Stamp Duty & Registration
As per the Bombay Stamp Act, 1958, the purchaser must pay a 5% stamp duty on the purchase of any flat. Without the payment of this stamp duty, your solicitor will not be able to officially register your new house in your name, even when the house is transferred within the family.
- Stamp Duty for Flats
Present rates of stamp duty for residential premises in Mumbai above Rs. 5,00,000/- is Rs.7650/- plus 5%
- Stamp Duty for Shops/ Galas/ Office Premises and Garage The rate of stamp duty for shops/galas/office premises and garage even if just used for car parking is 5% in Mumbai.
- Procedure for Stamp Duty
When the flat purchaser desires to enter into an agreement, the stamp duty amount is calculated for him/her as per the agreement value or market value, whichever is higher. Once the stamp duty amount is given to the flat purchasers, they need to get the pay-order, which will be addressed in favour of "SUPERINTENDENT OF STAMPS, MUMBAI". The pay-order is given for franking of the agreement. Later, the said agreement is duly filled and signed by the respective parties.
- The Stamp Duty Offices in Mumbai
The Superintendent of Stamps
General Stamp Office,
Ground Floor, Town Hall Building,
Shahid Bhagatsingh Road, Fort,
Mumbai 400 023
Ph: 266 4589, 266 4585
Office of the Superintendent of Stamps
First Floor, B.M.R.D.A. Building,
Mumbai 400 051
Ph: 645 1894
Collector's Office Compound,
Thane (West) 400 601
(The Thane stamp office is open on Tuesdays and Fridays only and is closed on the 18th of each month for accounts. If the 18th happens to be Tuesday or Friday, the office is opened on the next working day.)
The stamp duty paid document has to be registered under the Indian Registration Act with the sub-registrar of Assurances, of the jurisdiction where the property is situated. The basic purpose of registration is to record the ownership of the flat. Until the title deeds in your name are registered or recorded, you are not officially the legal owner of the house.
Compulsory Registration of Documents - Section 17 of the Registration Act, 1908
- Registration Procedure
For registration, the original document printed on one side along with two photocopies of the original, have to be submitted to the registering officer. The registration procedure also requires the presence of two witnesses and the payment of the appropriate registration fees.
- On Completion of Procedure
A receipt bearing a distinct serial number is issued. The following requirements for completing the registration are usually stated on the receipt:
- Market value of the property
- Income-tax clearance; i.e., N.O.C. under Section 269 UL (3) issued by the appropriate authority constituted under chapter XX-C of the Income Tax Act, 1961, if the same is applicable
- Registration Fee
The registration fee currently fixed for registering documents relating to property transactions is approximately 1% of the market value or agreement value, whichever is higher, subject to Maximum of Rs.30,000/-. The registration fee for the following immovable property transactions is leviable on the market value of property on which stamp duty is charged:
- Transfer of lease by way of assignment
- Power of attorney given for consideration
- Authorization to the attorney to sell the property
- Person's Entitled
Section 32 of the Registration Act, 1908, deals with the provisions relating to the presenting of documents for registration by a person. Subject to certain exceptions, every document, which is to be registered under the provisions of the Act, should be presented at the proper registration office by:
- The concerned person himself/herself or
- The representative or the agent of such a person duly authorized by a power of attorney.
- Consequences of Non-Registration of a document
According to Section 49(c) of the Act, if a document, of which registration is compulsory under Section 17 of the Registration Act, has not been registered, it cannot be produced as evidence in a court of law.
Time permitted for registration of a document Under Section 23 of the Act, subject to certain exceptions, has to be presented for registration within four months from the date of its execution.
- Expiry of the prescribed time
If a document is presented after the expiry of the prescribed time but within the subsequent period of four months, then the parties to the agreement can apply to the Registrar who may direct the document for submission on payment of a fine not exceeding ten times the proper registration fees. If the delay in Registration is more than four months then the parties to the document need to execute a Deed of Confirmation, confirming that the main deed is valid and binding upon them. By way of such a deed the transferor/s also confirm/s that he/they hold/s no right, title and interest in the property and the same is being transferred to the transferee/s name. A copy of the main deed is annexed to this Deed of Confirmation. This is the only manner in which the lapse in registration can be rectified.