Stamp Duty and Property Registration Charges in Mumbai

Undeniably, the stamp duty and registration charges in Mumbai serve as one of the highest sources of revenue for the Maharashtra Government. Before you read through the current rates, here is a quick introduction to what Stamp Duty and Registration Charges are. Stamp duty is the transactional tax, which plays a key role in the transactions made on a property. It is pretty much similar to what a government collects for sales tax and income tax. However, when a property is considered, the stamp duty is charged on the present agreement value or market value, whichever is high.

The stamp duty has to be paid fully and on time. Any delay will impose a penalty. Also, make a note that a property document is only valid if the payment for stamp duty has been paid. Also, it acts a good evidence in the courts.

The stamp duty is levied on both commercial and residential property transactions, even including the leasehold or freehold properties. Since the stamp duties are levied by the states, the amount will vary from one state to the other.

Current Stamp Duty Rates In Mumbai

As per the recent updates stated by the Maharashtra Government, the current stamp rate in Mumbai are:

Note: The percentage of the stamp duty depends on two crucial factors:

• A property’s registered price.
• A property’s ready reckoner rate.

The rate whichever is higher among the above two is taken into account for the stamp duty.

Factors That Affect The Stamp Duty

There are multiple factors that affect the percentage of the stamp duty. These include:

• The usage of a property – If it is for residential or commercial use.
• The property type – Whether it is an independent house or a flat, etc.
• The owner’s age – Concessions if the owner is a senior citizen. However, this is applicable only to a few states and not all.
• The property location – Whether the property is situated at the suburban, rural, or metropolitan area.
• The status of a property – If it is new or old.
• The owner’s gender – A few states also offer concessions or discounts for property owners, who are females.

How To Pay Stamp Duty?

Stamp duty can be paid in three ways, which are:

• Franking: The process involves an agreement, which is usually printed on a paper. The agreement is checked and then submitted to any authorized bank. The documents are then processed via a franking machine.
• Stamp Paper: This is the traditional way of paying the stamp duty. The agreement details are written in a paper, which the executants sign after validating. After 4 months, it is registered at a sub-registrar office. The process takes a long time. Hence, might not be a convenient method.
• E-stamp: To overcome the issues with the above two methods, the government implemented the concept of e-stamping. The payment is done online and doesn’t take much time for the process. The transaction is either a NEFT or an RTGS. This advanced method prevents an applicant from submitting any fake/forged stamp papers to the authorities. Moreover, the method saves time and is highly convenient.

Ready Reckoner Rate

It is the minimum rate, which the state government informs via a registrar/sub-registrar office for registering all the transactions associated with a property. The ready reckoner rates in Mumbai depend on different factors like:

• Market Value & Amenities: The ready reckoner rates in Mumbai primarily depend on the current market value of the property and the type of facilities or amenities that are being offered in that area.
• Location: The location of a property also plays a key role. The state administration of Mumbai has categorized the properties in Mumbai as well as its suburbs to 19 zones or divisions, which are gain sub-categorized into 221 sub-zones with respect to locations. Each zone and sub-zone is classified based on the main railway lines and arterial roads, starting from the west and ending to the east.
• Property Type: Usually, the state government assigns low ready reckoner rates to the residential properties and high rates to the commercial ones. Also, note that the value of an apartment or a flat differs from an independent house/villa or a plot in the same locality.

Current Ready Reckoner Rate In Mumbai

• The residential apartments or flats in Mumbai have a ready reckoner rate ranging between Rs. 42,000 and Rs. 8,61,000 for every sq.mt. This is applicable to 2018 and 2019.
• The commercial properties (private and public) in Mumbai have a maximum ready reckoner rate of Rs.1,197,500 for every sq.mt. This is applicable to 2018 and 2019.

The table shown below gives a summary of the current ready reckoner rates in Mumbai:

Current Ready Reckoner Rate For Flats/Apartments & Residential, Industrial Lands In Mumbai

Current Ready Reckoner Rate For Office Space & Shops In Mumbai

FAQs on Stamp Duty and Property Registration Charges in Mumbai

1. Can I pay stamp duty and property registration fees online in Mumbai?

   Yes, online payment of stamp duty and property registration can be done in Mumbai.

2. How can make online payment of stamp duty and property registration fees?

   To do so, you need to visit the website of Government Receipt Accounting System (GRAS).

3. What is the current stamp duty in Mumbai?

   The current stamp duty charge in Mumbai is 5%.