The higher the Ready Reckoner rate and the property value stipulated in the buyer-seller agreement are usually used to calculate stamp duty rates.

     In India, stamp duty rates differ from state to state. In Maharashtra, the stamp duty on real estate varies depending on whether the property is within the municipal corporation limits, municipal council limits, or gram panchayat limits, and there is a one percent registration fee.

What is the rate?

From April 1, 2021, onwards, inside the municipal bonds of any urban region, 5% of the property's market value. Hence, homebuyers pay stamp duty as a sort of property tax when they purchase a residence.

Like other Indian states, Maharashtra imposes stamp duty and registration fees on all assets, including freehold or leasehold, agricultural and non-agricultural land, independent homes or flats, and residential or commercial apartments.

The Maharashtra Stamp Duty Act of 1958 is in effect across Maharashtra. The Act imposes a stamp tax on real estate properties at a rate determined by the state government.

  • Stamp duty rates depend on many factors, including the market value and region of the property.
  • A commercial apartment has more amenities, floor area, and security systems than a residential unit; the stamp duty on business property are significantly greater.
  • Stamp duty on land purchase depends on the locality and jurisdiction. Therefore, if your property parcel is located in a municipal jurisdiction or an urban region; you must pay a higher stamp duty land tax. Similarly, the buyer will pay less than the metropolitan area; if the land is located within Panchayat boundaries.

How to pay it online?

Several state governments have implemented e-payment of stamp duty to simplify property registration procedures. The e-stamp registration service would allow home buyers to pay stamp duty, registration fees; and other fees online in only a few clicks.

The online stamp duty payment process is quick, easy, and transparent. To pay stamp duty on acquiring a home, purchasers must complete a few simple procedures.


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