#TaxmannPPT | All-About Maharashtra Stamp Duty Amnesty Scheme

Date : Monday, 05 February 2024

Conducted by : CA Shreyash Prabhu

What is Stamp Duty?

Stamp Duty

• It is a tax payable to the STATE GOVERNMENT

• Payable under Section 3 of The Maharashtra Stamp Act, 1958

• Payable on Instruments given under Schedule-I of the Act

• Only on proper payment of stamp duty is an instrument

admissible as evidence in Court

• Stamp duty to be paid in Full and On Time

• Delay of payment of stamp duty attracts Penalty

Why to pay Stamp Duty?

It is to be paid as LAW exists

Stamp Duty

Why to pay Stamp Duty?

To ensure Legal Validity of Document

As per Sec 34, Instrument not duly stamped is inadmissible as evidence

Stamp Duty

Why to pay Stamp Duty?

If not paid, under sec 34

Penalty of 2% per month from date of signing till deficient stamp duty is paid

Penalty up to 400% i.e. 4 times

Stamp Duty

Why to pay Stamp Duty?

If penalty is not paid, then? CONFISCATION LAND SEIZURE

Stamp Duty

Why to pay Stamp Duty?

If penalty is not paid, then?

Under Sec 59(1) of Maharashtra Stamp Act, 1958

Imprisonment for a term NOT LESS THAN 1 month which may extend to 6 months

Stamp Duty

When to pay Stamp Duty?

Stamp duty payable :

• Before execution of document

• On day of execution of document

• On next working day of execution of document

Stamp Duty

Instruments on which stamp duty applicable

All Instruments provided in Schedule I of Maharashtra Stamp Act, 1958.

Article Name of Instrument

Art 5 Agreement

Art 10 Articles of Association of companies

Art 25 Conveyance

Art 34 Gift

Art 52 Release Deed

Total 63 different types of instruments are covered in the schedule

Stamp Duty

Significance of year : 1958 – 1980 – 1985

• 11th June, 1958:

 Bombay Stamp Act, 1958 came into effect which was later changed to Maharashtra Stamp Act, 1958 in the year 2015.

• 4th July, 1980:

 Market value concept was introduced.

 Stamp duty payable on market value or agreement value whichever is higher.

 Earlier stamp duty payable on agreement value only.

• 10th December, 1985:

 Stamp duty payable compulsory on Agreement for sale

 Before that only Rs. 5 required and stamp duty payment required during agreement for sale

Stamp Duty

Significance of year : 1958

A. From beginning of Maharashtra Stamp Act, 1958 till 9.12.1985

At the time of execution of Agreement for sale

1st Stage

2nd Stage

Important Note: There was no provision to collect stamp duty leviable on conveyance at the time of agreement for sale.

At the time of Execution and registration of the conveyance deed or sale deed in the name of the society or the purchaser.

Important Note: Thus full stamp was required to be paid at the time of conveyance and not at the time of agreement. Thus, there was a provision to postpone the liability of payment of stamp duty till the conveyance deed is executed.

5(h) Rs. 5

25

i) Upto market value of Rs. 50,000/- at 10%

ii) Between Market value of Rs.50,010 to Rs.1,00,000/- at 12% of the value.

iii) Above Rs,1,00,000/- at 15% of the value.

Stamp Duty

Significance of year : 1958 – 1980 – 1985

Stages Period

B. After 10.12.1985

At the time of execution of Agreement for sale

Article –Schedule I

Stamp duty Rate / Amount (Rs.)

1st Stage

2nd Stage

Important Note: The provision was made to collect the stamp duty applicable on conveyance at the time of agreement for sale only by inserting the explanation 1 to the Article 25. Each agreement for sale was considered as part Conveyance.

At the time of Execution and registration of the conveyance deed or sale deed in the name of the society or the purchaser.

Important Note: Since applicable stamp duty on conveyance was paid at the time of agreement for sale itself, at the time of conveyance nominal stamp duty of Rs.100- per flat is payable at the time of execution and registration conveyance deed

Explanation 1 to Article 25

Stamp duty is payable as part of deemed conveyance

Proviso to Explanation 1 to Article 25

Nominal stamp duty of Rs.100/- per flat only.

Stamp Duty

Significance of year : 1958 – 1980 – 1985

• 10th December, 1985:

Eg : Building constructed in 1983 having 100 members and conveyance of building to society done in 2023

80 members bought flat in 1983:

In 1983 – Had to pay Rs.5 as stamp duty applicable.

In 2023 – Have to pay stamp duty as applicable

20 members bought flat in 1987:

In 1987 – Had to pay stamp duty rate applicable.

In 2023 – Have to pay Rs.100 only for deemed conveyance.

Stamp Duty

Stamp Duty on Gift deed

• Covered under Article 34 of Schedule I

Residential & Agricultural Property

Any other immovable property Others

Gift to Husband, wife, son, daughter, grandson, granddaughter or wife of deceased son

Rs. 200

Gift to Husband, wife, brother, sister, lineal ascendant, lineal descendant

3%

NOTE : 1% metro cess charged additional applicable since 8-2-2019

of market value

5% of market value

BREAK

Stamp

Stamp Duty Amnesty Scheme 2023-24

WHAT is meaning of Amnesty?

• Forgiveness

• Pardon

• Relief

• Waiver

Revenue and Forest department of Maharashtra has introduced Amnesty scheme to reduce stamp duty and penalties on specified instruments

Previous scheme was launched in 2019

Stamp Duty Amnesty Scheme 2023-24

WHEN was the scheme launched?

Stamp Duty Amnesty Scheme 2023 was introduced and declared by the Govt. of Maharashtra on 7th December, 2023 via Govt order : Mudrank-2023/C.R.No.342/M-1(Policy)

Stamp Duty Amnesty Scheme 2023-24

Time period for availing benefits

Scheme was launched in Two Phases for agreements between 1st January 1980 – 31st December 2020

PHASE 1 PHASE 2

From 1st December 2023 to 31st January 2024

From 1st February 2024 to 31st March 2024

29th February, 2024 1st March, 2024

Extended on 31st Jan, 2024 by Deputy Secretary – Shri Satyanarayan Bajaj

Stamp Duty Amnesty Scheme 2023-24

Instruments covered under this scheme

• Instrument related to Conveyance

• Agreement to sale

• Lease

• Sale Certificate

• Gift

• Agreement related to deposit of :

 Title deeds

 Pawn

Pledge

 Hypothecation

For Residential / Non – Residential / Industrial use

Stamp Duty Amnesty Scheme 2023-24

Instruments covered under this scheme

• Agreement or Memorandum of agreement relating to transfer of immovable property for purpose of residential use

• Conveyance of allotment of residential / non-residential units from MHADA, CIDCO and SRA to slum dweller for purpose of rehabilitation under scheme

• Conveyance of allotment of residential / non-residential units or houses in registered Co-op Housing Societies or any apartment whose Deemed Conveyance is pending

Stamp Duty Amnesty Scheme 2023-24

Instruments covered under this scheme

• Any type of Development Agreement

• Conveyance

• Agreement to sell

• Instrument of transaction of Assignment of developer rights

Related to redevelopment of any dilapidated old buildings or immovable property whose redevelopment is necessary

Stamp Duty Amnesty Scheme 2023-24

Instruments covered under this scheme

• Any type of document related to :

 Amalgamation

 Merger

 Demerger

 Arrangement

 Reconstruction of companies

Stamp Duty Amnesty Scheme 2023-24

Instruments covered under this scheme

• Any type of instrument executed by:

 MHADA and its divisional board

 CIDCO

 Municipal Corporation

 Municipal Council

 Nagar Panchayat

 Planning authorities like MIDC, SRA, etc.

Stamp Duty Amnesty Scheme 2023-24

Instruments covered under this scheme

• First Allotment Letter or Share Certificate issued related to residential / non-residential units by Regd. Coop. Society on Government Land or by :

 MHADA

CIDCO  Municipal Corporation, Council or Nagar Panchayat

Approved planning authorities like MIDC, SRA, etc.

Stamp Duty Amnesty Scheme 2023-24

Benefits of the Scheme

If Instrument between

1st Jan 1980 – 31st Dec 2000 (Schedule – I)

Phase I : From 1st December, 2023 to 29th February, 2024

Stamp Duty Amnesty Scheme 2023-24

Benefits of the Scheme

If Instrument between

1st Jan 1980 – 31st Dec 2000 (Schedule – I)

Phase II : From 1st March, 2024 to 31st March, 2024

Stamp Duty Amnesty Scheme 2023-24

Benefits of the Scheme

If Instrument between

1st Jan 2001 – 31st Dec 2020 (Schedule – II)

Phase I : From 1st December, 2023 to 29th February, 2024

Sr. No. Stamp duty paid / payable Reduction in stamp duty to be paid / payable Reduction in penalty to be paid / payable

Penalty < Rs.25,00,000 (25 Lacs)

1 Rs. 1 –Rs. 25,00,00,000 (25 Crores)

25% (75% to be paid)

2 More than Rs. 25,00,00,000 (25 Crores)

20% (80% to be paid)

90% waived off (10% to be paid)

Penalty >= Rs. 25,00,000 (25 Lacs) Rs.25 Lacs to be paid, rest waived off

Rs. 1,00,00,000 (1 Crore) to be paid, rest waived off

Stamp Duty Amnesty Scheme 2023-24

Benefits of the Scheme

If Instrument between

1st Jan 2001 – 31st Dec 2020 (Schedule – II)

Phase II: From 1st March, 2024 to 31st March, 2024

Sr. No. Stamp duty paid / payable Reduction in stamp duty to be paid / payable Reduction in penalty to be paid / payable

Penalty < Rs.50,00,000 (50 Lacs)

1 Rs. 1 –Rs. 25,00,00,000 (25 Crores)

20% (80% to be paid)

2 More than Rs. 25,00,00,000 (25 Crores)

10% (90% to be paid)

80% waived off (20% to be paid)

Penalty >= Rs. 50,00,000 (50 Lacs) Rs.50 Lacs to be paid, rest waived off

Rs. 2,00,00,000 (2 Crores) to be paid, rest waived off

Stamp Duty Amnesty Scheme 2023-24

General FAQs

Q. What documents need to be submitted along with application for availing amnesty scheme?

 Original Instrument on which some amount of stamp duty paid or specified allotment letter issued by authorities or CHS on Government land











Copy of Society Registration Certificate

Copy of BMC Assessment bill

Copy of IOD/CC/OC of building

Copy of Property Card

Copy of Share Certificate (front & back)

Stamp Duty Amnesty Scheme 2023-24

General FAQs

Q.What documents need to be submitted along with application for availing amnesty scheme?

 Copy of Aadhar Card & Pan Card along with 2 recent passport size photographs

 Letter from society about details of flat/apartment

 Authority Letter

 Proof of having possession, like:

• Electricity bill

• Entry in Form A during society formation

• Telephone bill

• Passport

• Election Card

• Bank Passbook

Stamp Duty Amnesty Scheme 2023-24

General FAQs

Q. My agreement is on a piece of paper (without stamp paper), can I avail the benefit?

 NOT ELIGIBLE for Amnesty Scheme

 Any amount of stamp paper should be present

Stamp Duty Amnesty Scheme 2023-24

General FAQs

Q. If stamp duty and penalty paid before the Scheme was announced, can I claim refund?

 NO REFUND shall be granted

Stamp Duty Amnesty Scheme 2023-24

General FAQs

Q. How to apply for Scheme and within how many days to do the payment?

 Application to be made through Online mode through https://igrmaharashtra.gov.in website

 Within 7 days of receipt of demand notice from Registrar, payment has to be made

Stamp Duty Amnesty Scheme 2023-24

General FAQs

Q. How to tell if stamp paper is real or fake?

 We have to submit application to proper authority to verify the stamp paper along with the Original Copy of the instrument requesting to verify the stamp. The appropriate authority issues a certificate as the case may be.