Stamp Duty is a tax, similar to GST and income tax collected by the government. It is payable under Section 3 of The Maharashtra Stamp Act, 1958.

A different amount of stamp duty is payable for different types of documents as per Schedule–I of The Maharashtra Stamp Act, 1958. It must be paid in full and on time.

If there is a delay in payment of stamp duty, it attracts penalty. A stamp duty paid document is considered a proper and legal document and as such gets evidentiary value and is admitted as evidence in court. A document, which not properly stamped, is not admitted as evidence by the court.

When is stamp duty payable?

Stamp duty is payable either before execution of the document or on the day of execution of document or on the next working day of executing such a document.

Execution of a document means putting signatures on the document by the persons who are party to the document. However, it is advisable to pay stamp duty before executing the document, for all practical purposes.

What is the penalty for the delayed payment of stamp duty?

If stamp duty is not paid on time, it attracts penalty at the rate of 2% per month on the deficit amount of the stamp duty. However maximum penalty can be only 400% of the deficit amount of the stamp duty. The minimum penalty is Rs. 100. Documents lodged with the sub-registrar/ Collector of stamps prior to any amnesty scheme will attract a reduced penalty, as applicable under that amnesty scheme, as the case may be.

(The writer is a valuer of real estate and co-author of Stamp Duty Ready Reckoner)

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