Mumbai, 19th June 2021: After making the stamp duty levied on both Equitable Mortgage and Simple Mortgage equal, the Maharashtra State Government has now decided to give concession in their registration fee. The registration fee for both types of mortgages used to be a maximum of one per cent or Rs 30,000. It will now be charged half a per cent or Rs 15,000.
There are different types of mortgages; equitable mortgages and simple mortgages are the most used. Earlier, stamp duty was 0.2 per cent for equitable mortgages and 0.5 per cent for simple mortgages. This often confused the citizens. From that, people often have to go to the sub-register office for help.
For a simple mortgage, a loan of less than Rs 5 lakh, with a loan of 0.1 per cent and above, would be subject to 0.5 per cent stamp duty. The simple mortgage factor works mainly in the unorganized sector. So they had to pay extra stamp duty. Taking all these factors into consideration, the government has ordered a total stamp duty of 0.3 per cent on both types of mortgages. This brought relief to the citizens.
About five to six lakh such mortgages are transacted every year. The government has removed the ambiguity in the stamp duty levied on both these mortgages. Subsequently, a registration fee used to be one per cent of the total amount or a maximum of Rs 30,000. It has been approved to deduct a maximum of half a per cent or Rs 15,000.
Shridhar Dube Patil, Joint Secretary, Revenue Department, has issued orders to reduce the registration fee. Citizens will be relieved as the registration fee has been reduced along with the stamp duty. It will also help increase the revenue of the registration and stamp duty department.
In the last two years, more than six lakh mortgages have been filed and the state has received close to Rs 2190 crore in revenue.
