RELIEF ON STAMP DUTY CHARGES BY MAHARASHTRA GOVERNMENT

In its debut budget, the Maharashtra government declared plans for tax concessions. This includes a 1 percent slash of stamp duty and other registration charges of documents in Maharashtra and areas falling under the Mumbai Metropolitan Region Development Authority (MMRDA) and municipal corporations of Pune, Pimpri-Chinchwad, and Nagpur or the next two years.

With this announcement, stamp duty in Maharashtra, Pune, and Nagpur, properties will be chargeable at five percent i.e. four percent Stamp Duty + 1 percent Metro cess.

Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, said the concession in stamp duty will help promote the real estate sector in the wake of the slowdown. 

WHAT IS A STAMP DUTY?

Possession is a physical transfer of property that is not adequate. You require legal ownership. One needs to pay stamp duty at the time of sale. This becomes a government tax for property transactions. It is paid on the basis of the value of the property at the time of registration. The amount of stamp duty varies from state to state and also the form of property — old or fresh.

Stamp duty is the legitimate tax payable in full and serves as evidence of any selling or purchase of land. It becomes a state subject and thus the stamp duty rate varies from state to state. The Centre shall levy stamp duty on the stated instruments and shall also set the rates for those instruments.

It shall be payable before the execution of the document or on the date of execution. It can also be on the next working day of the execution of the document. The penalty is also levied for non-payment of stamp duty on time.

CALCULATION OF STAMP DUTY IN MAHARASHTRA:

The rates typically rely on the higher value between the government-approved rate and the value of the property specified in the purchaser-seller agreement.

The stamp duty in Maharashtra varies within the State If the property falls within the boundaries of the municipal corporation, the municipal council and the gram panchayat 5 percent stamp duty is charged and an additional 1% registration fee.

STAMP DUTY AND REGISTRATION CHARGES IN MAHARASHTRA:

  1. Within municipal limits of urban area: 5 percent of the market value of property + 1 percent registration charge.
  2. Under the limits of any Municipal Council/Panchayat/Cantonment of any area within MMRDA: 4 percent of the market value of property + 1 percent registration charge.
  3. Within the limits of any Gram Panchayat: 3% of the market value of property + 1 percent registration charge.

CALCULATOR:

Stamp duty calculators determine the amount of stamp duty to be paid by an assessee. stamp duty calculator is also designed to help you accurately assess the amount of stamp duty you will have to pay towards your property so that you know exactly how much home loan you need. 

These charges can be claimed as tax deductions under section 80C of income tax act up to a maximum limit of Rs. 1,50,000. A stamp duty calculator can also be useful in determining the amount you can get through income tax returns.

HOW TO PAY STAMP DUTY IN MAHARASHTRA?

To simplify the process of registration of ownership, a number of state governments have introduced an e-payment of stamp duty.

E-stamp registration facility will help buyers pay stamp duty, registration fee or any other charges online with a few taps. The electronic stamp duty payment process is time-efficient, simple and straightforward.

In Mumbai, Maharashtra payment of stamp duty and registration fee to the department of registration and stamps can be done through the government receipt accounting system (GRAS) of the government of Maharashtra.

  1. Users need to provide their PAN of both the parties and all the details of the property in the GRAS portal.
  2. E-payment, as well as payment across bank counter i.e. cash or cheque, can be made using the website. 
  3. You will have the option to pay stamp duty or stamp duty and registration fees together.
  4. Click on the selection of your choice. The portal will ask to fill in the details under which you want to register your document. Property value and so on.
  5. Once all the requisite details are thorough, you need to choose the payment gateway. The portal has a connection with all major nationalized banks.