Forecasted to contribute 13% of India’s GDP by 2025, the real estate industry has experienced a considerable shift in its dynamics over the last decade. Modern architecture, amenities, and improving lifestyle choices have made developers revisit the drawing board. Known as a saving economy, buyers take their sweet time when it comes to investing in real estate, following a series of steps, some of them being the following.
- Budget
- Location/Connectivity
- Legal documents (Stamp Duty and Registration Fee)
- Home loan and mortgage
- Resale value
Though buying a house continues to be an extensive process, modern technology has made things better and quicker. However, in this blog, we’ll discuss the aspect of legal documents when it comes to buying a house, such as a stamp duty and how to pay them. Firstly, let’s understand the meaning of the term and its importance.
What is Stamp Duty?
Stamp duty is a tax levied by the government, acting as evidence for any sale or purchase of a property. A state subject, the rate of duty varies from state to state, with 5% for men and 4% for women in Maharashtra.
What is E stamp Paper?
Simply put, E stamp paper is a process of paying your stamp duty online to the government, known as electronic payment. The concerned authorities have successfully evolved, replacing the traditional paper and franklin stamping system with an online one. As of today, serving 22 states, the govt launched this service in 2013. An individual need not visit the sub-registrar’s office anymore, using the e stamp method to pay government non-judicial stamp duty electronically.
Benefits of E stamping
- Minimising fraud and errors during offline payments.
- Offers more convenience.
- Time-saving as the stamp paper gets generated within minutes.
- With a unique identifying number (UIN) present, the e stamp certificate cannot be altered.
- Using inquire mode, the authenticity of the e stamp can be verified.
- Data can be saved within SCHIL.
- Tamper proof and no additional charges.
How to pay E Stamp duty online in Maharashtra?
Step 1: Visit the official website https://gras.mahakosh.gov.in/igr/
Step 2: Click on the pay without registration tab on the homepage
Step 3: Click on the pay ‘Make payment to register your documents’
Step 4: Fill in your details, district, payer’s name, pan number, property details, property value, and process of payment.
Step 5: As the final step, generate the challan required at the time of execution of the deed.
Different modes of paying E Stamp
- Cash
- Demand draft
- NEFT
- Pay order
- RTGS
- Account-to-account transfer
Factors affecting stamp duty charges in Maharashtra
- Nature of property: The fees are usually lower in the case of residential properties over commercial ones.
- Age of the property: The age of the real estate unit plays a vital role in evaluating the stamp duty charges, as the older the property, the lower the stamp duty.
- Buyer’s age: If the buyer is a senior citizen, they may get a lower stamp duty rate in Maharashtra.
- Property’s location: An crucial factor in determining the stamp duty rate, the site of a property could increase or decrease charges, given its dependency on the Ready Reckoner Rate.
- Gender of the buyer: Similar to senior citizens, women in Maharashtra are eligible for a reduced stamp duty rate if purchasing the house in their name.
Hopefully, the above blog solves all your doubts regarding the concept of e stamp paper, its payment, and its associated factors. As technology continues to make life easier, the real estate industry hopes to simplify buying a home for every citizen.
