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STAMP DUTIES
Important provisions of the Bombay Stamp Act
1. Applicability

The Act applies to the whole of the State of Maharashtra. It is adopted by the state of Gujarat with
certain amendments applicable to State of Gujarat only. It also has a separate schedule
prescribing different rates of duty.
2. Charging S. 3

An instrument when executed in the state is liable to stamp duty at the rate provided in Schedule
I. Any instrument executed outside the state is liable to duty only on receipt of such instrument or
its copy in the state, provided it relates to a property situated in the state or a matter or thing to be
done in the state. The charge of duty is created only on execution of an instrument specified in
Schedule I, and not otherwise. Stamp duty is not levied on a transaction, but is leviable on an
instrument.
3. Instrument S. 2(1)

"Instrument includes every document by which any right or liability is or purports to be created,
transferred, limited, extended, extinguished or recorded, but does not include a bill of exchange,
cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of share,
debenture, proxy and receipt."
4. Instrument of gift S. 2(1a)

"Instrument of gift includes, where the gift is of any movable or immovable property but has not
been made in writing, any instrument recording whether by way of declaration or otherwise the
making or acceptance of such oral gift." Subsequent recording of an oral gift is liable to stamp
duty.
5. Instrument of partition S. 2(m)

"Instrument of partition means any instrument whereby co-owners of any property divide or
agree to divide such property and includes

a. any final order for effecting a partition passed by any revenue authority or any civil court,

b. an award by an arbitration directing a partition, and

c. when any partition is effected without executing any such instrument, any instrument or
instruments signed by the co-owners and recording, whether by way of declaration of such
partition or otherwise, the terms of such partition amongst the co-owners."

The expression co-owners includes all kinds of co-ownership such as joint tenancy, tenancy in
common, coparcenary, membership of HUF, etc. and the partnership.
6. Conveyance S. 2(g)
"Conveyance includes
a. a conveyance on sale,
b. every instrument,
c. every decree or final order of any Civil Court,
d. every order made by the High Court u/s. 394 of the Companies Act, 1956 in respect of
amalgamation of companies;

by which property, whether movable or immovable or any estate or interest in any property is
transferred to, or vested in any other person inter vivos and which is not otherwise specifically
provided for by Schedule I."
7. Executed and Execution S. 2(i)

"Executed and execution used with reference to instruments mean signed and signature."
8. Market value S. 2(na)

"Market value in relation to any property which is the subject matter of an instrument, means the
price which such property would have fetched if sold in open market on date of execution of such
instrument or consideration stated in the instrument whichever is higher."
9. Duly stamped S. 2(h)

"Duly stamped means that the instrument bears an adhesive or impressed stamp of not less
than the proper amount and that such stamp has been affixed or used in accordance with the law
for the time being in force in the State."
10. Instruments for several matters

An instrument wherein several properties are dealt with should be charged with the aggregate
amount of the duties with which separate instruments are chargeable.
11. Instrument under several descriptions

An instrument covered under two or more descriptions in Schedule I should be charged with only
the highest of duties specified in Schedule I.
12. Use of adhesive stamps

The following instruments at the option of the person may be stamped with adhesive stamps:
a. Acknowledgement
b. Agreement
c. Certificate
d. Delivery order
e. Letter of Allotment
f. Mortgage of a crop
g. Notarial Act
h. Note
i. Transfer, and
j. Warrant for goods.

All other instruments are to be stamped with impressed stamps only. Any person affixing any
adhesive stamp is required to cancel the same at the time of affixing the same.
13. Duty how to be paid

Payment of duty is to be indicated by means of adhesive or impressed stamps on the

instruments. If stamps are not available on account of shortage, then duty may be paid in cash,
by demand draft or pay order in any Government Treasury. The fact of payment has to be
endorsed on the instruments by the Authorities on production of the receipt or challan. Use of
franking machine for impressions is valid where authorised by Chief Controlling Revenue
Authority.
14. Time for payment

All instruments liable to be stamped should be stamped before or at the time of execution of
instrument or immediately thereafter on the next working day following the date of execution.
15. Purchase of stamp paper
In case of use of impressed stamps, the same should be purchased in the name of one of the
parties to the instrument.
16. Period for use

The stamps should be used within 6 months from date of purchase. Any stamps not used within
this period shall be invalid. Application for refund of stamp duty in specified cases like spoiled
stamps, etc. shall be made within 6 months from the date of purchase of stamps.
17. Duties by whom to be paid

As per S. 30, duty is to be paid by a buyer on a conveyance and by the lessee on a lease. In
cases of Bonds, Release, Settlement, it is to be paid by the person making or drawing the
instrument. In case of exchange, it is to be paid by the parties in equal shares and in case of
partition, by the parties in proportion to their respective shares. In all other cases, it is to be paid
by the person executing the instrument.
18. Adjudication of stamp

A person can seek the opinion of the Collector of Stamps by making an application to him for
adjudication of stamp duty payable by such person on the instrument. For this purpose, the
person who is a party to the instrument has to furnish a true copy of the instrument and an
affidavit stating the facts and such other evidences as required, along with a fee of Rs. 100/-. The
Collectors opinion is final and conclusive. No appeal lies against his order of adjudication.
19. Consequences of undervaluation or short payment

a. Any officer registering any instrument of conveyance, exchange, gift, certificate of sale, deed
of partition or power of attorney to sell immovable property, deed of settlement or transfer of
lease or any person with authority to receive evidence or any person in charge of public office
before whom such instrument is presented, may

i. give notice for payment of adequate stamp duty by making up the deficit and penalty at 2%
p.m. of the deficit (not exceeding 200% of the deficit) or
ii. refer a true copy of such instrument to the Collector, if he has reason to believe that it is
undervalued.

b. On receipt of the instrument by the Collector, he can call for the difference between the
amounts of duty payable and actually paid.
c. In addition, he has to levy penalty of 2% p.m. (not exceeding 200% of the deficit) of
differential amount of duty or part thereof, where the persons mentioned in as have not levied
any penalty.

d. Such instrument will not be admitted in evidence by any person having the authority to
receive evidence, and/or registered unless penalty of 2% p.m. of the deficient stamp duty (not
exceeding 200% of the deficit) is paid along with unpaid duty.

e. Every person with authority to receive evidence and every person in charge of public office
can impound such an instrument when produced before such person.

f. On receipt of impounded document, the Collector can collect deficiency in stamp duty along
with penalty of an amount equal to 2% p.m. (not exceeding 200% of the deficit) of the deficit
portion of stamp duty or part thereof subject to a minimum penalty of Rs. 100.

g. A person can be punished with rigorous imprisonment for up to 6 months (not less than 1
month) and with fine up to Rs. 5,000, if it is proved that the instrument was undervalued or
short payment of duty was made with intention to evade duty.
Schedule I Rates (Important articles)
MAHARASHTRA
Article

Description

Stamp Duty

Affidavit
(Exemption: for use in the Court or Tribunal)

Rs. 20

AGREEMENT relating
a)
to shares & securities
b)

to hire purchase

Re. 1 for every Rs. 10,000 or

part
same duty as on lease Art. 36

c)

to transfer tenancy rights (per sq. metre)

Commercial Residential

i)

Greater Bombay

Rs. 2000

Rs. 200

ii)

Thane, Pune, Nagpur, Navi

Mumbai

Rs. 1000

Rs. 100

iii)

Other Municipal Corporation Rs. 400

Rs. 50

d)

to give power to a promoter for

development, sales, etc. of immovable
property

e)
General
Agreement for deposit of title deeds, pawn,
pledge or Hypothecation
1 for deposit of title deeds securing
amount of loan of Rs. 1 to Rs. 50 lacs
and above.

Rs. 5 for every Rs. 500 or part

Rs. 20

Rs. 50 to Rs. 50,000

2 for pawn, pledge or hypothecation

securing amount of loan, (repayable
after 3 mths) of

10

i)

up to Rs. 5,00,000

i)

Rs. 100 for every Rs.

1,00,000

ii)

over Rs. 5,00,000

ii)

Rs. 500 plus Rs. 250

for every Rs.
1,00,000 or part in
excess of Rs.
1,00,000

iii)

loan for export of goods

iii)

Rs. 100 for every Rs.

1,00,000

(50% of above where loan is repayable within 3

months)
Appointment in execution of a power in writing
not being a will
*
of trustees
*
of properties
Apprenticeship deed
(Other than Articles clerkship for Attorneys)

Rs. 100
Rs. 250
Rs. 50

Articles of Association of a company on the

share capital, nominal capital or increased share
capital (Exemption S. 25 companies)

Rs. 1,000 for every Rs. 5,00,000

or part thereof subject to a
maximum of Rs. 50,00,000

12
Award
13 & 14 Bond and Bottomry bond

Maximum Rs. 100

Rs. 20 for every Rs. 500 or part

15

Cancellation (Exemption: Revocation of will)

Rs. 100

17

Certificate or other document (Shares, Scrip, Stock, Re. 1 for every Rs. 1,000 or part
etc. including amount of premium)

24
25

Composition Deed
Conveyance (on the market value)

Rs. 200

Movable for every Rs. 500 or part

thereof

Rs. 15

Immovable
a)
Rural (BMR) for every Rs.
500 or part thereof

Rs. 35

b)

Rural (MPAPRA) for every

Rs. 500 or part thereof

Rs. 25

c)

Rural (any) (residential) for

Rs. 5
every Rs. 500 or part thereof

d)

Rural (any) non residential

for every Rs. 500 or part
thereof

e)

'C' class MC, and

Rs. 20
Cantonments, Hill Station
MCs etc. for every Rs. 500 or
part thereof

Rs. 15

f)

'B' class MC etc. for every

Rs. 500 or part thereof

Rs. 25

g)

'A' class MC etc. for every

Rs. 500 or part thereof

Rs. 30

h)

Municipal Corporations, BMR Rs. 40

MCs, Deolali, Dehu Road,
Ahmednagar for every Rs.
500 or part thereof

i)

Municipal Corporations of
Greater Bombay, Pune,
Thane (including adjoining
areas) Navi Mumbai,
Lonavala, Mahabaleshwar,
Panchgani, Panhala, and
Matheran for every Rs. 500
or part thereof

Concession in rates of residential

premises etc.

Rs. 50

a)

by or in favour of a Co-op.
Hsg. Society

b)

where provisions of
Maharashtra Ownership
Flats Act or Mah. Apartment
Ownership Act apply

c)

by Society in favour of its

member or incoming
member (by share or
otherwise)

d)

by a member to another
member including an
incoming member

e)

purchase of land in cases

covered by (a) to (d) above

Applicable Rates
Value up to Rs. 1 lac

Nil

Value - Rs. 1 lac to Rs. 2.50

lacs

0.5% of the value

Value - Rs. 2.50 lacs to Rs.

5.00 lacs

Rs. 1,250 + 3% of value over Rs.

2,50,000

Value - Rs. 5.00 lacs to Rs.

10.00 lacs

Rs. 8,750 + 6% of value over Rs.

5,00,000

Value - Above Rs. 10.00 lacs Rs. 38,750 + 8% of value over

Rs. 10,00,000

Amalgamation
Under the order of High Court u/s. 394
of the Companies Act, 1956

10% of MV of shares allotted in

exchange and consideration if
any paid but not exceeding the
higher of:

i)

7% of MV of the
immovable property
in Maharashtra or

ii)

0.7% of MV of shares
allotted in exchange
and consideration if
any paid.

Notes:
1 An agreement for sale providing for transfer of possession shall be deemed as Conveyance.
2.

Such agreement may be impounded in cases of inadequate stamp duty and may not be
admitted in evidence.

3.

Set off will be given at the time of conveyance of the duty paid on agreement.

4.

In case of transfer involving movable and immovable duty will be calculated on the value of
the items separately.

5 In case of amalgamation market value of shares of transferee company will be the value of
shares on stock exchange on the appointed day as per the scheme otherwise the date of
the court's order. In case where shares are not listed or not quoted, the value of shares to the
transferor company or the value determined by the collector.

27
28

Counterpart/duplicate
Customs or excise bond (where value exceeds
Rs. 2,500)

Maximum Rs. 20
Maximum Rs. 100

29

Delivery Order of goods from port, dock,

Rs. 10 for every Rs. 10,000 or
warehouse etc. by owner WHEN VALUE OF SUCH part thereof
GOODS EXCEEDS Rs. 100

31
32

Marriage registration
Exchange

Rs. 50
Same duty as on conveyance on
the value of that property having
greater value

34

Gift (other than a settlement, will or transfer)

Same duty as on conveyance

35
36

Indemnity Bond
Lease including sub-lease:
a)
where rent is fixed and no premium is
paid or payable;

Rs. 200
Duty as on conveyance on:

i)

lease up to 3 years

i)

average annual rent

ii)

3 years to 10 years

ii)

3 x avg. annual rent

iii)

10 years to 29 years without iii)

a renewal clause

5 x avg. annual rent

iv)

exceeding 29 years & 10

years with renewal clause

10 x avg. annual rent

iv)

b)

where premium is fixed and no rent is

payable

Duty as on conveyance on the

amount of premium

c)

where both premium and rent are

payable

Aggregate of (a) and (b) above

Notes:
1.

Rent paid in advance will be treated as premium

36A

2.

Taxes, repairs etc. payable by lessee will be

treated as rent

3.

An agreement for lease will not be treated as

lease if there is no immediate demise

Leave & License

a)
With fee or rent without security deposit
or money advanced

b)

37
39

40

Rs. 2,000

ii)

Up to 3 years

Rs. 10,000

iii)

Exceeding 3 years

As per A-36 lease

With security deposit or money

advanced with or without fee or rent

As per A-36 Lease plus 1% of

the security deposit or money
advanced

Letter of allotment of shares

MEMORANDUM OF ASSOCIATION OF A
COMPANY

Re. 1

a)

if accompanied with Articles

Rs. 200

b)

if not so accompanied

Same duty as under Article 10

Mortgage Deed
a)
where possession is given

b)

42
46

Without renewal
i)
Up to 1 year

where possession is not given

c)
collateral
Notarial Act
Partition

Notes:
1.

The value of largest share will be excluded for

duty

2.

In case of order of partition by a Civil Court rebate

will be given to the extent of the Court Fees paid

Same duty as on conveyance on

the amount secured
Rs. 10 for every Rs. 500 or part
subject to a maximum of Rs.
2,00,000
Rs. 200
Rs. 25
Rs. 10 for every Rs. 500 or part
of the value of the separated
share or shares

3 0.5% in case of agricultural land

47

Partnership
1.
Instrument of
A.
Contribution in cash
a)
where share of contribution Rs. 500
does not exceed Rs. 50,000

b)

48

where it exceeds Rs. 50,000 Rs. 500

for every Rs. 50,000 or part
subject to a maximum of Rs.
5,000

B.

Contribution by way of property

2.

Dissolution or Retirement

Same duty as on conveyance

under A.25 on the market value
of property

a)

where any property is

Same duty as on conveyance
transferred to a partner other under A.25 on the market value
than the one who brought it subject to min. of Rs. 100

b)

in any other case

Rs. 200

Power of Attorney
a)
for sole purpose of registration

Rs. 100

b)

for suits in small causes court

Rs. 100

c)

for acting in a single transaction to one

or more person

Rs. 100

d)

for acting in more than one transaction

or generally to one person

Rs. 100

e)

for acting in one or more transactions or Rs. 100

generally to one or more persons

f)

for consideration and authorisation to

sell an immovable property

Same duty as on conveyance on

the market value

g)

for construction, development, sale etc.

to a developer or promoter

Rs. 5 for every Rs. 500 or part

h)

in any other case

Rs. 5 for each person

Notes :
1.

In case of (f), set off will be given on conveyance

2.

Persons belonging to one firm shall be deemed to

be one person
3 Duty payable will be Rs. 100 only while duty is
already paid under article 5 (g-a) on agreement to
give power of attorney

52
54

55

Release
where value exceeds Rs. 2,500
Security Bond

Settlement
A.
a)

b)

58
61

Rs. 200
Rs. 10 for every Rs. 500 or part
of the amount secured subject to
a maximum of Rs. 2,00,000

for charitable or religious

purpose

Rs. 10 for every Rs. 500 or part

in any other case

Same duty as on conveyance

B.
Revocation
Surrender of Lease
Trust
A.
a)
where there is disposition of
property

Maximum Rs. 200

Duty as per A.36

61
A.

B.

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i)

for charitable or religious

purpose

Rs. 10 for every Rs. 500 or part

ii)

in any other case

Same as on conveyance

b)

where there is no disposition Maximum Rs. 200

Revocation

Maximum Rs. 200