by one stop realty 
Undestanding Maharashtra Stamp Act
At any point, if any movable or immovable resource/asset changes ownership, to get it stamped or legalized – a specific amount of tax has to be paid to the state government, which is known as stamp duty. The Maharashtra Stamp Act states such resources and assets on which the stamp obligation must be paid to the state government. The Act additionally specifies the measure of the amount that is to be paid to the state authorities.
It is an indirect tax collected by the State Government in Maharashtra. Stamp Duty is payable under Section 3 of The Maharashtra Stamp Act. The amount of Stamp Duty payable depends on type of documents. The Stamp Duty is calculated as per Schedule-I of The Maharashtra Stamp Act. Stamp Duty is a statutory payment like Vat or Service Tax which needs to be paid on all instruments chargeable to duty. Further it has to be paid on time to avoid penalty. Insufficiently stamped documents are not admitted as evidence in the court.
The Bombay Stamp Act: A Cornerstone of Revenue Collection in Maharashtra
The Bombay Stamp Act, enacted in 1958, is a pivotal legal framework that governs the collection of stamp duties on document-based transactions within Maharashtra. Originally applied to the greater Bombay region, this act became an integral part of Maharashtra’s legislative environment following the state’s formation in 1960.
This Act mandates the payment of stamp duty, which is essentially a form of tax, on various documents including transfer deeds, agreements, certificates, bonds, and leases. The primary purpose of this duty is to confer legal authenticity to these documents while generating revenue for state administrative functions.
Over the years, the Bombay Stamp Act has been amended multiple times to respond to the dynamic economic conditions and real estate market of Maharashtra. These amendments ensure that the stamp duty rates are adjusted and practices streamlined to enhance compliance and minimise evasion.
The implementation of this Act is crucial for the state as it not only secures revenue but also supports the maintenance of a robust legal documentation system, which is fundamental to the functioning of both governmental and private sector transactions.
Latest Maharashtra Stamp Act
The Maharashtra Stamp Act latest involves several important changes and continuations of previous policies as of 2024:
- Stamp Duty Concession for Women: Maharashtra continues to offer a 1% stamp duty concession for women purchasing residential property. This initiative aims to encourage property ownership among women. The earlier 15-year lock-in period that restricted the resale of these properties to men has been abolished as of May 31, 2023 (Housing).
- Stamp Duty Rates: Standard stamp duty rates have been restored to 5% in Mumbai after a temporary reduction during the pandemic. These rates apply from April 2021 onwards, with specific concessions for certain types of properties and transactions.
- Amnesty Scheme: The Maharashtra government has extended the Stamp Duty Amnesty Scheme until June 30, 2024. This scheme provides relief for properties that had incomplete or missing stamp duty payments dating back to 1980. The extension allows property owners to regularise documents with waived penalties under specified conditions.
Maharashtra Stamp Act 2015
On 24 April 2015, the original Maharashtra Stamp Act 1958 received the affirmation for it to be called the Maharashtra Stamp Act 2015. There were a few changes made to the Act – the stamp duty rate of certain instruments under Schedule 1 was increased. Therefore, the Maharashtra Stamp Amendment Act 2015 first came into order.
Understanding the Stamp Duty Rates in Maharashtra
The stamp duty rates in Maharashtra are among the highest in India, and they vary depending on the location and type of transaction. For example, the stamp duty rates for residential properties are different from those for commercial properties. Here are the current stamp duty rates in Maharashtra for different types of transactions:
Sale Deed: 5 percent
Gift Deed: 2 percent
Lease Deed: 0.25 percent of the lease amount
Mortgage Deed: 0.1 percent of the mortgage amount
Leave and License Agreement: 0.25 percent of the license fee or security deposit, whichever is higher
How is the stamp duty rate calculated in Mumbai?
Properties in Mumbai
Societies in Mumbai
Stamp duty rates are usually calculated on the Ready Reckoner rate. Stamp duty charges in India vary from State to State. In Maharashtra, the stamp duty on the property varies within the State if the real estate property falls within the municipal corporation limits, municipal council, and gram panchayat, while one percent is charged as registration fee.
For example:
Mr X buys a 1,000 sq ft property within the municipal limits of Mumbai. The RR Rate of the locality is Rs 5,000 sq ft. The stamp duty calculation will look like this:
Property value as per RR Rate: Rs 50 lakh
Stamp duty: 6 percent
Stamp duty payable: 6% of Rs 50 lakh = Rs 3 lakh
Registration charges: 1% of Rs 50 lakh = Rs 50,000
Understanding the Stamp Duty Rates in Maharashtra
The stamp duty rates in Maharashtra are among the highest in India, and they vary depending on the location and type of transaction. For example, the stamp duty rates for residential properties are different from those for commercial properties. Here are the current stamp duty rates in Maharashtra for different types of transactions:
Sale Deed: 5 percent
Gift Deed: 2 percent
Lease Deed: 0.25 percent of the lease amount
Mortgage Deed: 0.1 percent of the mortgage amount
Leave and License Agreement: 0.25 percent of the license fee or security deposit, whichever is higher
How is the stamp duty rate calculated in Mumbai?
Properties in Mumbai
Societies in Mumbai
Stamp duty rates are usually calculated on the Ready Reckoner rate. Stamp duty charges in India vary from State to State. In Maharashtra, the stamp duty on the property varies within the State if the real estate property falls within the municipal corporation limits, municipal council, and gram panchayat, while one percent is charged as registration fee.
For example:
Mr X buys a 1,000 sq ft property within the municipal limits of Mumbai. The RR Rate of the locality is Rs 5,000 sq ft. The stamp duty calculation will look like this:
Property value as per RR Rate: Rs 50 lakh
Stamp duty: 6 percent
Stamp duty payable: 6% of Rs 50 lakh = Rs 3 lakh
Registration charges: 1% of Rs 50 lakh = Rs 50,000
Total stamp duty and registration charges = Rs 3.5 lakh
Total stamp duty and registration charges = Rs 3.5 lakh
DETERMINATION OF MARKET VALUE
| Period of Agreement | Market Value | Period of Agreement | Market Value |
| Upto 03/07/1980. | Agreement Value | 1987 | 70% of Market value of 1990 |
| From 04/07/1980 to 1984 | 50% of Market value of 1990 | 1988 | 80% of Market value of 1990 |
| 1985 | 60% of Market value of 1990 | 1989 | 90% of Market value of 1990 |
| 1986 | 65% of Market value of 1990 | 1990 | Onwards as per Ready Reckoner |
