The purchase of property is a complex and costly procedure. Apart from the actual value of the property, many other costs have to be borne by the buyer. One of these is the stamp duty. During the purchase of movable or immovable property, the buyer has to get the property stamped. For this a certain amount has to be paid by the buyer to the state government. This is a mandatory procedure and is known as the Stamp Act. In this article we provide you information about the various details of the Maharashtra Stamp Act.
Maharashtra Stamp Act defined
The act came into force in 1958 and is levied only in Maharashtra. The act is imposed on instruments on which the buyer must pay a stamp duty to the state government as defined under Schedule 1. The act was recently amended. In the amendment, the e-payment of stamp duty has been included. Other changes are revision of penalty clauses, revision of stamp duty on gift deeds, etc.
Calculation of Stamp Duty
When calculating the Stamp Duty, the value of the property, as mentioned in the buyer-seller agreement, and the circle rates are taken into account. In Maharashtra, the stamp duty of each location or area is different. Whether it is the budget friendly flats in Mumbai at Dahisar or in a rural area, the stamp duty rates will be different. For properties situated in gram panchayats, the buyer has to pay a stamp duty of around 3 percent. But for properties in urban areas, the stamp duty is 5 percent of the value of the property.
Determining the amount of stamp duty and registration
Many factors determine the amount of stamp duty you have to pay. The stamp duty charges for commercial property will be significantly higher compared to that of a residential apartment. Rural and semi-urban areas attract much lower stamp duty and registration charges than an upscale locality. Similarly, the area and the property’s market value play a key role in determining the amount of stamp duty to be paid by the prospective buyer.
Payment of stamp duty
Any moveable or immovable property executed in the state needs to be stamped before the transaction or on the day of execution. In case it is not done on that day then the property must be stamped the next working day. There are certain rules to be followed like the stamp paper should be in the name of one of the parties making the transaction and the stamp paper’s issuing date should be less than six months from the transaction date.
For the convenience of buyers, the state government accepts online payment. The process is easy and you are required to visit the Maharashtra Stamp Duty online payment portal, fill in the required details, and make the payment. Another payment options is the traditional non-judicial stamp papers.
Getting the property stamped is an important part of the property buying process. For the benefit of buyers, the government reduced the stamp duty on property transactions. This was done in two slabs. The first slab was from September 1, 2020, to December 31, 2020, and saw a reduction of 3 percent. In the next slab, which is still in force and is from January 1, 2021, to March 31, 2020, stamp duty rates have been reduced by 2 percent.
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