How Are Stamp Duty and Registration Charges Calculated on Property in Thane?

Located on the northeast portion of Salsette Island, Thane has emerged as one of the hotspots for industrial, IT, and real estate sectors. Falling under the MMR region, the city of lakes boasts a population of over 25 lakhs, stretching an estimated 147 sq km. The neighbouring Mumbai city has an abundance of lakes and green areas, making it the ideal place for those wanting a break from the hustle and bustle of the Maximum City.

According to reports, there has been an average increase of 13% in the real estate prices of the MMR region. Thane witnessed a 25% increase, with the price per carpet area being above ₹19,000. Nonetheless, Lake City continues to experience high demand for real estate, with top developers capitalising on the situation as, unlike Mumbai, space is no constraint in Thane.

While there are enough reasons to buy a house in Mumbai’s elder sister, one needs to pay special attention to the documentation processes, especially concerning the stamp duty and registration charges in Thane, be it the rates, factors involved, calculations or the process to pay.

Stamp Duty and Registration Charges in Thane

Referred to as the tax levied on a single property, Stamp Duty serves as the evidence for the sale or purchase of a property. The Maharashtra Act of 1956 states it is mandatory to pay stamp duty and registration charges in Thane.

The current stamp duty rates for Thane are as follows.

Calculating Stamp Duty
Calculated on the value of the property for which the state of Maharashtra currently charges 6%. For example, a 2BHK house in Thane has an area of 850 sq ft, with the rate being ₹14,000 per sq ft. Therefore the property's value is 850 X 14000 =  ₹11,900,000 ( ₹1.9 crores). Now, as the stamp duty in Thane is 6%, it will be calculated as 6% of 11,900,000, which is 7,14,000 (7.14 lakhs).

Registration charges
Compulsory under the Maharashtra Stamp Act 1956 refer to registering the property by the buyer in their name at the registrar’s office for which the government charges a fee. The current registration charges in Thane are as follows.

Ways to pay stamp duty and registration charges in Thane

There are two ways of paying stamp duty and registration charges, offline and online.
Going the traditional way of making the payment, one needs the physical stamp paper or franking. One can simply visit the Government Receipt Accounting System (GRAS) when making an online payment.

Factors affecting stamp duty and registration charges in Thane​

• Value of property 
• Ready Reckoner Rates
• Location of property
• Property type
• Gender

Reasons for stamp duty and registration charges being important.

• Important document to declare the buyer as the legal owner of the property.
• Serving as proof of ownership, admissible in court.
• Protects buyer’s interests.
• Present in government records.

With the everchanging and dynamic nature of the real estate sector, buyers should build an effective action plan, with the documentation process playing a pivotal role.