The Maharashtra Stamp Act Bare Act is the legislation that governs stamp duty on various legal documents and transactions within the state, outlining rates, payment methods, and legal implications. It was originally called the Bombay Stamp Act.
By Admin | 
The Stamp Act is a law designed to collect tax on certain instruments or documents. Its primary purpose is to provide legal validity to documents and generate revenue for the state. This act applies to various legal instruments, ensuring that all transactions are documented and taxed appropriately.
The Maharashtra Stamp Act, originally enacted in 1958, is the rulebook for stamp duty in the state. It specifies which documents are taxed, how much you owe, and how to pay.
The Act applies to agreements, gift deeds, conveyance deeds, leases, partnership deeds, and other specified documents listed in Schedule I.
Notable changes include the introduction of e-stamping in 2013 and the reduction in stamp duty rates for women purchasers in 2024.
According to a Financial Express report, from September 1st to December 31st, 2020, stamp duty was reduced by 3%, followed by a further reduction of 2% from January 2021 to March 2021 by the Maharashtra government. This initiative proved successful, resulting in a significant increase in property registrations and providing a much-needed boost to the real estate sector.
The Maharashtra Stamp Act as of 2024 includes several important updates. These updates focus on encouraging female homeownership, reinstating standard rates after pandemic-related adjustments, and providing a pathway for rectifying past stamp duty payment issues.
As per the latest act, purchasing a new flat in Pune involves a 5% stamp duty, along with a 1% local body tax, a 1% metro cess, and a 1% registration charge (capped at Rs. 30,000). Buyers of new flats should verify the latest government regulations and consult with legal advisors to ensure they understand all applicable costs.
Stamp duty is usually a percentage of the higher of the transaction value or the market value of the property. Your property’s location (e.g., within municipal corporation limits or in a rural area) can also affect the rates.
The calculation of stamp duty in Maharashtra is straightforward. Multiply the applicable rate by the higher of the transaction value or market value. For example, if you’re buying a property for ₹75 lakhs and the stamp duty rate is 5%, your stamp duty would be ₹3.75 lakhs.
| Article in Schedule I of the MSA | Description | Stamp duty before the Amendment | Stamp duty after the Amendment |
|---|---|---|---|
| Article 4 | An affidavit is a written statement of facts, signed by the person making it and sworn under oath or affirmed, as permitted by law. | INR 100 | INR 500 |
| Article 5(h)(B) | An agreement, or its records or memorandum, unless otherwise specified. | INR 100 | INR 500 |
| Article 8 | An appraisement or valuation conducted without a court order during an ongoing suit. | INR 100 | INR 500 |
| Article 9 | An Apprenticeship Deed, including any written document concerning the service or training of an apprentice, clerk, or servant under a master to learn a trade or profession, excluding formal articles of clerkship. | INR 100 | INR 500 |
| Article 10 | Articles of Association for a company without share capital, with nominal share capital, or with increased share capital. | 0.2% on share capital or increased share capital, as the case may be subject to a maximum of INR 50,00,000. | 0.3% on share capital or increased share capital, as the case may be subject to a maximum of INR 1,00,00,000. |
| Article 12 | An Arbitration Award, meaning a written decision by an arbitrator or umpire on a referred matter. | INR 500 | |
| 1. Relating to movable property | Same as conveyance under Article 25(b) of MSA. | ||
| 2. Relating to movable property upto INR 50,00,000. | 0.75% of the amount granted in the award. | ||
| 3. Relating to movable property above INR 50 lakhs up to INR 5,00,00,000. | INR 37,500 plus 0.5% of the amount granted in the award. | ||
| 4. Relating to movable property above to INR 5,00,00,000. | INR 2,62,500 plus 0.25% of the amount granted in the reward. | ||
| Article 27 | A counterpart or duplicate of any instrument subject to duty, for which the proper duty has been paid. | Maximum INR 100 | Maximum INR 500 |
| Article 30 | Divorce, any instrument through which a person formally dissolves their marriage. | INR 100 | INR 500 |
| Article 38 | Letter of License, an agreement between a debtor and creditor wherein the creditor agrees to suspend claims for a specified period, allowing the debtor to continue their business at their discretion. | INR 100 | INR 500 |
| Article 44 | Note of protest by the ship master | INR 100 | INR 500 |
| Article 47(1)(b) | Partnership, including Limited Liability Partnership and Joint Venture, where the share contribution made in cash exceeds INR 50,000. | 1% of the amount of share contribution subject to maximum of INR 15,000. | 1% of the amount of share contribution subject to maximum of INR 50,000. |
| Article 49 | Protest of Bill or Note, a written statement by a Notary Public (or someone legally acting in that capacity) certifying the dishonor of a bill of exchange or promissory note. | INR 100 | INR 500 |
| Article 50 | Protest by the master of the ship, any declaration of the details of their voyage prepared by him for the purpose of adjusting losses or calculating averages, and any written declaration made by him against the charterers or consignees for failing to load or unload the ship, when such declaration is attested or certified by a Notary Public or other person lawfully acting in that role. | INR 100 | INR 500 |
| Article 52(a) | Release, ancestral property or part thereof. | INR 200 | INR 500 |
| Article 58(a) | Surrender of Lease, including an agreement for surrender of lease without any consideration. | INR 200 | INR 500 |
| Article 63 | Works contracts, that is, a contract for works and labour or services involving transfer of property in goods in its execution and includes a sub-contract. | ||
| 1. Up to 5 lakhs | INR 500 | INR 500 | |
| 2. Above Rs. 5 lakhs | INR 500 plus 0.1% of the amount above INR 10,00,000 subject to maximum of INR 25,00,000 | INR 500 plus 0.3% on the amount above INR 5,00,000 subject to maximum of INR 25,00,000 |
Stamp duty rates in Maharashtra vary based on several factors, primarily the location of the property and the gender of the buyer. Here’s a general overview:
Stamp duty rates can differ between major cities and other areas within Maharashtra. Here’s a breakdown for some key locations:
Varies between 3% to 5% of the property value, with reductions for family transfers and first-time buyers.
Property registration under the Maharashtra Stamp Act is an essential step that finalizes the ownership transfer. Stamp duty ensures that the document gains legal standing and is admissible in courts for resolving disputes.
Complying with the Maharashtra Stamp Act not only ensures smooth transactions but also maintains the credibility and transparency of the real estate sector.
Ensure the correct calculation of stamp duty based on the market value of the property or the agreement value, whichever is higher. This is crucial to avoid overpayment or penalties.
Always consult legal professionals or property lawyers to double-check the stamp duty calculation, applicable charges, and compliance requirements. This will minimize the risk of disputes or legal complications later.
Cross-verify that all necessary documents—including sale deeds, gift deeds, or lease agreements—are duly stamped and registered before signing any contract. Keeping a record of these documents ensures smooth property ownership transfers.
If you are a woman buyer or fall under any special category eligible for concessions, ensure you take full advantage of reduced rates. Understanding the latest provisions can help you save significantly.
Pay the stamp duty on time to avoid penalties. Make use of convenient payment modes such as e-stamping or authorized collection centers to streamline the process.
Adhering to the Maharashtra Stamp Act is vital for seamless property transactions. Beyond ensuring legal validity, proper compliance protects buyers and sellers from future disputes. To navigate the complexities of stamp duty registration charges in Pune or some other Maharashtra city, consulting legal experts is highly recommended. With the right guidance, owning your dream home becomes a hassle-free reality.
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The Maharashtra Stamp Act Bare Act is the legislation that governs stamp duty on various legal documents and transactions within the state, outlining rates, payment methods, and legal implications. It was originally called the Bombay Stamp Act.
Stamp duty in Maharashtra is calculated by multiplying the applicable rate by the higher transaction value or market value of the property. Rates vary based on location, property type, and buyer’s gender.
No, GST on stamp duty is not applicable. Stamp duty is a tax imposed by state governments on the transfer of property and is separate from GST, which is a tax on the supply of goods and services.
In Maharashtra, stamp duty validity in Maharashtra is not explicitly defined in terms of a specific time frame. Once stamp duty is paid on a document, it remains valid indefinitely, provided the document is executed within the state and follows the Maharashtra Stamp Act. However, it’s essential to ensure that the stamp paper is used within six months of its purchase to avoid legal issues.
Yes, GST on sales of property is applicable on the sale of under-construction properties at a rate of 12%. However, no GST is charged on completed or ready-to-sale properties, provided the Completion Certificate (CC) has been issued.
By Admin