Stamp Duty & Registration
As per Maharashtra stamp act 1958, the purchaser must pay a 5% stamp duty on the purchase of any flat within the judiciary limits of Municipal corporation act of greater Mumbai and 6% for within the limit of TMC. Without the payment of this stamp duty, your solicitor will not be able to officially register your new house in your name, even when the house is transferred within the family.
The rate of stamp duty for shops/galas/office premises and garage even if just used for car parking is 5% in Mumbai.
Procedure for Stamp Duty
When the flat purchaser desires to enter into an agreement, the stamp duty amount is calculated for him/her as per the agreement value or market value, whichever is higher. Once the stamp duty amount is given to the flat purchasers, they need to get the pay-order, which will be addressed in favor of “SUPERINTENDENT OF STAMPS, Mumbai”. The pay-order is given for franking of the agreement. Later, the said agreement is duly filled and signed by the respective parties.
The Stamp Duty Offices in Mumbai
The Superintendent of Stamps
General Stamp Office,
Ground Floor, Town Hall Building,
Shahid Bhagatsingh Road, Fort,
Mumbai 400 023
Ph: 266 4589, 266 4585
Office of the Superintendent of Stamps
First Floor, B.M.R.D.A. Building,
Mumbai 400 051
Ph: 645 1894
Collector’s Office Compound,
Thane (West) 400 601
(The Thane stamp office is open on Tuesdays and Fridays only and is closed on the 18th of each month for accounts. If the 18th happens to be Tuesday or Friday, the office is opened on the next working day.)
The stamp duty paid document has to be registered under the Indian Registration Act with the sub-registrar of Assurances, of the jurisdiction where the property is situated. The basic purpose of registration is to record the ownership of the flat. Until the title deeds in your name are registered or recorded, you are not officially the legal owner of the house.
Compulsory Registration of Documents – Section 17 of the Registration Act, 1908
- Registration Procedure
For registration, the original document printed on one side along with two photocopies of the original; have to be submitted to the registering officer. The registration procedure also requires the presence of two witnesses and the payment of the appropriate registration fees.
- On Completion of Procedure
A receipt bearing a distinct serial number is issued. The following requirements for completing the registration are usually stated on the receipt:
- Market value of the property
- Income-tax clearance; i.e., N.O.C. under Section 269 UL (3) issued by the appropriate authority constituted under chapter XX-C of the Income Tax Act, 1961, if the same is applicable
- Registration Fee
The registration fee currently fixed for registering documents relating to property transactions is approximately 1% of the market value or agreement value, whichever is higher, subject to Maximum of Rs.30,000/-. The registration fee for the following immovable property transactions is levied on the market value of property on which stamp duty is charged:
- Transfer of lease by way of assignment
- Power of attorney given for consideration
- Authorization to the attorney to sell the property