Mumbai Stamp Duty and Registration Charges in 2024

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Introduction

As Mumbai is one of the most expensive property markets in the world, buyers need to consider all the associated costs before going ahead with a property purchase plan. Among these costs, stamp duty and registration charges add significantly to the home purchase amount. Buyers need to know how much money they have to pay at the time of property registration.

Mumbai Stamp Duty and Registration Charges in 2024

Table of Contents

What is Stamp Duty in Mumbai?

Governments levy a charge called stamp duty on legal documents. Usually, when assets or property are transferred, documents required to legally record certain types of transactions are subject to stamp charges. Commonly known as stamp taxes by governments.

Legal records of marriages, military commissions, and the sale or transfer of property are included in this category. Similar to income tax, stamp duty is also collected by the government. Stamp duty is considered a payment document or legal instrument.

Also admissible as evidence in court. Documents not properly stamped will not be accepted as evidence by the court. Stamp duty is payable as per Section 3 of the Indian Stamp Act, 1899. Pay in full and on time. Delay in payment of stamp duty incurs the penalty.

What is the Registration Fee?

Buyers also have to pay the registration fee for documentation work. Generally lower than stamp duty, the registration fee is 1% of stamp duty in most states.

In Maharashtra, there is a flat registration charge in Mumbai for properties worth more than ₹30 lakhs. Keep in mind that these charges are necessary to legalize ownership of the property and ensure proper documentation.

Mumbai Stamp Duty and Registration Fee in 2024

Buyers must know about stamp duty and registration rates in Mumbai before purchasing a particular property. Because that amount adds significantly to the final price. The stamp duty is the same across the state.

AreaStamp duty for menStamp duty for womenRegistration fee
within the municipal limits of any urban area6%5%1%
Municipal Council, Panchayat or Cantonment of the area under MMRDA4%3%1%
Area under Gram Panchayat3%2%1%

Registration Charges in Mumbai, 2024

For buyers of Rs. 30 lakhs and above, the registration fee is 1% of the property value, while for properties below that, the registration fee is Rs. 30,000. Unlike many states, lower prices are offered to female buyers.

Women buyers have to pay the same rate as men for Mumbai stamp duty and registration charges. This is because Maharashtra uses a uniform rate, irrespective of the gender of the person in whose name the property is registered.

Stamp Duty Calculated in Mumbai

Buyers have to pay stamp duty based on the transaction value specified in the sale agreement. Property cannot be bought or sold below the Ready Reckoner (RR) rates prescribed by the government in Mumbai. That means property value must be calculated based on current RR rates, and stamp duty must be calculated accordingly.

If the house is registered at a value higher than the RR rate, the buyer incurs increase the stamp duty. Alternatively, if the property is registered at a value lower than the RR rates, stamp duty will be calculated as per the available rates.

Mumbai Stamp Duty Calculation: Example

The RR rate per square feet is Rs. 5,000, suppose you are buying a property with a carpet area of 800 square feet. RR-based property value is 800 x 5000 = Rs. 40 lakhs. Property worth Rs. 40 lakhs, then the buyer will pay 2% of this amount as stamp duty, i.e., pay the Rs. 80,000.

IIf the property is registered for less than that, the buyer will still need to pay a stamp duty of Rs. 40 lakhs at a rate of 2%, as the property cannot be registered below the RR rate. For property worth Rs. 50 lakhs, the buyer will pay a stamp duty of Rs. 50 lakhs at 2%, i.e. pay the 1 lakh.

Documents Required for Property Registration in Mumbai

Buyer Documents

  • Agreement to sell
  • Sale Deed
  • PAN card of the buyer
  • Encumbrance Certificate
  • Property tax receipts
  • No Objection Certificate
  • Power of Attorney, if applicable
  • Proof of payment of stamp duty and registration fee
  • Occupancy certificate for new buildings
  • complete certificate for buildings under construction
  • TDS Deduction Certificate (applicable on assets worth more than Rs. 50 lakh)

seller Documents

  • PAN card of the seller
  • Aadhaar card of the seller
  • Aadhaar card of the buyer
  • Passport size photographs of buyer and seller
  • Proof of Buyer’s ID
  • ID proof of the seller
  • ID proof of the witnesses
  • Buyer’s address proof
  • Address proof of the seller
  • Address proof of witnesses

Conclusion

Maharashtra is at the forefront of stamp duty reforms. Over the past decades, the state government has periodically implemented several schemes to facilitate property purchases in the state, especially in the capital city of Mumbai, by reducing stamp duty rates, revising registration fees, and announcing amnesty schemes.

This is one reason why the stamp duty levied on property, registration in Mumbai is the highest of any metropolitan city in India. However, for final attestation of the documents, the buyer and the seller, along with two witnesses, must visit the Sub-Registrar’s office in the pre-booked slot. For more information, visit Openplot.

Also read: Stamp Duty on The Rental Agreement in India

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