Purchasing a new property in the commercial capital of India is a steady process that involves quite a bit of unforeseen expenses. Registration charges and stamp duty in Mumbai are such expenditures. Before proceeding with their purchase plan, buyers must consider all the costs associated and to be paid during the property registration.
What is Stamp Duty?
Stamp duty is a type of tax charged by the State Government on the purchase of an immovable asset within India. However, as per Section 3 of the Indian Stamp Act, 1899, simply possessing a property does not guarantee legal ownership. The property has to be registered in the name of the owner.
Registration Charges and Stamp Duty in Mumbai
In August 2020, the State Government reduced stamp duty in Maharashtra on the purchase of property for a certain period. This was directed towards providing momentum to the housing sector.
The Govt. of Maharashtra had reduced stamp duty rates by 3% until 31st December 2020 and by 2% until 31st March 2021. The rates on property purchases were lowered from 5% to 2% till 31st December 2020.
The table below is a representative of the stamp duty rates over a specified period:
|Stamp Duty Rates till
31st December 2020
|Stamp Duty Rates between
1st January to 31st March 2021
|Stamp Duty after
31st March 2021
For men, women, and joint female owners, the standard rate for stamp duty in Mumbai is 6% now. It is determined based on the property’s registered price and ready reckoner rates. Whichever rate among the two is higher is to be considered while devising the stamp duty.
Registration charges and stamp duty in Maharashtra vary based on the property rate and ownership. Refer to the table for a detailed idea of area-wise stamp duty in Mumbai:
|Localities in Mumbai||Stamp Duty Rates (for men)||Stamp Duty Rates (for women)||Registration Charges|
|Within municipal limit of urban areas||5% of the market value of the property||4% of the market value of the property||1%|
In Mumbai, the ready reckoner rates for flat varies between Rs.42,000 and Rs.8,61,000 per Square Meter. The rates for residential land slightly vary, ranging from Rs.16,500 to Rs.4,75,500 per Square Meter.
The exact payable stamp duty is determined based on the following factors:
- Owner’s gender and age
- Property’s market value
- Type of property, including the number of floors
- Property location
- Intended use of the property – be it commercial or residential
How is Stamp Duty in Mumbai Calculated?
You already know that the stamp duty you will be paying depends on the value of the property and its reckoner rate. For instance, if a property is valued at Rs.75 lakhs as per agreement and the reckoner rate stands at Rs.79 lakhs, then the latter will be taken into account to evaluate the stamp duty. Besides, since the property is priced over Rs.30 lakhs, the buyer will need to pay a registration charge of Rs.30,000.
You can use an online stamp duty calculator to compute the registration charges and stamp duty. It is a user-friendly tool that gives you accurate, faster results. To get instant results, you will only need to access the calculator on your chosen lender’s website and enter your property details – its market value and name of the residing state/city.
Step-by-step Guide on How to Pay Stamp Duty in Maharashtra
The easiest way to pay stamp duty to the State Govt. is to go online. Simply access the Government Receipt Accounting System (GRAS) portal and provide all necessary personal and property details. Follow these steps for a seamless experience:
- Click on ‘Inspector General of Registration’ on the homepage. Registered users can proceed by providing their login details while non-registered/new users need to click on ‘Pay without Registration’.
- On selecting the ‘Pay without Registration’ option, you will be redirected to a new page. Select ‘Citizen’ and choose your transaction type.
- Next, make payment to get your documents registered. You may choose to pay for the registration charges and stamp duty separately or together.
- Whichever option you choose, enter the required details in the input field to proceed. This includes property and transaction details, sub-registrar’s office, district, etc.
- Select the payment mode and add your payment details to carry out the transaction. Once done, get your online receipt. This auto-generated document indicates that stamp duty has been paid successfully and must be furnished at the office of the sub-registrar at the time of registration.
Getting all information in place regarding registration charges and stamp duty in Mumbai is important for buyers looking to buy a property or apply for a home loan. Hope this article has proved helpful in this regard. If you have any further queries, reach out to an expert before taking any final decision.