Agreement Stamp Duty in Maharashtra: All You Need to Know
If you are planning to purchase or sell a property in Maharashtra, you will need to pay agreement stamp duty as per the state`s regulations. In this article, we will explain everything you need to know about agreement stamp duty in Maharashtra.
What is Agreement Stamp Duty?
Agreement stamp duty is a type of tax that is paid by the buyer or seller to the government when an agreement of sale or transfer of a property is made. The agreement stamp duty varies from state to state and is a compulsory payment that must be made to complete the transaction.
What is the Stamp Duty Rate in Maharashtra?
In Maharashtra, the agreement stamp duty is calculated based on the market value of the property. The rate of stamp duty varies for residential and commercial properties.
For residential properties, the stamp duty rate is as follows:
– Up to Rs. 25 lakhs: 2%
– Between Rs. 25 lakhs to Rs. 50 lakhs: 3%
– Above Rs. 50 lakhs: 4%
For commercial properties, the stamp duty rate is a flat 5%.
Additionally, there is a 1% surcharge on the stamp duty for properties located in urban areas, and a 2% surcharge for properties located in rural areas.
Who Pays Agreement Stamp Duty in Maharashtra?
As per the Maharashtra Stamp Act, the agreement stamp duty is payable by the buyer or the transferee. However, in cases where the parties agree, the buyer and the seller can share the stamp duty payment.
When is Agreement Stamp Duty Paid?
The agreement stamp duty must be paid before or at the time of the execution of the sale agreement. The stamp duty can be paid via cash, demand draft, or online mode.
Penalties for Non-Payment of Agreement Stamp Duty
If the agreement stamp duty is not paid on time, the parties may have to face penalties. The penalty for the non-payment of stamp duty is 2% per month on the deficit amount of the stamp duty.
Conclusion
Agreement stamp duty is a crucial tax that must be paid to the government when buying or selling a property in Maharashtra. The stamp duty rate varies depending on the type of property and its value. Make sure to pay the agreement stamp duty on time to avoid any legal complications or penalties.