Stamp Duty on Gift Deed in Maharashtra: A Legal Guide

Thinking of gifting your flat or land to a family member? In Maharashtra, the stamp duty on a gift deed depends on who you are gifting it to, the type of property, and its market value as per the Ready Reckoner (ASR). Registration is compulsory, and if the stamp duty is unpaid or underpaid, it can attract penalties and interest. If your case is not straightforward, such as when the property has multiple owners or mixed use, it is best to get the deed adjudicated by the sub-registrar’s office to confirm the correct amount of duty payable.

What is Stamp Duty on Gift Deed for Maharashtra?

Stamp duty is a state-level tax imposed on legal documents to make them valid and enforceable in the eyes of law. In the case of a gift deed, it serves as proof that ownership of the property has been legally transferred from the donor to the donee without any monetary consideration.

In Maharashtra, this duty is governed by the Maharashtra Stamp Act, 1958, and the rate of stamp duty on gift deeds varies based on factors such as the relationship between the donor and donee, the type of property (residential, commercial, or agricultural), and its location and value as per the Annual Statement of Rates (Ready Reckoner).

The Legal Basis for Stamp Duty on Gift Deeds in Maharashtra

The stamp duty on gift deeds in Maharashtra is not arbitrary, it is backed by specific legal provisions and valuation rules that determine how much you need to pay when transferring property by way of gift.

Maharashtra Stamp Act, 1958, Schedule I (Gift) and Section 32A (Market Value)

The Maharashtra Stamp Act, 1958 is the primary law governing stamp duty in the state. Under Schedule I, gift deeds are listed as one of the instruments that attract duty. Section 32A of the Act mandates that stamp duty must be calculated on the market value of the property, not just the value mentioned in the deed. This ensures that the government collects duty based on the property’s fair value.

Role of IGR Maharashtra, Collector of Stamps, and Sub-Registrar

The Inspector General of Registration (IGR) oversees the administration of stamp duty and registration across Maharashtra. The Collector of Stamps is responsible for adjudicating and confirming the correct amount of stamp duty payable on specific instruments, including gift deeds. Meanwhile, the Sub-Registrar handles the actual registration process and ensures that the required stamp duty and registration charges are paid before the deed is recorded.

ASR/Ready Reckoner and How Market Value is Determined for Duty

The Annual Statement of Rates (ASR), also known as the Ready Reckoner, is published each year by the state government. It lists the minimum market value for land, flats, and buildings across different zones and localities in Maharashtra. When calculating stamp duty, authorities use this value (or the higher declared value, if applicable) to determine the market value on which duty will be charged.

Key Factors Affecting Stamp Duty on a Gift Deed in Maharashtra

The stamp duty on a gift deed in Maharashtra is not a flat rate; it changes based on several legal and practical factors. Understanding these helps you estimate your payable duty more accurately and avoid errors during registration.

1. Relationship Between Donor and Donee

The relationship between the giver and receiver of the property is the most crucial factor. In Maharashtra, gifts made to close relatives, such as parents, siblings, spouses, and children, attract a nominal or concessional stamp duty. However, if the property is gifted to someone outside this defined family circle, the standard stamp duty rates apply.

2. Type of Property

The duty also depends on whether the property is residential, commercial, or agricultural. Residential and agricultural properties usually have lower market values compared to commercial ones, which directly impacts the overall stamp duty payable.

3. Location and Market Value (ASR/Ready Reckoner)

Every property in Maharashtra has a predefined market rate in the government’s Annual Statement of Rates (Ready Reckoner). Properties in urban or prime areas attract higher stamp duty because their ASR value is higher, while those in rural or less developed regions have lower duty amounts.

4. Gender of the Donee

Some local authorities provide minor concessions for female recipients, particularly in residential property transfers, as part of state-level incentives to encourage women’s ownership of property.

5. Mode of Transfer and Property Share

Whether you are gifting the entire property or just a share in it also affects the duty. Similarly, if multiple owners are involved, each share is evaluated separately to determine the applicable duty.

Stamp Duty & Registration Charges for Different Cities in Maharashtra for 2025

Notes:

• Female buyers receive a 1% concession on Stamp Duty.
• Registration charges are capped at ₹30,000 for properties valued above ₹30 lakh.
• Stamp Duty rates include applicable Metro Cess, local body taxes, and surcharges.

How Stamp Duty Is Calculated (Step-by-Step)

Calculating stamp duty on a gift deed is not just plugging in a rate - it involves multiple valuation checks, special adjustments, and matching legal requirements. Below is a stepwise approach you can explain to readers, along with caveats for special scenarios.

Identify the Property’s Market Value

1. Determine the Ready Reckoner (ASR) Rate
   The Ready Reckoner (ASR), also known as the Annual Statement of Rates, is a government-published document that specifies the minimum market value for properties in various regions. The ASR rates are updated annually and vary based on factors like location, type of property (residential, commercial, agricultural), and amenities.
2. 1. Accessing the ASR: The ASR can be accessed through the official IGR Maharashtra portal: IGR Maharashtra.
   2. Understanding the Rates: The ASR provides rates per square meter or square foot, depending on the property type and location. For instance, urban areas typically have higher rates than rural areas due to better infrastructure and amenities.
2. Adjust for Property Specifications
   After determining the base ASR rate, adjustments are made based on specific property characteristics:
3. 1. Construction Quality and Age: Older properties or those with lower construction quality may have a reduced market value.
   2. Amenities: Properties with additional features like parking spaces, gardens, or clubhouses may have an increased market value.
   3. Depreciation: For under-construction properties, depreciation is considered based on the stage of construction.
3. Compare with Transaction Value
   If the transaction value (the amount mentioned in the gift deed) is higher than the ASR-calculated value, the stamp duty is calculated based on the higher value. Conversely, if the transaction value is lower, the ASR value is used for stamp duty calculation.

Special Scenarios

1. Undivided Share- In cases where only a portion of the property is being gifted (e.g., a share in a jointly owned property), the stamp duty is calculated based on the proportionate market value of the undivided share. The ASR rate applicable to the specific share is used for this calculation.
2. Under-Construction Properties- For under-construction properties, the stamp duty is calculated based on the market value of the land and the constructed portion. The ASR rate for the land is applied, and for the constructed portion, adjustments are made for the stage of construction and depreciation.
3. Encumbrances- Properties with existing encumbrances (like mortgages or legal disputes) do not have a reduced market value for stamp duty purposes. The full market value, as determined by the ASR, is used for calculating stamp duty, irrespective of any encumbrances.

Break-Up of Costs (Not Just Stamp Duty)

When purchasing property in Maharashtra, the total cost involves several components beyond just the stamp duty. Understanding each of these can help in accurate financial planning:

• Stamp Duty: This is the main tax paid to the government on the property transaction, calculated as a percentage of the property's market value or agreement value, whichever is higher. This varies by city and gender of the buyer, with female buyers typically getting a concession.
• Surcharge/Cess: Additional levies like metro cess, local body tax, or transport surcharge may apply depending on the location. These are usually added as a percentage on top of the stamp duty.
• Registration Fee: A fee charged to register the property transaction in the government records. In Maharashtra, it is generally 1% of the property value, often capped at ₹30,000 for higher-valued properties.
• Miscellaneous Charges: These may include lawyer fees, documentation charges, legal due diligence, and processing fees for obtaining encumbrance certificates or non-encumbrance certificates.

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How to Pay Stamp Duty on a Gift Deed in Maharashtra?

• Stamp Duty Rate:
• 1. If the property is gifted within family (blood relatives) like spouse, children, parents, siblings, etc., a nominal stamp duty of ₹200 is applicable.
  2. For gifts to non-relatives, stamp duty is 3% of the property’s market value.
• Registration Charges:
• 1. Generally 1% of the property value is charged as registration fees.
• Who Pays Stamp Duty?
• 1. The donor (person gifting the property) is liable to pay the stamp duty and registration charges in Maharashtra.
  2. If the donee pays the stamp duty, the transaction may be treated as a sale, attracting higher duty and losing gift deed benefits.
• Process to Pay Stamp Duty:
• 1. Draft the gift deed with relevant property details, donor and donee information, preferably with legal help.
  2. Calculate the stamp duty based on the donor-donee relationship and property value.
  3. Pay the stamp duty online via the IGR Maharashtra Stamp Duty Calculator or at the Sub-Registrar Office (SRO).
  4. Submit the paid challan during the gift deed registration at the SRO.
  5. Complete gift deed registration with donor, donee, and witnesses present.
• Documents Required:
• 1. Identity proof of donor and donee (PAN, Aadhaar, etc.)
  2. Existing sale deed/title documents
  3. Draft gift deed
  4. Passport-sized photos of parties
  5. Witness identification
• Important:
• 1. Gifts within blood relatives attract minimal stamp duty to facilitate family transfers.
  2. Non-family gift transactions attract regular stamp duty without concessions.
  3. Failure to pay stamp duty makes the gift deed legally invalid and unenforceable.

Conclusion

In conclusion, stamp duty on gift deeds in Maharashtra is governed by clear legal provisions under the Maharashtra Stamp Act, 1958. The duty depends largely on the relationship between the donor and donee, property type, location, and market value as per the Ready Reckoner rates. Gifts within close family members attract nominal stamp duty, typically ₹200, encouraging intra-family property transfers, while gifts to non-relatives attract a higher rate of 3% of the property’s market value. Registration fees, generally 1% of the property value capped at ₹30,000, are also payable. The donor is responsible for paying these charges to ensure the legality and enforceability of the gift deed. Failure to pay stamp duty can render the gift deed invalid. Using official government portals for payment and registration simplifies the process and helps avoid penalties. Understanding these rules helps protect both the donor's and donee's rights and ensures smooth and lawful property transfer by gift in Maharashtra.