Stamp duty in Maharashtra is the certain amount of tax that the Government of Maharashtra charges whenever any movable and immovable asset changes ownership. Homeowners are liable to pay this amount during registration of the property. The amount to be paid is dependent on the respective property’s market value.
The Stamp duty and registration charges are essential factors establishing ownership and acting as evidence against property sale or purchase.
What is the Maharashtra Stamp Act?
Maharashtra Stamp Act 1958 applies to types of instruments listed in schedule 1 and attracts stamp duty payable to the state. As per Maharashtra Stamp Act, all instruments are chargeable with Maharashtra stamp duty. The act basically specifies the amount to be paid to state authorities.
The government has reduced the stamp duty and registration charges in Maharashtra 2020 to a massive extent to boost the real estate sector. The Maharashtra Government has reduced the stamp duty rate by 1% if the property transfer or sale registration is done in a woman’s name.
Stamp duty and registration charges in Maharashtra 2021
Stamp duty and registration charges differ from one place to another and from time to time as per State Government’s decision.
After pandemic, the State Government has significantly reduced Maharashtra stamp duty rates up to 3%. The stamp rate was 3% from 1st Oct 2020 to 31st Dec 2020. Then from 1st Jan 2021 to 31st March 2021, the stamp duty rate was 4%. However, from 1st April 2021, the stamp duty rate resorts again to 6%.
Stamp duty is determined by property’s value or by the circle rate, whichever value is higher. In case of registration, Rs.30,000 is charged if the concerned property’s value is more than Rs.30 lakh, and 1% of the property value is charged for properties under Rs.30 lakh. For instance, individuals buying a property worth Rs.50 lakh should pay Rs.30,000 as a registration charge.
There is a clear saving of up to 1-2 lakh for home buyers if they purchase properties before 1st April 2021. Also, stamp duty rates for the year 2022 remain the same as 2021.
Parameters that affect the stamp duty in Maharashtra
The factors on which Maharashtra stamp duty rate is dependent are as follows:
- Owner’s age: If the house owner is a senior citizen, he is more likely to get a reduction on stamp duty.
- Gender: Women who own the property are likely to get a reduction on stamp duty.
- Type of property: Residential properties are charged less stamp duty than commercial properties.
- Property’s age: New properties are entitled to higher stamp duty than the older ones.
Besides the factors mentioned above, stamp duty depends on the ready reckoner rates or circle rate and the property’s value.
How to pay stamp duty in Maharashtra?
Individuals can check the following steps to pay stamp duty and registration charges online:
Step 1: Visit ‘Maharashtra Stamp Duty online Payment’ portal
Step 2: Log in with the necessary credentials.
Step 3: Click on ‘pay without registration’ and then select ‘citizen’ option and the type of transaction.
Step 4: Select ‘Make Payment to Register Your Document’.
Both stamp duty and registration charges add to the extra expenditure on the homebuyer’s part. Avail home loan acts as a respite as it will lower the monetary burden.
However, a borrower must know the factors affecting home loan eligibility before applying for a home loan, making the lending process permissive.
Furthermore, borrowers can check pre-approved offers extended by leading financiers to expedite the lending process. Pre-approved offers are available on financial products like home loans, loans against property etc.
It is important to note that a home loan doesn’t cover stamp duty and registration charges if a home loan borrower is wondering how much stamp duty and registration charges are levied on a home loan.
On the whole, Maharashtra Stamp Act 2021 mandates the payment of stamp duty in Maharashtra to legalise the ownership of a property.