Owning a residential property, and building a home for the family, is the culmination of dreams and aspirations for most Mumbaikars. The process involves a number of complex decisions like selecting location and amenities, securing financing, and verifying documents. The final but perhaps the most crucial stage of this homebuying sojourn is registering the property and paying the stamp duty.
The Bombay Stamp Act 1958, or the Maharashtra Stamp Act, makes a flat or apartment in Mumbai and any property in Mumbai suburbs chargeable with stamp duty.
The current stamp duty in Mumbai depends on the location of the property, the value of the property, and the gender of the owner. Here is a ready reckoner that you can use to determine the amount that needs to be paid –
|Areas in Mumbai||Stamp Duty For Men||Stamp Duty For Women||Registration Charges|
|Within the municipal limits||6% of property value||5% of property value||1% of property value|
|Within municipal council/ panchayat/ cantonment
area within MMRDA
|4% of property value||3% of property value||1% of property value|
|Within gram panchayat||3% of property value||2% of property value||1% of property value|
Stamp duty waiver on resale: One of the key factors that home buyers should consider is the stamp duty waiver available on the resale of the property. In March 2022, the Maharashtra government passed a bill that permitted real estate investors to avail of an extended stamp duty waiver on the resale of a property purchase. This means that any property that is resold within three years of purchase is eligible for such a waiver. As a result, homebuyers only need to pay the difference in the price of the property and not the complete amount in such cases.
Income tax exemption on stamp duty: Under section 80C of the Income Tax Act, homeowners can avail of an income tax benefit up to Rs 1,50,000 on stamp duty and registration fees. Joint owners can claim benefits appropriate to their share in the property, and this too, is capped at a total deduction of Rs 1,50,000.
The office of the Inspector General of Registration and Controller of Stamps (IGR) offers homebuyers services such as property valuation, computation of property tax and stamp duty, and payment of stamp duty. Property registration can be done at the relevant Sub-Registrar's office in Mumbai. Here's what you need to do to register your property in Mumbai and pay stamp duty.
Navigating through the maze of documentation, registration, and stamp duty payments can often be stressful and difficult for first-time homeowners.
Blox offers the expertise of dedicated relationship managers who will help you understand and comply with the mandatory registration process without any hassles. Buying and registering your home should be a joyful experience, and your Blox RM will ensure this.
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Owning a residential property in Mumbai is a significant accomplishment, both personally and financially. Real estate properties are always in high demand, and it is a dream for every Mumbaikar to own one. However, it is crucial to register your property to establish your legal ownership of it. By paying the registration fee and stamp duty and completing the registration process, you ensure that you are the legal owner of the property.