Before you apply for a home loan, it is best that you know about the stamp duty and registration charges in Mumbai city. You must include these charges when you are considering the cost of the property that you want to buy. The city of Mumbai was made exempt from the hike in the state of one percent for stamp duty in the year 2017, but in the same year, the municipal corporation of Mumbai city passed a bill to charge 1% surcharge on stamp duty for property buyers in Mumbai only. The total stamp duty in Mumbai has now been raised to 6% with an additional 30000 INR for registration charges.

Gift Deed Stamp Duty in Mumbai

Recently, the increase of stamp duty on gift deeds has been cancelled by the government. The Maharashtra Stamp Duty act was amended to increase the stamp duty on gift deeds to 3% of a property’s market value. The current stamp duty stands at 500 INR. Previously, there was an approved stamp duty of 3% on pre-existing ready reckoner rates for gift deed transactions in cases where the property was to blood relations like husband, children, sister, and wife.

Zero Hike in Mumbai Ready Reckoner Rates

The government of Maharashtra has stopped any hike for stamp duty ready reckoner rates in Mumbai. A property’s market value is the ready reckoner rate, which the government determines in order to estimate the stamp duty. Also, the rates for conveyance deed stamp duty in Mumbai remain the same, while other areas have seen an increase of 1%.

Stamp Duty and Registration Charges in Mumbai

The current registration charges for residential property purchases is 30000 INR. The stamp duty is taken at a standard 6% in all of Maharashtra except Mumbai, which has an extra 1% surcharge for property buyers.

Stamp Duty for Conveyance Deed

4% of the land value is what you need to pay in gram panchayat regions, which is an increase from the previous 3%. The stamp duty has also gone up from 4% to 5% in areas that are under municipal councils.

Calculating Stamp Duty and Registration Charges on Property

The seller of the flat and the buyer enter into an agreement and the stamp duty is calculated according to the agreement value. This value should not exceed the ready reckoner rate or the value set as a guideline by the government. Sometimes, the agreement value is the same as the market value, but the stamp duty takes whichever is higher. Once this computation is done, the buyer has to take out a pay order in favor of the Stamps and Registration Department. The final step is where both the parties have to be present and sign the agreement in front of the registrar to complete the transaction of sale of the property.

When you are thinking of buying any property in Mumbai, factor in all these charges and you should be in a good position to ahead with the purchase