Maharashtra Hikes Stamp Duty Rates to Raise Rs 2,000 Crore Amid Financial Strain

By adjusting these rates, the state government aims to meet its financial challenges while continuing to fund various welfare programs.

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stamp duty

In a move aimed at increasing revenue, the cash-strapped Mahayuti government of Maharashtra has revised stamp duty rates, a step that is expected to add ₹2,000 crore to the state’s coffers. This decision comes as the state grapples with mounting loans and budgetary commitments tied to popular welfare schemes like Ladki Bahin and Ladka Bhau.

The new stamp duty structure will replace the earlier minimal charges, which were as low as ₹100 for document registrations. The revised rates will now vary depending on the transaction involved, particularly in work contracts, amalgamations, restructurings, and mergers. For example, tenements constructed under the Slum Rehabilitation Authority (SRA) scheme, which earlier attracted ₹100 in stamp duty, will now incur ₹500.

Under the revised system, the ₹100 and ₹200 stamp duty previously charged on 12 types of documents will now go up to ₹500. In addition, the stamp duty on a company’s articles of association has been increased from 0.2% to 0.3%, with a maximum cap of ₹1 crore, compared to the previous limit of ₹50 lakh. Similarly, awards related to mergers, amalgamations, and restructuring, which were charged ₹500, will now be taxed based on the market value of both fixed and movable assets.

A major change is also being introduced in the stamp duty levied on work contracts. While the earlier rate was ₹500 for contracts up to ₹10 lakh and 0.1% for amounts above that, the revised rate will be ₹500 for contracts up to ₹5 lakh, with 0.3% charged for higher amounts.

The Revenue Department, which put forward the proposal, emphasized that the revision is aimed at simplifying the system and ensuring uniformity. The changes, which will be enacted through amendments to the Maharashtra Stamp Duty Act of 1958, are expected to enhance ease of doing business in the state.

The target for stamp duty collections this fiscal year has been set at ₹60,000 crore. Last year, the state collected over ₹50,000 crore from stamp duty alone, making it one of Maharashtra’s most significant sources of revenue.