Stamp Duty Payable on Agreement in Maharashtra: Everything You Need to Know
If you are a resident of Maharashtra and are planning to purchase a property, it is important to be aware of the stamp duty payable on agreements. The stamp duty is a type of tax levied by the state government on the transfer of property ownership. This article will provide you with an overview of the stamp duty payable on agreement in Maharashtra.
What is Stamp Duty?
Stamp duty is a type of tax paid by the buyer of a property to the government. It is levied on the value of the property or the transaction amount mentioned in the agreement, whichever is higher. Once the stamp duty is paid, the agreement is considered to be legally valid.
The Maharashtra Stamp Act, 1958
The Maharashtra Stamp Act, 1958 governs the stamp duty payable on agreements in Maharashtra. According to the act, the stamp duty payable on an agreement for the sale of immovable property is 5% of the market value of the property or the agreement value, whichever is higher.
However, if the property is located in a rural area, the stamp duty payable is 4% of the market value or the agreement value, whichever is higher. It`s important to note that the market value of the property is determined by the state government and is subject to periodic revisions.
In addition to stamp duty, there are also registration fees and other charges that need to be paid at the time of registration.
Who Pays the Stamp Duty?
The stamp duty is usually paid by the buyer of the property. However, in some cases, the seller and the buyer may agree to divide the cost of stamp duty between them.
When is the Stamp Duty Paid?
The stamp duty is paid at the time of registration of the agreement. The agreement must be registered within four months from the date of execution. If the agreement is not registered within the stipulated time, a penalty of 2% per month is levied on the stamp duty payable.
What Documents are Required for Payment of Stamp Duty?
The following documents are required for payment of stamp duty:
1. The agreement to be stamped
2. PAN card of the buyer and seller
3. Identity proof of the buyer and seller
4. Copy of the property card or 7/12 extract
5. Power of attorney, if any
6. Payment of stamp duty and registration fees
Conclusion
In conclusion, stamp duty payable on agreement in Maharashtra is an important aspect that needs to be considered while purchasing a property. The stamp duty is a tax paid by the buyer of the property to the government and is calculated on the market value of the property or the agreement value, whichever is higher. It`s important to know the stamp duty payable and the documents required for payment of stamp duty to ensure a smooth registration process.