CHANGES IN STAMP DUTY CHARGES IN MAHARASHTRA

REAL ESTATE UPDATE

16th May, 2022

Issue No. 02/22-23

CHANGES IN STAMP DUTY CHARGES IN MAHARASHTRA

The stamp duty charges levied under the Maharashtra Stamp Act, 1958 (“Act”) have been amended and updated as follows:

  1. The stamp duty in Mumbai, Thane, Navi Mumbai, Pune, Nagpur and Nashik on transaction of Sale, Mortgage and Gift Deed will attract a 1% metro cess from April 1, 2022.
  2. The Maharashtra Legislative Assembly have passed a bill which inter alia extends the set-off period for payment of stamp duty on resale of immovable property from one year to three years. Earlier, if the resale of immovable property took place within one year of purchase, the stamp duty payable would only be on the difference of the property rates calculated in the purchase price and the resale price, and not on the entire consideration amount when the property is resold. Now, with the passage of this bill, this one-year set-off period has now been extended to three years.
  3. Stamp duty and Registration charges for a female will be with a concession of 1% over the prevailing stamp duty on property transactions, if the registration of sale deed, is done in the name of women.
  4. The existing ceiling of stamp duty payable on an agreement relating to deposit of title deeds, pawn, pledge or hypothecation where the amount secured exceeds Rs. 5 lakhs, stamp duty has been amended to 0.3 % of the amount secured subject to a maximum of Rs. 20 lakhs.
  5. Stamp duty on mortgage under article 40(b) of schedule I of the Act, when possession is not given or agreed to be given and if the amount secured is less than Rs. 5 lakhs then the stamp duty shall be 0.1% of the amount secured subject to a minimum of Rs. 100. If the amount secured is more than Rs. 5 lakhs then the stamp duty shall be 0.3% of the amount secured subject to a maximum of Rs 20 lakhs. Provided that in case of instrument executed by consortium of banks, the duty chargeable shall not exceed 50 Lakhs.

 

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