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The Maharashtra government has reduced the penalty for under payment of stamp duty by half – from two percent to one percent- with the aim of earning a revenue of โน200 crore. The government has also increased the period within which buyers can claim reimbursement of stamp duty paid on cancelled deeds for flats.
Here are five things that homebuyers should know.
1 All about Maharashtra government’s recent decision to reduce penalty on under payment of stamp duty
There have been instances where homebuyers have paid lesser stamp duty and are charged a hefty penalty for doing so. To ensure that the government recovers its dues, finance minister Ajit Pawar had announced a scheme in the Maharashtra Interim Budget 2024-25 for homebuyers who have paid less stamp duty on the registered documents. Under the scheme, the penalty levied on the difference in stamp duty amount from the date of execution of the document will be reduced from two percent to one percent per month.
The Maharashtra assembly has now passed a bill amending the Maharashtra Stamp Act in order to reduce the penalty from two percent to one percent.
2 Time limit for claiming refund for stamp duty paid in excess extended by Maharashtra govt
While there have been instances of homebuyers paying less stamp duty, there have also been situations where homebuyers have paid stamp duty in excess. If a homebuyer has paid stamp duty in excess, he or she has a time frame of six months to claim for reimbursement.
However, the Maharashtra government has now extended the time limit for claiming the refund for stamp duty paid in excess by a year instead of six months earlier.
Also Read: Maharashtra government extends stamp duty amnesty scheme until June 2024 providing relief to property owners
3 Stamp duty slabs in Maharashtra
The current stamp duty slab in Maharashtra is between 5% to 7% of the total agreement value in different cities. However, the stamp duty ratio differs from city to city.
Apart from stamp duty, homebuyers also have to pay a registration fee at the time of purchasing the property. The registration fee is one percent of the total agreement value in case the property cost is up to โน30 lakh. For properties above โน30 lakh, the registration fee is fixed at โน30,000 across Maharashtra.
4 Women homebuyers get 1% stamp duty concession for purchasing residential property
Women homebuyers in Maharashtra get a 1% waiver on the total stamp duty amount.
But the caveat is that the property has to be purchased under the name of the woman. If it is purchased under the names of both the female and the male homebuyers, the 1% stamp duty concession is not applicable.
Also Read: Maharashtra Budget 2024 allocates โน7425 crore for construction of 35 lakh affordable homes
5 Stamp duty collection in Maharashtra
The revenue collected from stamp duty paid by property buyers across Maharashtra crossed the โน50,400 crore- mark in the financial year 2023-24. This was a 13% increase in stamp duty collection compared to over โน44,000 crore in the financial year of 2022-23.
Also Read: 5 orders passed by MahaRERA to safeguard homebuyersโ interests in Maharashtra
According to the Maharashtra government officials, the highest stamp duty collection in Maharashtra was reported from Mumbai, Pune and Nagpur.
