When you decide to invest in a property, commercial, residential, or other; it is not just possession from the previous owner that you require. In order to become the lawful owner of a property, you need to have government-approved evidence of the property. When you sign on a particular property ownership document, you need to pay tax for it to the government. This confirms your ownership. The tax that you pay here is called stamp duty.

The stamp duty is payable while the time all legal documents are signed and approved by both the parties and present government officials. Stamp Duty is dependent on multiple factors, like the type of property (commercial/residential) (old/new), current market value, etc.

Stamp duty is payable by both parties equally. If you fail to pay stamp duty on time, it invites penalty charges.

Stamp Duty in Maharashtra

The Maharashtra Stamp Act was passed in 1958. Under this act, as mentioned in Schedule 1 all the payables of the stamp duty shall go to the state government. The act was amended recently and has put forward many updates. A few updates include reduction in stamp duty in gift deeds, online portals for payment, revision of penalty clauses, etc.

Recently the government has announced that the stamp duty will increase Post March 2022.

Here’s what you should know about the change in the act and the increasing stamp duty:

Following this additional cess, the stamp duty will increase further. Currently, the stamp duty on property purchase is five per cent, and four per cent for women homebuyers. Meaning, the Metro cess will increase stamp duty to six per cent and five per cent subsequently.

Meanwhile, on March 11 the state government will table the budget for the financial year 2022-23. Therefore, the incentives for real estate stakeholders and homebuyers are being looked at.

Lower stamp duty percentage for women:

According to the 2021-22 budget passed by Mr. Ajit Pawar, there will be a concession of 1% on prevailing real estate stamp duty for any property purchase. This low stamp duty will only apply if the transfer of house property or registration is done by a female.