A Guide to Understanding Stamp Duty and Registration in Mumbai

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.

Current Stamp Duty in Mumbai

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 –

Points To Remember:

• The 1% rebate offered to women on the stamp duty of the property is not applicable in case of joint ownership with men
• The stamp duty on properties acquired through Gift Deeds is different
• The stamp duty on Gift Deeds in Mumbai is pegged at 3% of the 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.

How to register and pay stamp duty on your property in Mumbai? 

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.

• Collect the property registration form from the relevant Sub-Registrar's office
• Fill in the property details and submit for verification.
• Once the sub-registrar's office verifies the application, you will need to make the registration and stamp duty payment. You can do this online.
• Following the payment, you will receive a receipt and be provided with your property registration number.

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.