Property Stamp Duty and Registration Charges in Mumbai
When a person buys property, there are several other charges that are associated with the property. Some of the important charges that are involved while buying property include registration charges, stamp duties, service charges and value added taxes. Out of these, the most important charges are registration charges and stamp duty.
Charges in Mumbai
Registration charges and stamp duty vary across different states. Usually, the same charges apply to all the cities across the state. As such, in the city of Mumbai, the following are the standard charges applicable.
a) Registration charges
Registration charge in Mumbai is 1 per cent of the total value of the property. This means that if the property is registered for more than Rs 60 lakh, the registration charge will remain Rs 30,000.
b) Stamp duty
Stamp duty in Mumbai varies according to the civic authority’s limits. The stamp duty is 5 per cent of the total cost of the property if the property is within the municipal corporation’s limits, 4 per cent if it is within the municipal council’s limits and 3 per cent if the property is within the gram panchayat’s boundaries. This takes into account the value of the property shown on the paper, or the ready reckoner (RR) rates defined by the government, whichever is higher.
What are Registration and Stamp Duty charges?
Registration charges
Registration charge is one of the main charges to be paid by the purchaser at the time of registering a property. Registration charges are charged as per the value of the property.
Stamp duty
Stamp duty is a tax collected by the government for transaction of a property under its jurisdiction. The stamp duty takes into account various factors such as the property being freehold or leasehold, the land parcel applicable to the purchaser in case of a multi-storeyed apartment, the ready reckoner rates (RR rates) and the agreement value (as a rule, agreement value should be at least equal to the ready reckoner prices stated by the government). The final stamp duty is calculated after taking into account these factors. The stamp duty is paid by the purchaser.
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