Are you planning to buy a house in Mumbai? If yes, you may want to keep an eye on the latest stamp duty and registration charges. Buying a house can come with some additional expenses, and understanding what these charges are can help you plan for your home loan and other aspects of the purchase more conclusively.
In a place like India, you have to pay tax to the government when you earn an income or acquire an asset. When you buy a house or someone sells a house to you, there is a change in ownership. This change is accompanied by taxes like the stamp duty and the registration charge that is paid to the government.
Let’s find out the details of stamp duty and registration charges for 2022.
What is a registration charge?
The registration charge is another charge levied by the government on the sale of a property. You have to pay the registration charge when you register your property. It is levied at 1% of the total cost of the land if the property costs ₹30 lakhs or less. For properties valued at more than ₹30 lakhs, the registration charge is capped at a limit of ₹30,000.
What is stamp duty?
You are liable to pay stamp duty in Maharashtra under the Maharashtra Stamp Duty Act when you buy a house. This is an extra charge that the government imposes on the purchase and sale of all properties in the state. However, the responsibility of paying the stamp duty is on the buyer and not the seller.
The exact value of the stamp duty charges is calculated on the basis of the following factors:
- The type of property, such as residential or commercial
- The locality or area the property is located at
- The jurisdiction of the property, such as urban or rural
- The total market value of the property
- The age of the buyer
- The gender of the buyer (women get a concession of 1%)
Here are the stamp duty rates in Mumbai:
| Jurisdiction of the property | Stamp duty rate |
| If the property is within the municipal limits of an urban area | 5% of the land’s market value |
| If the property is within the limits of a cantonment, municipal council, or panchayat of any area within MMRDA | 4% of the land’s market value |
| If the property is within the limits of a gram panchayat | 3% of the land’s market value |
Additionally, the government has announced a 1% metro cess to be levied from April 1, 2022, in Mumbai, Pune, Thane, Navi Mumbai, Nashik, and Nagpur.
How to calculate the stamp duty and registration charges in Thane and Mumbai?
Thane and Mumbai are two of the most sought-after locations for house buyers in not only Maharashtra but also all over India. The employment opportunities, the standard of living, proximity to schools, hospitals, markets, and more in these two areas is nothing short of remarkable. These localities are ideal for families, couples, and singles, complimented by luxury properties from luxury real-estate developers Piramal Realty projects.
You can use an online calculator to calculate the stamp duty and registration charges in Thane and Mumbai. You just have to enter the property’s value, your gender, the area, and the calculator will percentage and rate of stamp duty and the registration charge for your purchase. Accordingly, you can then plan your finances, such as the home loan.
To sum it up
The stamp duty in Maharashtra, along with the registration, can impact the total cost of the house, so make sure to account for them in your financial plan. Also, remember that these may seem like an added expense but are only paid one time and can be covered with a home loan.