Stamp Duty And Registration Charges in Mumbai

Under the state laws, property transactions in India involve payment of stamp duty and registration charges. State governments are responsible for fixing these charges and revising the same from time to time. In this article, we discuss the stamp duty and registration charges in Mumbai, and how to pay them online and offline. 

What is stamp duty?

In order to generate revenue, state governments impose a stamp duty on the sale/purchase of property. Based on various factors, stamp duty charges differ from state to state, city to city and locality to locality. Stamp duty rates range from 4-8 per cent of the deal value across India. While registering a property in his name, the buyer is supposed to pay this duty along with a fixed registration charge.

What is registration charge?

At the time of property registration, the buyer is also expected to pay a registration charges, a central levy which is typically one per cent of the deal value.  Some states also charge a flat registration fee.

What is stamp duty in Mumbai and its adjoining areas?

With an aim to boost home buying amid a historic slowdown in housing sales, the Maharastra government on August 26, 2020, reduced the stamp duty  on property purchases by 3%. With this, the stamp duty rate in Mumbai stands reduced from 5% to 2%. This reduction will, however, be effective only till December 31, 2020. from January 1, 2021, buyers shall pay 3% of the property value as stamp duty in Maharashtra.

However, women buyers can also avail of an additional discount of one per cent on property purchase. On March 8, 2021, the state government made an announcement in this regard, while presenting the Budget for the financial year 2021-2022.

Stamp duty in Mumbai’s urban areas

In areas that fall within municipal limits, the stamp duty shall be two per cent of the property value from September 1, 2020. 

Stamp duty in Mumbai’s semi-urban areas

In areas that fall within the limits of any municipal council or panchayat or cantonment within the MMRDA, the stamp duty is four per cent of the property value. 

Stamp duty in Mumbai’s rural areas

In areas that fall within gram panchayat limits, the stamp duty is three per cent of the property value. 

What is registration charge in Mumbai and its adjoining areas?

The Maharashtra government charges a flat fee on properties worth over Rs 30 lakh. The calculation is as follows:

What is stamp duty on gift deed in Mumbai?

In Mumbai, three per cent of prevailing ready reckoner rates has to be paid as stamp duty on gift deeds. So, if someone is transferring his property to their children, spouse or siblings though a deed of gift, they have to pay three per cent of the deal value as stamp duty. The registration charges on this deed would be based on the deal value, too, as explained above.

How to calculate stamp duty and registration charges?

The buyer and the seller will have to arrive at a deal value after the negotiation. While doing so, they will have to factor in the ready reckoner rates in the area. Ready reckoner rates are government-specified rates for an area, below which a property cannot be registered.

Example

For example, ready reckoner rate at Borivali East vary from Rs 52,800 to Rs 1,86,800 per square metre (sqm).  If the property falls in an area where the ready reckoner rate is Rs 52,800, then, a flat of 1,000 sqm cannot be registered below Rs 5,28,00,000 value.

The stamp duty on this transaction (at five per cent of the property value), would amount to Rs 26,40,000. Since the deal value is over Rs 30 lakh, a flat amount of Rs 30,000 would be levied as registration charge on the purchase.

How to pay stamp duty and registration charge online in Mumbai?

Proprty buyers can follow these steps to pay the stamp duty and registration charges online in Mumbai:

Step 1: Log in to the Maharashtra stamp and registration department website, https://gras.mahakosh.gov.in/. If you want to make the payment without registration, click on the tab specifying so.

Step 2: Key in the property and area details on the following page.

 Step 3: Choose the payment gateway and make the payment.

Benefits on stamp duty and registration charge payment

Homebuyers enjoy tax deductions under Section 80C of the Income Tax Act on payment of stamp duty and registration charges on property purchase. Click here to know more about the rebate.

Also read: Stamp Duty On Property Purchase In Top Indian Cities