Stamp Duty & Registration Charges in Maharashtra | Kotak Mahindra Bank

25 JUNE, 2021

Stamp duty is a tax that all state governments, including Maharashtra, levy on the transfer of a property where the asset’s ownership moves from the seller to the buyer’s name. As the State government charges this fee, the stamp duty applicable on a property varies from one State to another. The tax you must pay is a set percentage of the registered property’s value, but it also depends on some other factors.

On paying the stamp duty, you get the documents stamped, thus, making them legally valid and approved by the authorities. Apart from this, you must also pay the property registration charges in Maharashtra, over and above the stamp duty, to have the real estate registered in your name.

How is stamp duty in Maharashtra calculated?

Stamp duty charges can vary based on numerous aspects such as the location of the property, age and gender of the buyer, type of the property, its usage, etc. But usually, the tax depends on the ready reckoner rates and the market price of your property.

Here, the ready reckoner rate, also known as circle rate, is the standard price that the State government sets for accurate valuation of real estate. So, the rate that is highest between the ready reckoner rate and the market value of the property will be considered as the stamp duty. Find out the stamp duty charges in Maharashtra for several cities below:

 

Cities

Stamp Duty Charges

Registration Charges

Mumbai

5%

1%

Thane

6% (including 1% Local Body Tax)

1%

Navi Mumbai

6% (including 1% Local Body Tax)

1%

Pune

6% (including 1% Local Body Tax)

1%

Nagpur

6% (including 1% Local Body Tax)

1%

Pimpri-Chinchwad

6% (including 1% Local Body Tax)

1%

 

However, one thing you must remember is that women buyers can avail a lower stamp duty rate of 4% in Maharashtra.

How to Pay Stamp Duty in Maharashtra?

There are three methods of paying stamp duty charges in Maharashtra - paper-based method, online mode and franking. For the paper-based method, you need to purchase non-judicial stamp papers from an authorised seller. Paying stamp duty through franking can be completed by visiting a franking centre or a bank. To complete the payment of stamp duty in Maharashtra from the comfort of your home, you can follow the below-mentioned steps:

  • Visit the official website for stamp duty payment (https://gras.mahakosh.gov.in/igr/frmIndex.php)
  • Click on ‘Pay Without Registration’ if you haven’t registered with the portal. Or else, you can enter your credentials to log in.
  • Now click on ‘Citizen’ and the ‘Make Payment to Register Your Document’ option
  • You can choose between paying for only stamp duty or both stamp duty and registration charges from the two available options
  • Input the correct details required in the form and make payment to generate challan
  • You have successfully paid the stamp duty charges in Maharashtra online

 

Property registration process in Maharashtra

  • Log on to the official property registration website of the state government. [https://registeringproperty.mahabhumi.gov.in/]
  • Apply for the Encumbrance Certificate with the registrar and seek an appointment with the sub-registrar.
  • Once you complete the process online, you will need to visit the sub-registrar’s office to complete the formalities
  • Confirm the date of registration.
  • Prepare the stamp paper documents for registering the property as per the value decided by all parties
  • On the date scheduled with the sub-registrar, make sure that the seller, buyer, and the witnesses are present at the office
  • Show your IDs at the office along with the demand draft for the amount that the seller has to receive
  • After the details have been verified, the sub-registrar will authorize the registration of property.
  • All you have to do is sign on the documents in the advised places to complete the process.

 

Frequently Asked Questions (FAQs)

 

Why must you pay stamp duty charges on transaction documents?

A transaction document is a proof of an agreement between two parties related to a transaction. In the case of property in Maharashtra, it is often a sale deed. By paying for stamp duty, you legalise the transaction documents, which in turn makes your claim on the property or asset legally valid. Thus, you can produce these papers in the Court of Law in case of any dispute.

Can you get a refund of the stamp duty charges in Maharashtra?

Yes, the Maharashtra government allows you to claim a refund with a few deductions. With the refund application, you must attach the original agreement and the cancellation deed.

Can you get a refund of the property registration charges in Maharashtra?

Registration charges are non-refundable and thus, you cannot get the paid amount back in case the property deal gets cancelled.

Are stamp duty and registration charges tax deductible?

Yes, you can claim the stamp duty and registration charges as a deduction under Section 80C of the Income Tax Act.

 

Therefore, ensure that you consider the stamp duty and registration charges before buying a house in Maharashtra with home loan as they form a significant part of the overall cost of the house.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.