In a bid to bring uniformity, the state cabinet chaired by Chief Minister Uddhav Thackeray has approved a reduction in the stamp duty charged on deposit of title deeds mainly concerning the property loans from banks.
With today’s decision, ordinary citizens, slum dwellers, farmers as well as people from other unorganised sectors, who do not have registered documents, can now pay less stamp duty on bank loan documents. The property title or other evidence will be sufficient in such bank transactions. The government decision will help small and medium scale enterprises who go in for loans with the banks and financial institutions. They will now benefit by 40% due to the reduction in stamp duty.
Today’s decision comes days after the state cabinet has reduced stamp duty on property transactions in two tranches including 2% up to December 31, 2021, and 3% from January to March 31, 2021.
A revenue department officer told the Free Press Journal, "The discrepancy in the stamp duty on documents relating to banks led to non-payment of stamp duty. In order to curb it, the rate of stamp duty levied on a bank-related deposit of title deed or equitable mortgage or hypothecation document will be 0.3 per cent instead of 0.2 percent.’’
The rate of stamp duty levied on a simple mortgage deed which does not include possession of the property included in the mortgage is 0.5 per cent which has now been reduced to 0.3 per cent.
The Cabinet has decided to levy Rs 15,000 for online registration of documents or online filing of notices.
In addition, the document contains a variety of items. Stamp duty is levied on such documents under Section 5 of Maharashtra Stamp Act. Now the cabinet has approved the amendment in section 5 whereby stamp duty will be charged on instrument or transaction. Earlier, it was charged on all instruments. Now for each and every transaction, the borrower will have to pay stamp duty as per the
Supreme Court dated August 11, 2015, in connection with the imposition of stamp duty on mortgage lending by a group of banks.