Stamp Duty and Registration Charges in Mumbai

September 1, 2024 | 74 views

Stamp Duty and Registration Fees in Mumbai



Considered one of the most expensive real estate markets in the world, potential buyers face a variety of costs when considering purchasing a property in Mumbai.



In addition to the purchase price itself, there are several additional costs that can surprise buyers. The most important of these is the stamp duty in Mumbai, which significantly increases the total outlay of a home purchase.



What is stamp duty? Explained!

Stamp duty is a type of tax that individuals must pay to the Indian government for any transaction involving real estate. You need to register the property in your name in the local municipal register, which requires the payment of stamp duty. This tax is mandatory under Section 3 of the Indian Stamp Act, 1899. The Maharashtra government has recently changed the rates of stamp duty.

Stamp Duty and Registration Charges in Mumbai in 2024

It is essential for homebuyers to consider the current stamp duty and registration fees for property in Mumbai before planning a property purchase:


	

		

			

			
Areas in Mumbai
			
			

			
Stamp Duty Rates for Women
			
			

			
Stamp Duty Rates for Men
			
			

			
Registration Fees in Mumbai
			
		
		

			

			
Inside the boundaries of an urban municipality
			
			

			
5%
			
			

			
6%
			
			

			
1%
			
		
		

			

			
Within the jurisdiction of a municipal council/panchayat/cantonment in the MMRDA region
			
			

			
3%
			
			

			
4%
			
			

			
1%
			
		
		

			

			
Within the boundaries of a gram panchayat
			
			

			
2%
			
			

			
3%
			
			

			
1%
			
		
	


Current Stamp Duty in Mumbai: Area-wise


	

		

			
Area in Mumbai
			
Stamp Duty
			
Registration Charges in Mumbai
		
		

			
South Mumbai
			
5% + 1% metro cess
			
1%
		
		

			
Central Mumbai
			
5% + 1% metro cess
			
1%
		
		

			
Western Mumbai
			
5% + 1% metro cess
			
1%
		
		

			
Harbour
			
5% + 1% metro cess
			
1%
		
		

			
Thane
			
5% + 1% metro cess
			
1%
		
		

			
Navi Mumbai
			
5% + 1% metro cess
			
1%
		
	


 

Property/Flat Registration Charges in Mumbai in 2024


	

		

			
Property Buyer
			
Stamp Duty Rates
			
Flat/House Registration Charges in Mumbai
		
		

			
Men
			
6%
			
30,000 for properties above ₹30,00,000 1% of the total value of the property for properties below ₹30,00,000
		
		

			
Women
			
5%
		
	


How is the Mumbai Stamp Duty Rate Calculated?

Stamp duty on property in Mumbai is determined by the transaction value in the sale and purchase agreement. In Mumbai, properties cannot be sold below the Ready Reckoner (RR) rates set by the government. The value of the property is calculated based on these rates for stamp duty purposes.



If the registered price of the property is higher than the RR rates, the buyer pays stamp duty on the higher amount. If it is lower, stamp duty in Mumbai is calculated based on the RR rates. To calculate stamp duty and registration fee in Mumbai, it is important to know the RR rates. This ensures fairness in real estate transactions and compliance with government regulations.



Notice:



To buy a house in Mumbai that you can move into within 2 years, you have to pay 2% stamp duty and 1% registration tax. Stamp duty and registration fee for resold apartments in Mumbai remain the same.

Stamp duty on rental agreements in Mumbai is fixed by the Bombay Stamp Act, 1958. Stamp duty and rental registration fee in Mumbai is 0.25% of the total rent for the specified period.

Documents required to buy property in Mumbai

Purchase Agreement: A pre-contract that sets out the terms and conditions of the sale of the property.

Purchase Deed: A legal document that transfers ownership of the property from the seller to the buyer.

Encumbrance Certificate: A certificate that proves the property is free of any legal or financial encumbrances.

Property Tax Receipt: A document that proves property taxes have been paid up to current levels. No Objection Certificate (NOC): A certificate from the relevant authority stating that there are no objections to the sale of the property.

Power of Attorney (if applicable): Legal authority authorising one person to act on behalf of another in a real estate transaction.

Proof of Payment of Stamp Duty and Registration Fees: A document confirming payment of stamp duty and registration fees.

Certificate of Occupancy (for new buildings): A certificate from the local authority confirming that the property is habitable.

Completion Certificate (for buildings under construction): A certificate stating that the construction of the property has been completed in accordance with regulations. TDS Deduction Certificate (for properties valued at Rs 50 million and above): A certificate evidencing deduction of tax at source as per Income Tax Rules.

Buyer and Seller PAN Cards: Permanent Account Numbers of the buyer and seller required for financial transactions.

Buyer and Seller Aadhaar Cards: Government issued ID which acts as proof of identity and address.

Buyer and Seller Passport Photos: Photographs of both the parties for documentation purpose.

Proof of Identity of Buyer, Seller and Witnesses: Valid identity documents like driving license, passport, voter ID card etc. A. Proof of Address by Buyer, Seller and Witness: A document verifying the address of the home. B. Electricity Bill or Rental Agreement.



Conclusion

Understanding stamp duty for buying an apartment in Mumbai is crucial while dealing with Mumbai real estate. These fees are linked to the property value and government regulations, ensuring legality and transparency in the transaction.



 


 

 

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