There has been a fair number of changes regarding the stamp duty payable on immovable property in Maharashtra. It necessitates buyers in the state to understand the concept of stamp duty and how these changes affect them.
When you buy property, say a 1 BHK in Mulund, in Maharashtra, you are liable to pay stamp duty to the state government. Some amendments to the Act have been made that include a revision of the stamp duty payable on gift deeds and options for increased payment. In certain cases, the stamp duty has been increased, the penalties have been revised, and it is now also possible to pay the stamp duty electronically.
The government of Maharashtra reduced the stamp duty in August 2020. The reduction of 3% was applicable for the period September 1, 2020, to December 31, while 2% was allowable for the period January 1, 2021, to March 31, 2021, after which the reduction is no longer applicable. The state budget for the financial year 2021-22, however, included a reduction of 1% in the current rate of stamp duty if the property was transferred or the sale deed registered in favor of a woman. However, if there is a male joint owner, the rebate does not apply.
Typically, stamp duty in Maharashtra on all properties, including a 1 BHK in Mulund east, is calculated on the higher of the amount specified by the Ready Reckoner followed by the state government and the value of the property recorded in the agreement for sale. Some of the criteria impacting the rate of the stamp duty in Maharashtra include whether the property is in an urban or rural area, whether it falls within the limits of a municipal corporation, municipal council, or gram panchayat, the cost of the transaction, etc. If the property is within the limits of any municipal corporation, the rate applicable is 5%. If it falls within the limits of a council, panchayat, or cantonment in any area where the MMRD has jurisdiction, the rate is 4%. Properties located in gram panchayat areas invite stamp duty at the rate of 3% of the market value. Accordingly, buyers of 1 BHK flats in cities like Mumbai, Pune, Nagpur, etc. have to pay at the rate of 5%. All over Maharashtra, the property registration charges are one percent of the cost of the property if the value is less than 30 lakhs, but for costlier properties, there is a cap of Rs. 30,000.
According to Article 34 of the Maharashtra Stamp Act, stamp duty applicable on a gift deed is equivalent to 3% of the property’s value. However, stamp duty is limited to Rs. 200 only if the property is either residential or agricultural and is a gift without any payment to a family member.
If the deed of sale of a 1 BHK in Mulund east for sale is executed in Maharashtra, the stamp duty can be paid before or at any time during its execution. However, the law also permits it to be paid the day after the deed was executed. For property sales administered out of the country, the stamp duty can be paid within three months. Other things to keep in mind are ensuring that stamp paper must be in the name of one of the parties to the agreement and not the accountant or lawyer representing them and that the date of issue is not more than six months earlier than the date of the transaction.