Stamp Duty and Property Registration Charges in Mumbai

stamp duty in mumbai — (Source: housing.com)

Buyers need to pay stamp duty and registration charges to the state government while purchasing any movable or immovable assets. The purpose behind paying these charges is to register the property against a buyer’s name in the municipal record.

According to Section 3 of the Indian Stamp Act, 1899, it is a mandatory payment for legal possession of a property.

If you plan to buy a property in Mumbai, go through this article to find out applicable registration charges and stamp duty in Mumbai along with other important details.

What Are the Stamp Duty Rates in Mumbai?

The Maharashtra Government has revised stamp duty in the state. Earlier, it reduced the stamp duty by 3% from 1st September to 31st December 2020. The applicable reduced rate was 2% from 1st January to 31st March 2021.

The latest stamp duty rates in Mumbai vary based on the semi urban and rural areas. For instance, the stamp duty rate for areas within gram panchayat limits, municipal limits of urban areas, and within municipal councils or panchayats or cantonments are 3%, 5% and 4% respectively. Also, the stamp duty varies depending on the owner of the property. Have a look below to know more.

What Are the Present Stamp Duty and Registration Charges in Mumbai?

Take a look at the current stamp duty in Mumbai in this table illustrated below.

Owner of the property	Stamp duty
Women	5%
Men	6%
Joint (male and female)	6%
Joint (male and male)	6%
Joint (female and female)	5%

However, the home registration charges in Mumbai are ₹30000 for properties worth above ₹3000000. 1% of the property value for properties worth less than ₹3000000.

Stamp Duty in Mumbai as Per Area Type

Here are the stamp duty rates in Mumbai applicable on the sales deed in areas other than urban localities. Here are the details:

Locations in Mumbai	Stamp Duty in Mumbai (For Men)	Stamp Duty in Mumbai (For Women)	Property Registration Charges in Mumbai
Within the limits of any Panchayat / Municipal Council / Cantonment Area within MMRDA	4% of the property’s value	3% of the property’s value	1% of the property’s value
Within the limits of any Gram Panchayat	3% of the property’s value	2% of the property’s value	1% of the property’s value
Within the municipal limits of any urban area	6% of the property’s value	5% of the property’s value	1% of the property’s value

Stamp Duty on Different Property Deeds in Mumbai

Here are the applicable stamp duty rates in Mumbai along with the rest of Maharashtra on different property deeds -

Sales Agreement	Stamp Duty
Lease agreement	5%
Power of Attorney	5% for property within the municipal limits. 3% for areas within the gram panchayat.
Gift sales agreement	3%
Gift sales agreement for residential/agricultural property transferred to family members	₹200

The registration for each city is like that of Mumbai.

Cities	Stamp Duty Rates (Male)	Stamp Duty Rates (Female)	Registration Charges
Mumbai	6% (Stamp duty 5% + 1% Metro Cess)	5% (Stamp duty 4% + 1% Metro Cess)	For properties above ₹30 lakh - ₹30000. For properties below ₹30 lakh - 1% of the property value.
Pune	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above ₹30 lakh - ₹30000. For properties below ₹30 lakh - 1% of the property value.
Thane	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above ₹30 lakh - ₹30000. For properties below ₹30 lakh - 1% of the property value.
Navi Mumbai	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above ₹30 lakh - ₹30000. For properties below ₹30 lakh - 1% of the property value.
Pimpri Chinchwad	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above ₹30 lakh - ₹30000. For properties below ₹30 lakh - 1% of the property value.
Nagpur	7% (Stamp duty 5% + Local Body Tax (LBT) 1% + 1% Metro Cess)	6% (Stamp duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)	For properties above ₹30 lakh - ₹30000. For properties below ₹30 lakh - 1% of the property value.

The registration for each city is like that of Mumbai.

How to Calculate Registration Charges and Stamp Duty in Mumbai?

The calculation of stamp duty is based on the ready reckoner rates and property value. A ready reckoner rate is the minimum value below which you cannot purchase a property. Stamp duty is mainly charged on a higher ready reckoner rate or the property value.

This means if a property value is worth ₹60,00,000 and the ready reckoner rate is ₹50,00,000, stamp duty will be applicable on the higher value, that is, ₹60,00,000.

Now, let’s compute the stamp duty on property in Mumbai for a flat in Worli -

Reckoner Rate	₹75,000 per sq. m
Flat Size	1,000 sq.m
Total Value	₹7,50,00,000
Stamp Duty	5% of ₹7,50,00,000 = ₹37,50,000

Calculating property registration charges in Mumbai is also easy.

Here is an illustration for a property worth more than ₹30,00,000 -

Property Cost	₹5,00,00,000
Registration Fees	₹30,000

Conversely, following is an example for a property worth less than ₹30,00,000 -

Property Cost	₹25,00,000
Registration Fees	1% of ₹25,00,000 = 25,000

What Are the Steps to Use a Stamp Duty Calculator?

You can skip manual calculation and use an online stamp duty calculator to save time and effort. To use this stamp duty calculator, follow the simple steps below:

Step 1: Visit the stamp duty online calculator page. Select the option based on your requirement, such as “Sales Deed” and “Agreement to sale”.
Step 2: Select an area, that is, Municipal Corporation or Gram Panchayat. Choose a municipal corporation area to which you belong, for example, Municipal Corporation Mumbai.
Step 3: Enter the consideration property value and market value to get the applicable stamp duty in that area.

How to Pay Stamp Duty and Registration Fees in Mumbai?

You can pay registration fees and stamp duty in Mumbai online and offline. Here are the simple steps to follow -

Online Procedure

Step 1: Visit theGovernment Receipt Accounting System website. Select “Inspector General Of Inspection” and click on “Pay Without Registration”.
Step 2: Now select “Citizen and choose “Make Payment to Register Your Document” from the drop-down list. Select “Pay Stamp Duty and Registration Fee Together”.
Step 3: Fill in the online form with relevant information such as district, registrar office and other details.
Step 4: Select the payment mode, bank and enter the captcha to proceed.
Step 5: If you select payment across the bank, you must pay stamp duty in cash or cheque to the listed banks. After the end of the transaction, you will receive a challan. Collect the Government Reference Number for future reference. You will also get details such as the Branch code, CIN and PRN number of the bank.

Offline Procedure

You can opt from the following mode to pay property stamp duty and registration charges offline -

Stamp Paper
Franking

What Are the Points to Consider Before Paying Stamp Duty in Mumbai?

Here are a few essential points you need to consider before paying stamp duty in Mumbai -

All assets applicable for stamp duty must be stamped before registration or the next working day from the execution date. If a property deed is executed outside the territory, it can be stamped within 3 months. Here, execution means signatures of both the parties involved in the transaction on the agreement.
The date of the issued stamp paper must not be more than 6 months from the transaction date.
A stamp paper must be in the name of individuals involved in a transaction.

You can pay stamp duty in Mumbai via adhesive stamps. This adhesive stamp is removed at the execution time so that it is not available for reuse.

What Are the Factors That Affect Stamp Duty in Mumbai?

Several factors affect the stamp duty in Mumbai. Here they are as follows:

Factors	Effect on Stamp Duty Rates in Mumbai
Property Owner’s Age and Gender	Only selected states offer a concession in stamp duty to senior citizens. At the same time, cities like Mumbai provide a 1% rebate on stamp duty to female homebuyers. Hence, these two are determining factors for calculating stamp duty in a state or a city.
Location of a Property	Stamp duties are always higher in the municipal limits of an urban area. Additionally, areas outside this enjoy lower stamp duties.
Use and Type of Property	Stamp duties change based on the commercial and residential property. Stamp duty for commercial property in Mumbai is higher than a residential one. Also, stamp duty varies with flat, independent home or other property types.
Amenities and Property Status	Properties with high-end facilities, like an elevator, swimming pools, qualify for higher stamp duty. Also, whether the property is old or new is one of the vital determinants of stamp duty.

Are Tax Benefits Available on Stamp Duty and Registration Charges?

Yes. According to Section 80C of the Income Tax Act 1961, expenses related to stamp duties and registration charges directly related to the transfer are eligible for a tax deduction. The maximum deduction limit is ₹1,50,000.

Individuals and HUFs are eligible to claim deduction under the following circumstances -

You can claim tax deduction during the year the actual payment of these expenses is made.
The property construction is complete, and you are the legal owner of the respective property.
Commercial property, residential plot and resale property are not eligible for a tax deduction. Only new residential property qualifies for exemption.
Co-owners in joint ownership can claim a tax deduction on their tax returns. The deduction is based on their share in a property. The maximum deduction limit remains at ₹1,50,000. However, if a taxpayer possesses complete or partial property ownership, he/she cannot claim this tax exemption.
If there is a property transfer within 5 years of purchase, you are liable to pay the tax in the assessment year when you transferred this property.

A total of 3244 properties were registered in Mumbai recently, generating ₹249.42 crores in stamp duty and registration fees. This is as per the Maharashtra Department of Registration and stamps. At present there is a 6% stamp duty fee and 1% registration, besides other taxes such as the metro cess and local body tax. However, women homebuyers have been given a 1% waiver in stamp duty.

So, whether you are a real estate developer or a homebuyer, it is a viable opportunity. Before moving ahead, make sure to check stamp duty rates in Mumbai and calculation procedures to avoid any last-minute inconvenience.

FAQs About Stamp Duty and Property Registration Charges in Mumbai

All

Can I get a refund of the stamp duty in Mumbai?

Yes. You can get a refund of the stamp duty in Mumbai only against specific situations. A few of them are:

The stamp paper has errors in information
The stamp paper is duly signed, but the transaction is illegal as per Section 31 of Specific Relief Act.

What happens if you do not pay the stamp duty in Mumbai?

You need to pay the outstanding stamp duty along with a monthly 4% penalty on this due amount. Penalty charges change as per the requirement.

Is stamp duty inclusive of GST?

No. GST and stamp duty are two different taxes. Both have no impact on each other.