Date: 28 Mar, 2024 Author: Team Piramal Realty

Stamp Duty and Registration Charges in Mumbai

In Mumbai, renowned for its status as one of the world’s most expensive property markets, prospective buyers are confronted with a multitude of costs when considering a property purchase.

Beyond the purchase price itself, there exist several additional expenses that often catch buyers off guard. Foremost among these is the stamp duty in Mumbai, which substantially expands the overall expenditure of buying a house.

What is Stamp Duty – Explained!

Stamp duty is a type of tax that individuals must pay to the Government of India for any transaction involving immovable property. It is necessary to register the property against one’s name in the local municipal records, and this requires payment of the stamp duty.

This tax is mandatory under Section 3 of the Indian Stamp Act, 1899. Recently, the Maharashtra Government revised the stamp duty rates.

Stamp Duty and Registration Charges in Mumbai in 2024

It is essential for homebuyers to consider the current stamp duty and registration fees for property in Mumbai before planning a property purchase:

Areas in Mumbai	Stamp Duty Rates for Women	Stamp Duty Rates for Men	Registration Fees in Mumbai
Inside the boundaries of an urban municipality	5%	6%	1%
Within the jurisdiction of a municipal council/panchayat/cantonment in the MMRDA region	3%	4%	1%
Within the boundaries of a gram panchayat	2%	3%	1%

Current Stamp Duty in Mumbai: Area-wise

Area in Mumbai	Stamp Duty	Registration Charges in Mumbai
South Mumbai	5% + 1% metro cess	1%
Central Mumbai	5% + 1% metro cess	1%
Western Mumbai	5% + 1% metro cess	1%
Harbour	5% + 1% metro cess	1%
Thane	5% + 1% metro cess	1%
Navi Mumbai	5% + 1% metro cess	1%

Property/Flat Registration Charges in Mumbai in 2024

Property Buyer	Stamp Duty Rates	Flat/House Registration Charges in Mumbai
Men	6%	30,000 for properties above ₹30,00,000 1% of the total value of the property for properties below ₹30,00,000
Women	5%

How is the Mumbai Stamp Duty Rate Calculated?

Property stamp duty in Mumbaiis determined by the transaction value in the sale agreement. In Mumbai, properties cannot be sold below government-set ready reckoner (RR) rates. The property’s value is calculated based on these rates for stamp duty purposes.

If the property’s registered value is higher than the RR rate, the buyer pays stamp duty on the higher amount. If it is lower, stamp duty charges in Mumbai are calculated using the RR rates. So, to calculate stamp duty and registration charges in Mumbai, it is important to know the RR rates. This ensures fairness and compliance with government rules in property transactions.

Note:

To purchase a house in Mumbai that will be ready in two years, one needs to pay a 2% stamp duty and a 1% registration tax. The stamp duty and registration charges for resale flats in Mumbaistay the same.
The stamp duty for rent agreements in Mumbai is determined by the Bombay Stamp Act, 1958. The stamp duty and registration charges for lease agreement in Mumbai is 0.25% of the total rent for the specified period.

Documents Required to Purchase a Property in Mumbai

Agreement to Sale: A preliminary agreement outlining the terms of the property sale.
Sale Deed: The legal document transferring ownership of the property from seller to buyer.
Encumbrance Certificate: A certificate verifying that the property is free from any legal or financial liabilities.
Property Tax Receipts: Documentation showing that property taxes have been paid up to date.
No-Objection Certificate (NOC): A certificate from relevant authorities stating there are no objections to the property sale.
Power of Attorney (if applicable): Legal authorisation allowing a person to act on behalf of another in property transactions.
Proof of Stamp Duty and Registration Fees Payment: Documentation confirming payment of stamp duty and registration fees.
Occupancy Certificate(for new buildings): Certificate issued by local authorities confirming the property is fit for occupancy.
Completion Certificate(for under-construction buildings): Certification indicating that the construction of the property is completed as per regulations.
TDS Deduction Certificate (for properties over ₹50 lakh): Certificate showing tax deduction at source as per income tax regulations.
PAN Card of Buyer and Seller: Permanent Account Number card of both the buyer and seller, required for financial transactions.
Aadhaar Card of Buyer and Seller: Identification card issued by the government, serving as proof of identity and address.
Passport Size Photos of Buyer and Seller: Photographs of both parties for documentation purposes.
ID Proof of Buyer, Seller, and Witnesses: Valid identification documents such as driver’s licence, passport, or voter ID card.
Address Proof of Buyer, Seller, and Witnesses: Documents verifying the residential address, such as utility bills or rental agreements.

How to Pay Stamp Duty Online in Mumbai?

In Mumbai, homebuyers can conveniently pay stamp duty and registration charges online, thanks to the Maharashtra government’s e-payment facility.

To make the payment, visit the official Maharashtra Stamp and Registration Department's portal through the Government Portal athttps://igrmaharashtra.gov.in/Home. Once on the website, enter the necessary property and personal details and complete the payment using the available online channels. This seamless process ensures a hassle-free way to fulfil your property registration requirements.

Stamp Duty and Registration Charges in Mumbai 2024-25: Key Highlights

Stamp duty Mumbai	Governed by the Maharashtra Stamp Act
Registration charges in Mumbai	1% of the property value if it exceeds ₹30 lakh; otherwise, a flat fee of ₹30,000.
Online Payment	Payments can be made through the official portal at https://igrmaharashtra.gov.in/
Rebate for women	Women buyers receive a 1% rebate on stamp duty.

Stamp duty on different conveyance deeds in Mumbai in 2024

Conveyance deed	Stamp duty rate
Gift deed stamp duty Mumbai and other parts of Maharashtra	3%
Gift deed stamp duty for residential/agricultural property passed on to family members	Rs 200
Lease deed	0.25% of total rent
Power of attorney	0.25% of the market value of the property

Stamp Duty on Different Property Types in Mumbai (2024)

Redeveloped Projects: Buyers in redeveloped projects are required to pay ₹100 as stamp duty. For transactions between the developer and the housing society, the stamp duty is calculated based on the conveyance deed.

Resale Projects: Stamp duty is 6% of the property value for male buyers and 5% for female buyers.

Investors: The stamp duty waiver period has been extended for up to 3 years.

Consulates/Embassies: A nominal stamp duty of ₹100 is applicable.

Key Factors Influencing Stamp Duty and Registration Charges in Mumbai

Several factors determine the stamp duty and registration fees applicable to a property:

Property Type: Residential and commercial properties are subject to different stamp duty rates, with commercial properties often incurring higher charges.
Location: The property’s location within Maharashtra impacts the rates, with properties in municipal city limits generally facing higher duties.
Property Value: Stamp duty is calculated as a percentage of the property’s sale value, meaning higher-value properties attract higher charges.
Ownership Type: Properties owned by companies usually face higher stamp duties compared to those owned by individuals.

Additional Factors Affecting Stamp Duty Rates

Several other factors can influence the stamp duty payable in Mumbai:

Age and Gender of Owner: Senior citizens and women property owners may qualify for discounts on stamp duty.
Location: Properties within city limits often attract higher rates compared to those outside municipal boundaries.
Property Classification and Use: Commercial properties typically incur higher stamp duty than residential ones.
Amenities and Property Condition: Properties with luxury features or those newly built may face higher stamp duties due to their enhanced value.

Conclusion

Understanding stamp duty on flat purchase in Mumbai is crucial for dealing with property in Mumbai. Tying to property values and government rules, these fees keep transactions legal and transparent.

In this maze of rules, Piramal Realty shines as a trusted partner, helping buyers find the best property options without complexities. With Piramal Realty’s focus on quality, buyers can confidently step into property deals, knowing their hard-earned money to buy a dream home is in safe hands.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.