Stamp Duty & Registration
A stamp duty of 5% is applicable and mandatory on flat purchases within the jurisdiction of Greater Mumbai Municipal Corporation and 6% on flat purchase within TMC judiciary limits, according to the Maharashtra stamp act 1958. 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 galas/office/shop premises and garage even if just used for car parking is 5% in Mumbai.
Procedure for Stamp Duty
The stamp duty amount is calculated for the flat purchaser as per the agreement value or market value, whichever is higher. Once the stamp duty amount is ascertained, the flat purchaser needs to prepare a pay-order addressed in favour 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.)
Registration of the Stamp duty paid agreement document is to record ownership of the flat.It is registered under the India Registration Act with the sub-registrar of Assurances, of the jurisdiction under which the property is located. The purchaser officially becomes the legal owner of the property, only after the title deeds are registered or recorded in his/her name.
Compulsory Registration of Documents - Section 17 of the Registration Act, 1908
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
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