STAMP DUTY AND REGISTRATION CHARGES IN MAHARASHTRA

Government of India levies stamp duty on various legal documents like sale deed, conveyance deed, gift deed and mortgage deed. This agreement determines the obligations and rights of the contracting parties. Stamp duties and registration fees establish ownership and serve as proof of sale/purchase in court. Stamp is the money you pay to the authority to register your name on the property. The price of postage varies according to the level of regional circulation. The amount of stamp duty varies by state. The most common way to pay stamp duty and registration fees is to buy physical stamp paper. Non-legal stamp paper can be purchased from authorized dealers here.

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Papers with printed stamps are known as non-judicial stamp paper. Transaction information can be recorded/recorded on stamp paper after purchase. The usual way to pay stamp duty and registration fees is to buy physical stamp paper. You can buy non-legal stamp paper from an authorized dealer. Paper with printed stamps is known as non-judicial stamp paper. Transaction information can be recorded on stamp paper after your purchase. To prevent counterfeit paper stamps and facilitate stamping, the government introduced electronic stamping. Some countries allow e-stamping. E-stamping is simply printing stamps on the Internet. Corporation of India Limited (SHCIL) has been declared as the official electronic trademark dealer and Central Repository for all used electronic trademarks. For e-stamping you need to visit SHCIL website. Details of electronic stamp transactions are available online. After completing the form, you can return it to the collection center with the stamp fee. A variety of payment methods are accepted, including debit cards, credit cards, checks, money orders and internet banking. After paying the stamp duty, you will receive an electronic certificate. The date of issue is included in the certificate’s Unique Identification Number (UIN). Electronic stamping has the advantage of being accessible and allows online verification. Franking is the process by which an authorized franking authority adds a stamp to your document to indicate the amount of postage due. You must contact a franking agent or an authorized bank acting as a franking agency to have stamps affixed before completing transactions that require stamp duty.

Stamp Duty on Gift Deed

The transferee or donee is obligated to pay stamp duty unless there is an agreement to the contrary. An agreement or gift deed, on the other hand, might indicate differently. The stamp duty is agreed to be paid equally by both parties in many sales and gift deeds. Get the stamp papers in the name of one of the parties to the gift, i.e., the donor or the donee; otherwise, the stamp paper will be rendered useless. If you pay the stamp duty on time, it is valid for six months from the date of purchase. Penalties, such as monetary fines, can be incurred if a document that needs stamping is not stamped correctly. If you don’t pay your stamp duty on time, you’ll be charged 2% every month, up to a maximum of 200 percent of the amount you owe in stamp duty.

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Stamp Duty Value
Any value set by any authority of the federal government or a state government for stamp duty payment on immovable property is referred to as stamp duty value. When acquiring a property, it is necessary to set up a substantial sum for stamp duty and registration fees. Registration fees are paid to the same body that handles all the paperwork required to complete the procedure. Suppose the actual sale consideration of such land and the building is less than the stamp duty value. In that case, the stamp duty value will be considered an absolute value of consideration, i.e., as deemed selling price, and capital gain will be computed accordingly to section 50C. The Maharashtra Stamp Act, also known as the Bombay Stamp Act 1958, applies to all instruments listed in Schedule 1 on which stamp duty is payable for the State of Maharashtra. Recent amendments in ACT include revision of gift paper stamp/gift stamp in Mumbai, including electronic payment of stamp duty in Maharashtra, revision of penal clause and enhancement of stamp duty in Maharashtra. As per the Maharashtra Stamp Act, stamp duty is payable in Mumbai and all instruments executed in Maharashtra must be stamped on the working day before or after the date of execution. However, if the document is executed including a Mumbai gift paper stamp, it can be stamped within three months of receipt in India. Maharashtra stamp duty papers should be in the name of one of the parties dealing and not the name of any of the parties or lawyers. Further, for stamp paper in Maharashtra, the date of issue of stamp paper should not be more than six months from the date of transaction. Maharashtra rates for stamp duty and registration fee in Maharashtra 2022 can be paid through stamps affixed or impressed on the document. In addition, the stamps used in the process are cancelled at the time of completion, including the wrapping paper seal, so that they are not available for recycling. After announcing a stamp duty in Maharashtra rate cut in August 2020, the Maharashtra government decided not to extend waiver on Stamp duty and registration charges in Maharashtra beyond March 31, 2021. Properties in urban areas that fall under Municipal Corporation or Municipal Council limits have to pay 1% of the property value as cess/local body tax or / transport surcharge.

This is used for funding transport infrastructure projects including s Metros, bridges, flyovers, etc. in the cities of Maharashtra Properties in rural areas which fall under Gram Panchayat and not under the jurisdiction of any Municipal Corporation or Municipal Council have to pay 1% of property consideration value as Zilla Parishad cess instead of cess/ surcharge. Also, note that properties in areas falling under Nagpur Municipal Corporation (NMC) and Nagpur Improvement Trust (NIT) jurisdiction have to pay an additional surcharge of 0.5% over and above the 1% cess/surcharge that is payable Stamp duty in Mumbai is calculated on the basis of ready reckoner rates and the property value mentioned in the buyer-seller agreement.

This holds true for other parts of Maharashtra too. For instance, stamp duty in Mumbai for a property located in the municipal limit of urban areas will be 5% of the market value, while a property located within the limits of any gram panchayat will attract 3% stamp duty in Mumbai of the market value. Maharashtra government on March 31, 2022 increased ready reckoner (RR) rates in the state for the FY 2022-23. Effective April 1, 2022, there is an average increase of 5% across Maharashtra (excluding Mumbai) while for municipal corporations (excluding Mumbai) the RR rates have been hiked by 8.80%. Rural parts of Maharashtra saw an increase of 6.96%. Ready reckoner rate average in Mumbai is 2.64%. Ready reckoner rate is very important to calculate Stamp duty and registration charges in Maharashtra 2022. It depends on:

Location: Location of property has an impact on the ready reckoner rate. Mumbai is divided into 19 zones that are further classified into 221 sub zones.

Type of property: Ready reckoner rate also vary based on the type of the property. While commercial property has high ready reckoner rate, the residential property enjoys a lower ready reckoner rate. Again, ready reckoner rate value differs in a residential property too- it’s different for independent house or villa and a flat that are both located in the same area.

Property market value: Ready reckoner rate is based on the market value of the property. Any amenities that are present with the property further impact the ready reckoner rate.

The state had kept the ready reckoner rates unchanged for the financial year 2021-22 owing to the pandemic. There was a marginal increase of 1.74% in ready reckoner rates in the state in September 2020.

Reduction in stamp duty Maharashtra between September 1, 2020 to December 31, 2020 and from January 1, 2021 to March 31, 2021, was a welcome move, especially reduction in stamp duty in Mumbai and stamp duty in Pune, where the property costs are already high.

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Following this announcement on stamp duty and registration charges, Mumbai saw a significant spike in spite of the economic pressure caused by the second wave of the Coronavirus pandemic. Example, if cost of a property in Mumbai is Rs 1 crore, the stamp duty in Mumbai to be paid in the period from September-December 2020 was Rs 2 Lakh and from January to March 2021 was Rs 3 lakh, unlike the Rs 5 lakh which home buyers have to pay now as the stamp duty in Mumbai is presently 5%. Hence, there was a clear savings of Rs 3 lakh or 2 lakhs for the home buyers.

Stamp duty and registration charges: Stamp duty Maharashtra refund

You can get a refund of stamp duty Maharashtra if:

The stamp duty paper is not fit for use due to writing mistakes.

The stamp paper is unsigned and complete or partial information is filled but is intended not to be used.

The stamp paper is signed but the transaction is found to be illegal by the party as per Section 31 of Specific Relief Act.

The court finds the transaction to be entirely illegal since the beginning (Void /ab/ initio) as per Section 31 of Specific Relief Act.

People who are required to enter refuse to enter or die before entering.

Any party who refuses to sign a stamp paper document.

Any part of the stamp paper document does not comply with the conditions.
The stamp value for the document is not enough and the transaction is completed using another stamp paper with the correct value.
The stamp paper is defaced and both parties execute another stamp paper document for the same purpose.
To check from here Stamp Duty and Registration Fees in Maharashtra 2022: Factors Based on Stamp Duty
Stamp duty in Maharashtra depends on whether the property is urban or rural, total transaction value, etc. depending on Until April 2020, Maharashtra stamp duty has been reduced for two years in areas under Mumbai. Regional Development Authority (MMRDA) and Municipalities of Pune, Pimpri-Chinchwad and Nagpur.

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There are several factors that affect the price of stamp duty in Maharashtra, including stamp duty in Pune, stamp duty in Mumbai, etc.
• Age of the person: If the house buyer is old, there is a possibility of reducing the stamp duty and registration fee in Maharashtra.
• Gender: Sometimes stamp duty and registration fees for women in Maharashtra 2021 can be very attractive to encourage home buyers.
• Age of property: If a person invests in an old property, stamp duty can be discounted in Maharashtra. However, if the property is a new property, then the stamp duty in Maharashtra is likely to be high.
• Type of property: According to stamp duty and registration fees in Maharashtra 2021, residential properties command lower stamp duty than commercial properties in Pune and other parts of Maharashtra.
Stamp duty can be paid in Maharashtra in three ways:

  1. Stamp Paper: Once the details of the contract have been verified, payment can be made by stamp paper on paper signed by an authorized person. After that, the stamp paper is registered in the sub-registration department after 4 months.
  2. Franking: Then, the Maharashtra stamp duty is paid where it is printed on the contract paper and then sent to the authorized bank. Once submitted, the document is processed using a franking machine to pay stamp duty.
  3. E-stamp: This is the most convenient way to pay Stamp Duty or Stamp Duty in Sukabumi. Then in Maharashtra stamp duty is RTGS or NEFT. An additional advantage of this method of paying Maharashtra stamp duty is that the applicant cannot submit fake documents.
    Stamp Charges and Registration Charges: Notice of Intimation Charges
    For Notice of Intimation (NOI), Loan Deposit Certificate or Mortgage, people have to pay the application fee online without visiting the SRO office. This stamp duty and registration fee can be done by visiting the website and is available all over Maharashtra.
    It doesn’t matter what the loan amount is, Maharashtra charges $1000 if applied online. If the approach notice is physically served by visiting the SRO office, the processing fee for the Maharashtra approach notice or document will be 300.
    .Stamp duty and registration fees on previous property documents

The Maharashtra Stamp Act authorizes the District Collector to call for documents within 10 years from the date of registration of such documents to verify whether dues have been paid in practice, the Bombay High Court held that stamp duty cannot be collected on documents that are not. Enough to be stamped at the time of the next sale. Further, as per Stamp and Registration Fees in Maharashtra, if historical documents need to be stamped, stamp duty will be recovered at the market rate only at the time of transaction. This means that stamp duty and registration fees cannot be applied retrospectively.
How stamp duty and registration fee is calculated in Maharashtra 2022?
Stamp duty and registration fee in Maharashtra 2022 is calculated based on market value or ready account level.

How much does a stamp cost in Sukabumi?
Stamp duty varies from state to state and city to state in Maharashtra. Stamp duty in Sukabumi is now 6%, including 1% metro.


How to refund Maharashtra stamps?
Mandatory entry of details in online IGR Maharashtra portal for Maharashtra stamp refund. After completion, Maharashtra refund number is issued and you have to submit online application at sub-registration office.
In Maharashtra, stamp duty is charged on property transactions across the country. In Maharashtra, stamp duty and registration fee are levied as per Maharashtra Stamp Duty Act. To provide relief to the home owners and boost the real estate sector amid the economic crisis caused by the Coronavirus pandemic, the Maharashtra government has reduced the stamp duty in Maharashtra to 2-3% of the property value. However, from April 2021, stamp duty has been reinstated in Maharashtra.
Latest News: Maharashtra Government has decided to collect 1 percent Metro Cess in four cities namely Mumbai, Nagpur, Thane and Pune in a new development. Stamps will raise the tax rate by 1 percent. Although this decision was supposed to take place in February 2019, it was postponed due to the Coronavirus pandemic and the complications it caused. The funds created will be used to finance transportation infrastructure projects in these cities.

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Factors affecting Stamp Duty and Registration Fees in Maharashtra.

Stamp Duty and Registration Fees are calculated based on location and residential rates in Maharashtra. Find below some important factors that affect Maharashtra stamp duty and registration fees, including stamp duty in Mumbai and stamp duty in Pune.

• Type of property: In Maharashtra, stamp duty and registration fees are affected by the type of property. For example, a person may pay a lesser amount as stamp duty on a residential property as compared to a commercial property in Maharashtra.

• Age of property: Age of property also plays an important role when assessing stamp duty and registration fees in Maharashtra. People investing in old properties may pay more stamp duty in Maharashtra as compared to new properties.

• Age of the buyer: If the property buyer is a senior citizen, they can charge less stamp duty and registration fee in Maharashtra.

• property location: Sometimes property location helps in reducing stamp duty and registration fees in Maharashtra. This is because the stamp duty is based on a lower and higher settlement rate depending on the location of the selected property in Maharashtra.

• Gender of buyer: Like senior citizens, women in Maharashtra are also entitled to concessions in stamp duty when registering property purchased in their name.

Stamp Duty in Maharashtra – Charges and levies covered (Rural and urban)

Total Stamp Duty in Maharashtra includes Stamp Duty, and additional taxes as follows:

In urban areas falling under Municipal Corporation or Municipal Council limits, there is a cess/ transport surcharge/ local body tax payable. This is 1% of the property value, and is intended to be used for funding transport infrastructure projects in the cities such as Metros, bridges, flyovers, etc.
In rural areas which fall under Gram Panchayat and not under the jurisdiction of any Municipal Corporation or Municipal Council, this cess/ surcharge is replaced by Zilla Parishad cess. This cess is also payable at 1% of the property consideration value.

An additional surcharge of 0.5% is applicable on areas falling under the Nagpur Municipal Corporation (NMC) and Nagpur Improvement Trust (NIT) jurisdictions. This is over and above the 1% cess/ surcharge payable.

Stamp Duty in Maharashtra Refund
The Maharashtra Stamps Act 2017 makes a provision for the refund of the stamp duty in Maharashtra. The stamp duty in Maharashtra can be refunded in the following cases-

· Cases where a person whose signature is essential declines to sign or is dead before signing.

· In cases where a party to the stamp paper document refuses to sign it.

· In the case where a party does not fulfil the essential terms and conditions.

· Cases where the value of the stamp is insufficient, and the transaction was completed by using another stamp paper with the appropriate value.

· In cases where stamp paper is torn, and parties involved have executed a different stamp paper document for the same purpose.

· In cases where the stamp paper is a misfit for use owing to written errors

· In cases where stamp paper is unsigned/ not signed, and information filled (complete/partial) is intended not to be used.

· The cases where a stamp paper is signed but the transaction is illegal (According to Section 31 of Specific Relief Act).

· In cases where a lawful court declares the transaction entirely illegal from the beginning (Void /ab/ initio)

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Case laws

Bombay HC decision on the retrospective applicability of stamp duty on past transactions
While deciding the dispute, justice Gautam Patel, took an out-of-the-box stand and held that the stamp duty authorities had no right to collect the stamp duty, for inadequately stamped past documents of any property, at the time of registration of its subsequent sale. Patel observed that the stamp duty was payable with respect to an instrument and not with respect to a transaction, as per the provisions of the Indian Stamp Act.

He also held that stamp duty cannot be recovered at the present rate, with respect to past instruments which were executed at a time when the instrument was not liable for stamp duty, as these documents could not be treated as ‘unstamped’ or ‘inadequately stamped’ at the relevant time. He also observed that as there were no clear cut provisions in the law, about the recovery of stamp duty retrospectively, the stamp duty authorities have no authority to insist on payment of stamp duty on such past instruments that formed part of the chain of documents.

The court also observed that even if the instrument was subject to stamp duty, the rate to be applied would be the rate at which the relevant document was to be stamped and in no case can the same be required to be stamped at current stamp duty rates.

CONCLUSION

· Maharashtra government develops blockchain for e-registration: A software tool has been developed by Maharashtra government using a blockchain technology where a developer can register a fresh property sale from their offices. This e-registration data tool is beneficial for developers, property buyers, government authorities and financial institutions. Currently, 417 developers have opted for this e-registration and 4000 e-registrations have already taken place.

· “We have developed a blockchain technology where all the data of e-registration is being stored. It is under pilot and will be launched soon. The blockchain will store all the data of e-registration and it will authenticate the data. Currently, 20 percent of the registrations come for signing a correction deed, and we need technology to handle the data,” said Shravan Hardikar, Inspector-General of Registration and Stamps, Maharashtra.

· Conclusively, Stamp duty in Maharashtra is levied on property transactions across the State. Stamp duty rates in Maharashtra in 2021 were changed due to the Coronavirus pandemic. However, stamp duty and registration charges in Maharashtra 2021 were reinstated to the previous regime.

REFERENCES

https://www.99acres.com/articles/stamp-duty-and-registration-charges-in-mumbai.html

The Indian Stamp Act, 1899

BY SHIVAM GOEL

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