What stamp duty and registration are, how they are calculated, who pays, and where to check the current rates — without the figures that go out of date.
Stamp duty and registration are the two largest costs of buying a flat after the price itself, and they surprise first-time buyers more than anything else. Here is how they work. We have deliberately left out percentages: rates and concessions are revised by the state, and a blog post quoting last year's figure is worse than none. The official source is linked below.
What stamp duty is
Stamp duty is a tax the state charges on the document that transfers the property — your sale agreement. It has to be paid before the agreement is registered. In Mumbai it is calculated on the higher of two values:
- the agreement value — the price written in your agreement, and
- the ready reckoner value — the government's reference rate for that location and property type.
So writing a lower price into the agreement does not reduce stamp duty. It only creates problems for you later.
What registration is
Registration records the agreement at the sub-registrar's office, which makes it the legal record of the sale. There is a separate registration fee. On the day, the buyer and seller (or their power-of-attorney holders) sign in front of the sub-registrar with witnesses, and photographs and thumbprints are taken.
Who pays
Normally the buyer pays both stamp duty and the registration fee. This is negotiable in principle, but it is the standard practice in Mumbai, so budget for it from the start.
How payment works
Stamp duty is paid electronically before registration — through the state's online payment system or by e-stamping — and the receipt is attached to the agreement. We calculate the amounts for your specific transaction and coordinate payment and the registration appointment.
Where to check the current rates
The Department of Registration and Stamps, Maharashtra publishes the current stamp duty rates, the ready reckoner rates and an online calculator at igrmaharashtra.gov.in. Use the official figures, not a number from a forum or an old article — including this one.
The other costs to budget for
Stamp duty and registration are not the only additions to the price. A realistic budget also includes:
- GST if you buy an under-construction property (a ready flat with an occupation certificate does not attract GST)
- legal fees for the title search and agreement review
- society transfer charges and share-certificate formalities on a resale flat
- home loan costs — processing fees and the lender's own valuation and legal charges
- brokerage, if applicable
- moving and interiors, which are always more than planned
Common mistakes
- Under-declaring the price to save stamp duty. It doesn't work — duty is charged on the ready reckoner value anyway — and it can cause tax and loan problems.
- Forgetting stamp duty in the loan plan. Lenders usually do not finance stamp duty and registration; they come from your own funds.
- Leaving registration late. An unregistered agreement gives you very little protection. Register promptly after signing.
If you want the exact figures for a property you are considering, our legal and documentation team can work them out before you commit.
