Maharashtra: State Cabinet Reduces Stamp Duty On Property Loans

Pune, December 10, 2020: The Maharashtra government has planned to reduce the stamp duty and bring uniformity in the agreements for the registration of loans for properties– a decision on this was made at the cabinet meeting on Wednesday. This will enable ordinary citizens, slum dwellers, farmers as well as other unorganised entities who do not have a registered deed but have proof of 7/12 or income certificate to pay less stamp duty on the title deed of their property.

It is observed that due to different stamp duty charges on different bank-related documents, there have been some discrepancies in collecting stamp-duty fees. To curb this, the rate of stamp duty levied on a bank-related deposit of title deed or equitable mortgage or hypothecation instrument is 0.3 percent instead of 0.2 percent; 0.5 percent instead of 0.3 percent. As a result, the cabinet has decided to levy a uniform stamp duty on bank-related documents, as well as Rs 15,000 for online registration of documents or online filing of notices.

In addition, the documents contain a variety of items– stamp duty is levied on those documents as well. The state cabinet has also decided to amend various clauses or different transfers and transactions in that section with retrospective effect as per the Supreme Court’s judgment relating to stamp duty charges on mortgages of loans given by a group of banks.