Purchasing a property is not a very straightforward process as it involves lengthy paperwork and requires one to pay different charges. One such fee is the registration charge levied by the respective state governments on every property purchase.
Paying property registration charges in Mumbai enables you to register a particular piece of land against your name in the government records.
Property registration charges in Mumbai
Registering a residential property in Mumbai requires you to pay a flat 1% registration fee if that property’s market value is lower than Rs.30 lakhs. Otherwise, you need to pay Rs.30,000 as a property registration fee in Mumbai.
Now that you know about registration charges, it is also imperative to know about applicable stamp duty in this city.
Stamp duty charges in Mumbai
In the previous financial year of 2020-21, the Maharashtra State Government relaxed stamp duty charges to offer relief to property buyers and stimulate the growth of the real estate sector. However, it reinstated the previous regime from 31st March 2021.
Currently, the stamp duty charges in Mumbai are 5% for male applicants and 4% for female applicants.
Stamp duty and registration charges are not always uniform; they alter with location and a few other factors.
Key factors that determine the stamp duty and registration charges of a property
Here are some notable factors that play a part in deciding the stamp duty and registration charges on a property –
- Property type
Stamp duty and registration fees are mandatory irrespective of the type of property. However, the particulars of it can vary depending on its type. Commercial properties have additional floor space, greater amenities, and security features than residential ones. So, the required fees for such properties are usually higher than that of residential ones.
The locality of a property also plays a part in determining its stamp duty and registration fees. For example, urban areas or the areas under a municipality tend to have a higher amount of stamp duty. Whereas, if your property is under the jurisdiction of a Panchayat, these charges will be lower.
- Market value
Alongside its type, the market value of a property also plays a part here. As previously mentioned, the stamp duty and registration charges shift as per the total market valuation of a property in question.
Therefore, calculate these charges beforehand to avoid delays in this registration process.
- Gender of the property buyer
In India, properties registered under female ownership attracts lower stamp duty. In Mumbai, as mentioned above already, a male owner is liable to pay 5% as stamp duty, and a female owner needs to pay 4%.
Apart from that, any policy change from the Government will automatically alter these charges. The Maharashtra State Government has also made it easy for Mumbai residents to pay these charges online. Thus, you should learn about these steps to avoid the hassle of physically paying it.
A guide on online payment of stamp duty and registration charges
Following is a step-by-step guide on the process of paying stamp duty and property registration charges in Mumbai –
Step 1: Go to Maharashtra stamp and registration departments’ Government Receipt Accounting System
Step 2: Registered users can go ahead with login, but non-registered ones can select ‘Inspector General of Registration’, and click on ‘pay without registration’
Step 3: Clicking on ‘pay without registration’ will lead to a new page where you need to choose ‘citizen’ and the transaction type that you plan to move ahead with
Step 4: Choose ‘make payment to register your document’ and then pay the registration charges and stamp duty separately or together
Step 5: Duly fill up the required details
Step 6: Choose the payment mode and save this online receipt for future purpose
Paying stamp duty and registration charges ensure that a property is recorded against your name and has no ownership issues. This is an essential part of a loan against property eligibility criteria, and every applicant needs to meet it.
Additionally, if you are planning to take a property loan, you can opt for lenders extending pre-approved offers that further simplify the loan application process. These offers are available on a suite of secured and unsecured financial products. You can now check your pre-approved offer online by submitting essential contact information.
Moreover, you can take the assistance of a loan against property EMI calculator for better debt management.
To conclude, paying stamp duty and property registration charges in Mumbai or anywhere in India is mandatory when you purchase a property. If you decide not to comply with this system, a particular property will not be registered in your name. It can then cause legal troubles in future regarding ownership.
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