What is the Maharashtra Stamp Act?
The Maharashtra Stamp Act, also referred to as the Bombay Stamp Act of 1958, is applicable to all the instruments listed in Schedule 1, which are subject to stamp duty payable to the state of Maharashtra.
Recent amendments to the Act include:
Revision of gift deed stamp duty in Mumbai
Introduction of e-payment options for stamp duty in Maharashtra
Updates to penalty provisions
Increases in stamp duty for certain types of instruments in Maharashtra.
What are stamp duty and registration charges in Maharashtra?
Stamp duty and registration charges are the fees a property buyer must pay to legally register their property with the government. These charges are imposed under the Maharashtra Stamp Act.
What Should You Consider Before Paying Stamp Duty in Maharashtra?
Before paying stamp duty in Maharashtra, keep the following points in mind:
- The stamp paper's issue date should not be older than six months from the transaction date.
- All assets subject to stamp duty in Maharashtra must be stamped either before registration or by the next working day.
- The stamp paper must be in the names of the individuals involved in the transaction.
- Adhesive stamps removed at the time of execution cannot be reused.
Are Fees Associated with Property Registration Included in a Home Loan?
Stamp duty and registration fees are not covered by a home loan sanction since they exceed the cost of the property. Since the buyer is responsible for paying the amounts, it is advised that potential homeowners arrange their finances before applying for a home loan in India.
Are there any tax benefits associated with registration fees and stamp duty?
Under Section 80C of the Income Tax Act, stamp duty and registration fees are allowed for exemption. When filling your income tax returns, you can claim this exemption and receive a tax rebate of up to Rs. 1.5 lac. In case of joint ownership, the co-owners are each allowed to file their income tax returns according to their respective shares of the property. That being said, section 80C's upper limit of Rs. 1.5 lac will also apply in this case.
How to Pay Stamp Duty Charges?
Homebuyers can pay stamp duty both online and offline by using any of the following methods:
- Physical Stamp Paper: Purchasing physical stamp paper from authorized sellers is one of the most popular ways for homeowners to pay stamp duty. This paper includes the necessary information about property registration. In this case, the stamp duty that applies is equal to the cost of the stamp paper. Please be aware that this procedure may be inconvenient if the stamp duty is high because you will need to purchase several stamp papers.
- Franking: Stamp duty can also be paid with franking. You must contact an authorized franking agent for this, as they will stamp your property document to make it legally binding. The majority of lenders provide buyers with franking agent services. The agent will charge you an additional franking charge in addition to the minimum charge if you choose this method.
- E-stamping: Using the SHCIL website (Stock Holding Corporation of India Limited) to complete the process online is one of the easiest ways to pay stamp duty. Please take note that this service is only available in a few places, and your state will only show up on the website if the service is available. You can download and complete the application form there. After that, you have to submit the form and the specified payment to the collecting center. You will receive an e-stamp certification with UIN after the payment .
What documents are required for Payment of Stamp Duty and Registration Charges?
If you're buying a house, the following paperwork must be presented when registering the property and paying stamp duty:
- Sale Agreement
- Sale Deed
- Khata Certificate
When is the sum owed for stamp duty to be paid?
Stamp duty costs are supposed to be paid by buyers when they register their property with the government authority. Your property ownership will be considered complete upon payment of the stamp duty and property registration fees.
Can I avoid paying stamp duty?
As a legal requirement of buying a property, stamp duty is a sum that all buyers and owners must pay the government. Those who try to avoid it face severe legal repercussions. In certain Indian states, stamp duty reductions are available to homebuyers who register their homes under the name of a female owner.
Are the stamp duty charges paid by me refundable?
Stamp duty is a one-time charge that comes with being a property owner and must be paid to the government. Since it is a transaction-based fee, it is not refundable.
Does stamp duty include GST?
The GST you pay for buying a property is not the same as the stamp duty. GST is applied to homes that are still under construction and stamp duty is for the transfer of ownership.
