MAHARASHTRA STAMP DUTY AMENDMENT

REAL ESTATE UPDATE

16th August 2024

Issue No. 14/24-25

MAHARASHTRA STAMP DUTY AMENDMENT

The Government of Maharashtra has issued amendments to the Maharashtra Stamp Act, 1958 (“Stamp Act”), vide Notification RNI No. MAHBIL/2009/35530, dated July 31, 2024. This amendment has also been published in the Maharashtra Government Gazette on 31 July 2024. The amendments are summarized below:

 Section 39:

Under Section 39 of the Stamp Act, for instruments impound under Section 33, the Collector had power to impose penalty of an amount equal to 2% of the deficient portion of the stamp duty for every month from the date of execution of the instrument.

Now this power has been extended to even to registered instruments impounded under Section 33A. However, in the case of registered instruments, the penalty shall be 1% of the deficient portion of the stamp duty for every month from the date of execution of the instrument.

  1. Section 48:

Under Section 47, application can be made to the Collector for allowance/refund in the case of spoiled stamps. As per Section 48, such application for relief had to be made within a period of 6 months of the date of the instrument. As per the Amendment this period has been extended from 6 months to 1 year.

  1. Section 50:

Under Section 50, if someone has mistakenly used the wrong type of stamp, a stamp that’s worth more than necessary, or any stamp on a document that doesn’t need one, or if the stamp is used in violation of the rules, if the instrument is re-stamped, they can apply to the Collector for allowance of such misused or rendered useless stamps on the grounds that the stamps are spoiled. Such application had to be made within 6 months after the date of the instrument. As per this Amendment, this period for making an application to the Collector has been extended to 1 year.

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