Various taxes which are applicable on purchase of immovable property
If you want to read more about the taxes just click on below topic.
Last Updated on 08 February 2019
STAMP DUTY (with effect from 07th September, 2017)
Stamp Duty is charged on Market Value or on the Agreement Value which ever is higher.
Stamp Duty in Maharashtra differs according to the jurisdiction in which it falls.
1. In Nagar Panchayat stamp duty is 4% on Market Value or on the Agreement Value which ever is higher. (For Rural Area or Other Area)
2. In Municipal Council stamp duty is 5% on Market Value or on the Agreement Value which ever is higher. (Area Under MMRDA, Municipal Corporation and Adjoining Cantonment and Influence Zone).
3. In Municipal Corporation stamp duty is 5% on Market Value or on the Agreement Value which ever is higher. (Municipal Corporation and Adjoining Cantonment Area).
Note : w. e. f. 07/09/2017, the rate of Stamp Duty for few types of Sale Deed and Gift have been changed. Click for Download
REGISTRATION FEE (with effect from 01st March, 2009)
On 16/02/2009 Registration Department removed the Registration fee limit of
30000/- and introduce direct 1% without upper limit, but the department issused new notification dated 01/09/2009 was stayed
for the temporarily till further order.
Registration fee is 1% (one percent) on Market Value or on the Agreement Value or 30000/- which ever less. Metro Cess (with effect from 8 th February, 2019)
The Maharashtra Government had made provision in the Municipal Corporations of Greater Mumbai (MCGM) Act, 1888. Maharashtra Government Gazette”, on the 17 th, December 2018. Insertion of section 144F in III of Municipal Corporations of Greater Mumbai (MCGM) Act, 1888.
The Urban Development Department issued a notification on 08 th,February, 2019 directing the department of registration and stamps to recover 1% (Metro Cess )Metro Cess additional to stamp duty to the civic bodies of Mumbai on such documents like Sale Deed, Mortgage Deed, Gift Deed, etc.
Stamp Duty + 1% (Metro Cess) on Market Value or on the Agreement Value for Sale Deed / Agreement for Sale which ever is higher and on Gift Deed, and Mortage of property 1% on Market Value.
Official Gazette : Insertion of section 144F in III of Municipal Corporations of Greater Mumbai (MCGM) Act, 1888. Click for Download
Circular : Circular dated 08/02/2019 for Municipal Corporation of Greater Mumbai Click for Download
LOCAL BODY TAX (LBT) (with effect from 13
th March, 2013)
The Maharashtra Government had made provision in the Maharashtra Municipal Corporations (MMC) Act. The Urban Development Department issued a notification on 13th, March, 2013 directing the department of registration and stamps to recover 1% (LBT) Local Body Tax additional to stamp duty to the civic bodies of Nagpur, Pune, Thane, Pimpri Chinchwad and Navi Mumbai on such documents like Sale Deed, Gift Deed, Mortgage Deed etc.
1) Maharashtra Municipal Corporation Act, (In other Municipal Corporation Limits (LBT) Local Body Tax) Mumbai City and Mumbai Suburban District are excluded.
2)Municipality / Municipal Council / Nagar Panchayat Limits
3)Zilla Prishad Limits
4)Nagpur Improvement Trust Limits
Stamp Duty + 1% (LBT) on Market Value or on the Agreement Value for Sale Deed / Agreement for Sale which ever is higher and on Gift Deed 1% on Market Value.
Circular for Local Body Tax (L.B.T.) in Maharashtra Click for Download
TAX DEDUCTED AT SOURCE (T.D.S) (w.e.f. 1st June, 2013)
Tax Deducted at Source (TDS) it charged on part of total value not cost.
Value of immovable property is above 50 Lac the seller has to pay TDS on it (Seller having Income Tax Pan Card) is 1% (one percentage).
If property is sold-out by the vendor/seller to vendee/purchaser and if seller doesn't have PAN Card, or if vendor/seller doesn't provide it’s Permanent Account Number (PAN) then the vendee/purchaser has a right to deduct TDS @ 20% under section 206AA of the Income-Tax Act, 1961 of the consideration amount or market value amount which ever is higher and issues TDS Certificate and pay a similar to Income Tax Department.
TDS deducted by the Vendee / Purchaser / Buyer at the time of making the payment to Vendor / Seller.
Vendee / Purchaser / Buyer have to deposit the deducted amount within 7 days from the end of the month in which period deduction has been made.
All the details regarding to the transaction and TDS on the property are required to be furnished in FORM 26QB and it has to be submitted through online payment made at the time of payment.
After depositing of TDS the Vendee / Purchaser / Buyer also required to issues FORM 16B to the Vendor / Seller of the property in respect of TDS deducted and deposited within the Government Treasury
In case of failure to go with the provisions, interest and penalty would be obligatory to the Vendee / Purchaser.
Interest are charged @ 1 % per month or a part of the month for failure to deduct tax or short deduction of tax from the date the tax was deductible until the date an equivalent is subtracted.
Interest is charged @ 1.5 % per month or a part of the month for tax subtracted however not paid to the government from the date of deduction until the date of actual payment.
TDS is applicable for the whole installment, from the start of Earnest amount until the possession of the property. Non Resident Indians (NRIs)
Income Tax Department had made Provisions for Non Resident Indian that, if the payment is formed to a Non-Resident Indian then section 194-IA won't be applicable rather section 195 is going to be attracted and TDS is needed to be subtracted @ 20% + EC (Education Cess) & SHEC (Secondary and Higher Secondary Education Cess) on the sale thought, surcharge @ 10% are going to be applicable if the amount paid exceeds 1 Core. The limit of 50,00,000/- isn't applicable just in case of payments created to NRI’s. Note : We advise our users to take proper legal helps from Chartered Accountant. In case of any further queries or concerns you can contact Link : TIN Call Center at 020-27218080 or email to email@example.com or to visit the TIN (Tax Information Network of Income Tax Department) website https://www.tin-nsdl.com/
GOOD SERVICE TAX (GST) Tax (w.e.f. 1st July 2017)
On 1st July 2017 the Central Government of India introduce Good Service Tax commonly known as GST by introducing the GST all other taxes such as Service Tax (ST), Value Added Tax (VAT), Central Excise and Local Taxes, were replaced to create a uniform Tax “One Nation One Tax”
GST are divided into five slabs from 0%, 5%, 12%, 18% and 28% for collection of tax. GOOD SERVICE TAX ON REAL ESTATE
GST is exempted for the under-construction projects which are in affordable housing scheme/segment announced by Prime Minister of India “Housing for all by 2022”
GST is applicable to Under Construction Property with a flat rate of 12% and for Resale or Ready Possession, the property is not applicable.
‘DONATION’ or ‘TRANSFER CHARGES’ or ‘PREMIUM’
(In Co-operative Housing Society)
According to the OLD MODEL BYE-LAWS, bye law no. 40(d)(vii) the transfer fees chargeable is
50/- and the ‘Donation’ or ‘Transfer Charges’ or ‘Premium’ amount chargeable is a maximum of 1,000/- Commissioner of Co-operation and Registrar Co-operative Societies, Pune, Maharashtra issued Circular dated 27th November, 1989 the maximum premium was increased to 25000.
According to the NEW MODEL BYE-LAWS, Bye-law no. 38(e)(vii) provides for transfer fee of 500/- only, further, Bye-law 38(e)(ix) provides for the payment of ‘Donation’ or ‘Transfer Charges’ or ‘Premium’ at the rate to be fixed by the General Body but within the limits prescribed by the Department of Co-operation, Government of Maharashtra from time to time. Circular dated 9th August 2001 issued by the Co-operation and Textile Department, the maximum amount at 25000/-.
The Commissioner for Co-operation and Registrar Co-operative Society, Pune, Maharashtra, clarify that ‘Donation’ or ‘Transfer Charges’ or ‘Premium’ should be as per the table of maximum allowable transfer fee and clearly states that no further amount can be taken as ‘Donation’ or ‘Transfer Charges’ or ‘Premium’.
Note : When the transfer is among the family members, the Society cannot charge the ‘Donation’ or ‘Transfer Charges’ or ‘Premium’ and will have to transfer the shares without any money consideration.
Maximum premium can be collected from members as below under Area Jurisdiction
1) Municipal Corporation & Development Authorities 25000/-
2) ‘A’ Class Municipalities 20000/-
3) ‘B’ Class Municipalities 15000/-
4) ‘C’ Class Municipalities 10000/-
5) Rural Area 5000/-
PROPERTY TAX (ASSESSMENT BILL)
When purchasing immovable property such as residential unit, commercial unit (office/shop) or an industrial unit in under construction building, ready possession building or resale unit in building, one has to know about the property tax is been paid by whom.
Maharashtra government have made obligatory to pay property tax on the capital value-based system to calculate capital levy on buildings, lands, homes, and institutions across the state; the new system has been introduced w.e.f. 2010 for all the Municipal Corporations, Councils and Local Bodies.
The capital levy is calculated with the assistance of the revenue enhancement (Stamp Duty Ready Reckoner Rates) that area unit revised by the government each year with the new budget.
The capital value-based system is upgraded every 5 years however the tax levied wouldn't be greater than 40 percentages over the previous years. WHAT IS PROPERTY TAX?
Property tax is kind of tax which is collected by the local government or by the Municipal Corporation in the jurisdiction where the property is situated.
Property tax is collected in advance for the period of Half Yearly or Yearly. The property tax is applicable to Residential, Commercial Industrial buildings in different proportion. WHERE PROPERTY TAX AMOUNT IS SPENT BY THE LOCAL BODY OR MUNICIPAL CORPORATION ?
Collected property tax is mainly used for the public services like repairing roads, construction schools, buildings, sanitation, walking footpath for public, public toilets, gardens, etc. TO WHOM THE PROPERTY TAX BILL IS SENT BY THE AUTHORITY ?
The BMC Assessment Department raise a single bill of property tax to the respective owner of the building / Land Lord / Co-operative Society or to an individual member. IT IS WHOSE RESPONSIBILITY OF PAYING PROPERTY TAX TO AUTHORITY BY THE OWNER OF BUILDING (LANDLORD / CO-OPERATIVE SOCIETY) ?
Earlier landlords were constructing buildings and letting out premises on a tenancy basis, purely in form of income point of view but after 1960 hardly any building is constructed on single ownership basis for tenancy purpose the landlord used to pay property tax.
Property tax is the annual amount paid by a landowner to the local government or the municipal corporation of his area.
After 1960 the properties are developed on a multi-ownership basis or jointly owned by the members of co-operative housing societies as the ultimate beneficiary.
It is the responsibility of the individual member of the society to pay the assessment tax bill to the society if the single bill is sent to society by the authority.
If the society had applied to the authority for sending separate assessment bill to an individual member then it’s the responsibility of the member to pay the same directly to the authority. Note : If tax isn't paid to the authority within 3 months fine will be imposed and they can issue warrant of attachment “A-1” the authority is sceptered to connect and auction the immovable properties of the defaulters, for recovery of taxes.
‘INCOME TAX BENEFIT U/s 24, U/s 80EE and u/s 80C
One can claim Tax benefit on the amount paid towards stamp duty and registration fees paid on the property.
One should know about conditions for calming deduction under various section i.e. u/s 24, u/s 80EE and u/s 80C of Income Tax Act.
* If the amount has been paid by the assesses.
* One can claim the deduction only after possession of the property has been taken.
* The house should be in the name of assesses claiming deduction.
* The deduction can be claimed only in the year when payment is completed.
* This deduction is available only for the purchase of new residential house property and not on the commercial property.
* The maximum deduction is available up to the limit of 150000 u/s 80C.
The tax write-off is for the persons and not per the property. If the property has been purchased collectively and has taken a joint loan on the property, every purchaser repaying the amount would be eligible to say the whole deduction severally. Note : We advise our users to take proper legal help from Chartered Accountant.
DISCLAIMER: The above information on various taxes applicable on the purchase of immovable property (Under Construction or Ready Possession) and (Deduction under Income Tax) etc are for general purpose and mere use only and not constitute as legal advice or remedies. We advise our users to take proper legal helps from Solicitor, Advocate, Chartered Accountant, Tax Consultant in respective fields or with concern department. e-Stamp Duty Ready Reckoner will not be responsible for any kinds of claims, losses arising out of the use of any of the mentioned information’s provided on this entire site.
ROUNDING OFF STAMP DUTY (w. e. f. 1st May, 2013)
As per newly introduced sub-section 2 of Section 70 of Maharashtra Stamp Act, 1958
In case of document on which stamp duty payable is one hundred and forty nine rupees then 49 shall be disregarded, or more than one hundred forty nine then the said amount will be rounded of to next one hundred rupees.
1) In other words if on a document stamp duty determined is 101 or more up to 149 then 100 is payable.
2) If stamp duty amount is 150 or more up to 199 then 200 is payable.
Please read all information carefully before calculating Stamp Duty and other taxes related to property
Amendment in Stamp Duty from 07/09/2017, the rate for few types of Sale Deed have been changed.
Note : w. e. f. 07/09/2017, the rate of Stamp Duty for few types of Sale Deed and Gift have been changed. Click for Download How to use Stamp Duty & Registration Fee Calculator ?
It is very easy to calculate, just input the Market Value of the property if you know it or just input value as "0" means "zero" then input the Agreement Value of the property and then select the property located in the area, if your property is in the civic bodies such as Nagar Panchayat / Municipal Council / Municipal Corporation i.e.
the Local Body Tax is also applicable. Then select Type of Construction (Ready Possession / Under Construction) and afterwards select PAN (Pan Available / Pan Not Available) and Calculate. Nagpur, Pune, Thane, Pimpri Chinchwad and Navi Mumbai How much stamp duty, registration fee and other Taxes will I need to pay on Sale Deed or Agreement for Sale in Maharashtra State ?
Market Value Agreement Value Area
in sq feet only
Nagar Panchayat Within the limits of any Grampanchayat area or any such area not mentioned in sub-clause (ii)
Municipal Council within the limits of any Municipal Council, Nagar Panchayat or Cantonment Area annexed to it, or any rural area within the limits of the Mumbai Metropolitan Region Development Authority or any other Urban area not mentioned in subclause (i), or the Influence Areas as per the Annual Statement of Rates published under the Maharashtra Stamp (Determination of True Market Value of Property) Rules, 1995.
Municipal Corporation Within the limits of any Municipal Corporation or any Cantonment area annexed to it. Select Other Tax which are Applicable w. e. f. 08/02/2019 Maharashtra State Government inserted Section 144 F in the Mumbai Municipal Corporation (Second Amendment) Act, 2018, to levy additional stamp duty on property sale, Mortage, Gift, Lease etc. In Mumbai City 1% Metro Cess is applicable in juridiction of Municipal Corporation Greater Mumbai.
Metro Cess | w. e. f. 08/02/2019 1) Brihanmumbai Municipal Corporation (BMC) 1% Metro Cess is applicable in Mumbai City and Mumbai Suburban District
2) Maharashtra Municipal Corporation Act, (In other Municipal Corporation Limits. 1% Metro Cess (MC) is applicable i. e. Thane, Pune (Pune City / Pimpri Chinwad)
Local Body Tax 1) Maharashtra Municipal Corporation Act, (In other Municipal Corporation Limits (LBT) Local Body Tax) is applicable.
2) Municipality / Municipal Council / Nagar Panchayat Limits
3) Zilla Prishad Limits Note : Applicable for Nagpur (NMC / NIP etc.) Maharashtra Government had increased stamp duty by 0.50% for the Nagpur Improvement Trust (NIT) and passed on to the civic bodies.
So for better understanding the calculation, we have added 0.50% of stamp duty in LBT please make note of it.
LBT in Nagpur (NIT) 4)Nagpur Improvement Trust Limits (NIT) Taxes applicable on the Type of Construction
Ready Possession Good Service Tax (GST) is not applicable on Ready Possession or Resale Property.
Under Construction If Property is Purchased in Under Construction Project.
GST is applicable to with flat rate of 12% T.D.S. applicable to Vendor / Seller Under Income Tax Act.
PAN Card Available Value of immovable property is above 50 Lac the seller has to pay TDS on it (Seller having Income Tax Pan Card) is 1% (one percentage). It is the responsibility of buyer to deduct 1% as TDS while making payment to seller.
PAN Card Not Available If Seller / Vendors do not have Income Tax Pan Card Number. In such case it is the Responsibility and Liability of Purchaser to deduct T.D.S. 20% (Twenty Percentage) of the amount of the Consideration or Market Value whichever is greater. (Take proper guidance from Chartered Accountant, for the said subject. ) Note : T.D.S. is not applicable to agriculture land. Request Note for users : If the calculator is not working please do inform use immediately so we can rectify the problem Click Here
If you like this website, please support it by recommending it and telling your friends. Please take out some quality time of yours and drop a few words about this site on Facebook which is highly appreciated and Thanks to those users who have given there likes on the facebook for our site. Facebook The Online Simple Stamp Duty & Registration Fee Calculator for Sale Deed / Agreement for Sale which provides you with an indication of amount you need to pay in form of taxes such as stamp duty and registration fee; your Advocate, Solicitor, Chartered Accountant or Stamp Duty Consultant will be able to provide you with True Market Value of the property with the final amount of the Stamp Duty and Registration Fee and other taxes its procedures. We always recommend our valuable users to obtain the proper Legal Advice from the professionals in these fields or confirm with the concerned authority. Note : Read full terms and condition with disclaimer carefully. So, do tune in regularly
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