Jun 08, 2023

Stamp Duty & Registration Charges in Mumbai | Godrej Properties

by Godrej Properties Limited

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Home to Bollywood, Mumbai is a place of diversity and contrasts. From hustlers and dreamers to billionaires and superstars, you can come across people who belong to different walks of life in Mumbai. Mumbai has turned into a melting pot of different traditions and cultures that offer it its distinct charm. No wonder Mumbai makes for an attractive real estate investment destination for many. And buying a home in the city of dreams is an ambitious pursuit. 

However, one must consider all the additional charges that might be involved in purchasing a property, such as stamp duty and registration charges in Mumbai. These expenses can significantly impact the overall price of the property and should not be overlooked. 

So, if you are planning on buying property and are worried about stamp duty charges in Mumbai, here is a detailed guide that will help you make a lucrative deal: 

Stamp Duty in Mumbai

Stamp duty is the transactional tax for properties. Thus, for each property transaction, the buyer needs to pay a specific amount of tax to the state government. 

This is similar to what a government collects for sales tax and income tax and is charged on the present agreement value or market value, whichever is high.

According to Section 3 of the Indian Stamp Act 1899, stamp duty is a tax that has to be paid to the government entirely and in a timely manner. Failure to pay stamp duty can impose a penalty on the property owner. 

What is the Stamp Duty in Mumbai?

Stamp duty and registration charges in Mumbai are charged under the Maharashtra Stamp Act, which lays down the details regarding the amount of stamp duty that one needs to pay to the Maharashtra government while purchasing property. 

The current stamp duty in Mumbai varies depending on whether the buyer is male or female. For men, the stamp duty in Mumbai (urban area) is 6% of the market value of the property, while the stamp duty in Mumbai for females is slightly lower at 5% of the market value of the property. 

As for the Registration charges in Mumbai (urban area), for properties below Rs 30 lakh, the charge is fixed at 1% of the property value, while for properties above Rs 30 lakh, the registration charge is Rs 30,000. 

So, it is essential to know the stamp duty rates and registration charges in the city where you are planning to buy property, as it can help you plan and budget your investments wisely.

Stamp Duty and Registration Charges in Mumbai 2023

The latest stamp duty and registration charges in Mumbai 2023 offer relief to women homebuyers. The Maharashtra Budget in 2023 stated that women homebuyers would get a one percent stamp duty rebate, and this will stay in effect for the Financial Year (FY) 2023-24.

How Stamp Duty is Calculated in Mumbai?

Stamp duty and registration charges in Mumbai, are calculated on market value or ready reckoner rates. This can be done through manual calculation, or homebuyers in Mumbai can use a stamp duty calculator app to get an idea of how much the total cost of their new property might be. 

Area-Wise Stamp Duty in Mumbai

Other than the gender of the homebuyer, the area of the property plays a major role in determining the stamp duty in Mumbai

For areas within the limits of any municipal council/panchayat/cantonment of any region within the Mumbai Metropolitan Region Development Authority (MMRDA), the Stamp Duty rate for men is 4% of the market value of the property, while for women, it is 3% of the market value of the property. 

For areas within the limits of any gram panchayat, the Stamp Duty rate for men is 3% of the market value of the property, while for women, it is 2% of the market value of the property. 

However, the Registration charges for all these areas are fixed at 1% for all buyers.

How To Pay Stamp Duty Online in Mumbai?

To make the process simple, the state government has offered the provision of online payment of stamp duty. Home buyers can follow these steps to pay stamp duty quickly and conveniently: 

Buyers can visit the Maharashtra stamp and registration department website -https://gras.mahakosh.gov.in/igr/frmIndex.php and log in. 

After this, the buyers would be required to fill up some basic information regarding their property and its location.

Once the details are filled up, the buyer would have to choose their preferred payment method. The Maharashtra stamp and registration department website is linked with all prominent nationalized banks.

You can then choose your bank and complete the payment.

Factors Affecting Stamp Duty Charges in Mumbai

There are quite a few factors that can affect the amount of stamp duty as a property owner. Here is a list of all the factors that can influence your stamp duty rate in Mumbai:

  • Property owner's gender: Female homebuyers get a 1 percent rebate on stamp duty payment.
  • Property owner's age: Selected states offer a concession in stamp duty to senior citizens.
  • Property Location: For properties located in the municipal limits of an urban area, the stamp duty is higher as compared to those that are located outside.
  • Property type and its usage: Stamp duty on commercial properties such as shops and offices are usually higher as compared to residential ones. Moreover, the stamp duty charges vary between flats and independent houses.
  • Property amenities: Housing societies that offer a bunch of high-end facilities often attract higher stamp duty charges.
  • Property age: Old properties tend to attract less stamp duty charges.

 

Frequently Asked Questions     

1.What Is the Current Stamp Duty Rate in Mumbai?

Ans:The current stamp duty in Mumbai (urban area) for men is 6% of the market value of the property, while the stamp duty in Mumbai for females is 5% of the market value of the property.

2.Are Tax Benefits Applicable on Stamp Duty Payments in Mumbai?

Ans:Yes, According to Section 80C of the Income Tax Act 1961, expenses related to stamp duties and registration charges are eligible for a tax deduction. The maximum deduction limit is Rs. 1.5 lakh, which can be claimed during the year in which the actual payment of these expenses is made.

3.How And Where to Pay Stamp Duty and Registration Charges in Mumbai?

Ans:You can pay registration fees and stamp duty in Mumbai online and offline. 

4.Is GST Applicable on Stamp Duty?

Ans:No, GST (Goods and Services Tax) does not apply to the registration and stamp duty charges.

5.Can I Get a Refund of The Stamp Duty in Mumbai?

Ans:Yes, the owner of the property is eligible to get a refund of 98% of the amount paid by them as stamp duty. This is done when an application is sent for a refund of the stamp duty. Along with the application, the owner also needs to attach the original agreement and the original cancellation deed.

6.What Is the Flat Registration Process in Mumbai?

Ans:Flat registration charges in Mumbai must be done offline in the presence of two witnesses at the sub-registrar's office (SRO). The documents required for this process include the no-objection certificate (NOC) of the society, the original sale deed of the flat, the government-authorised PAN Card, the ID Card, and receipt of the payment of stamp duty. 

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