A Complete Guide for Stamp Duty and Registration Charges in Mumbai

Apr 20, 2021 by

Importance of Stamp Duty Holiday Extension | Anthony Jones Properties

Buying a home is one of the biggest dreams one looks forward to achieving in life. And thanks to competitive home loan interest rates, a home purchase is now an achievable goal for anyone. However, even though you can finance your house with a home loan, it is still important to know where your money is being spent.

Mumbai is a much-preferred city for real estate, with millions of people turning up here for better career opportunities. If you wish to buy yourself a home in Mumbai, make sure you know the stamp duty and registration charges that would be levied on your home purchase.

Here’s a complete guide to stamp duty and registration charges in Mumbai:

What is stamp duty?

Stamp duty is a special charge imposed on the sale and purchase of the real estate. Stamp duty charges can differ from one place to another but generally fall between 4% and 8% of the property’s total market value. It is the buyer’s responsibility to pay the stamp duty.

What is a registration charge?

When you register your property, you must pay a registration charge. This normally amounts to 1% of the value of the house purchased, depending on the area. Just like the stamp duty, this is also paid by the buyer.

What are the stamp duty and registration charges in Mumbai?

If you buy a house in Mumbai, the stamp duty can amount to 4% (for women) or 5% of the market value of your home under the Maharashtra Stamp Duty Act. You will also be charged an additional 1% stamp duty than the rest of Maharashtra. The exact value of stamp duty can differ as per the locality of your home. These have been explained below:

  • If your house is within municipal limits, you have to pay 5% of the market value.
  • If your house is within municipal, panchayat, and cantonments limits within the Mumbai Metropolitan Region Development Authority (MMRDA), you have to pay 4% of the deal value.
  • If your house is within gram panchayat limits, you have to pay 3% of the deal value.

Make sure to account for these charges when you use a home loan EMI calculator to determine the right loan amount.

How to pay the stamp duty and registration charges in Mumbai?

The payment can be made to the Government Receipt Accounting System (GRAS). You can register online on the GRAS website and make an e-payment or a cash payment via your bank. You also need the following documents:

  • PAN Card of both parties
  • Details of the property, such as sale agreement, gift deed, etc.

To sum it up

Stamp duty and registration charges can affect your home’s price and ultimately play a crucial role in home loan eligibility. So, make sure to find out the applicable rates for the property you wish to invest in before applying for a home loan.

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