Stamp Duty is a state subject and is an integral part of all immovable property transactions that need registration. It could be a sale, mortgage, or lease of immovable property. Whenever any such real estate transaction is done, adequate stamp duty needs to be paid, and the document needs to be registered at the office of the concerned sub-registrar.
Consequences of non-payment of stamp duty
Before delving into the details of the Amnesty Scheme, it is important to learn about the consequences of non-payment of stamp duty.
- In case, the stamp duty is not paid on any particular transaction, the document of that transaction may not be allowed as evidence in any legal proceedings. The document loses its legal standing.
- The judicial authorities may also impound the document if you present them as evidence.
Not an ideal situation to be in, right?
Can the situation be set right?
Yes, of course. Maharashtra government allows you to pay the differential amount in the stamp duty.
Besides, you are also charged a penalty, which is calculated at 2% per month of the deficient stamp duty from the date of registration /execution of the document till the date on which you are making the payment. The maximum penalty that can be levied in such cases is capped at 400% of the deficient duty.
This can work up to quite a big amount if a significant time has elapsed since the execution of the document.
Benefits of Maharashtra Stamp Duty Amnesty Scheme 2019
If you discover that you have done a real estate transaction paying deficient stamp duty, then you can make use of this Amnesty Scheme. This is also particularly useful for Maharashtra Housing and Area Development Authority (MHADA), City and Industrial Development Corporation of Maharashtra Limited (CIDCO), and Slum Rehabilitation Authority (SRA) for whom this scheme is applicable even if no stamp duty has been paid.
Provisions of the Amnesty Scheme, 2019
The Maharashtra Stamp Duty Amnesty Scheme, which is operational for a period of six months from March 1, 2019 to August 31, 2019, proposes to limit the penalty payable on deficient stamp duty transactions to 10% of the deficient duty from 400%.
The procedure
- Use Form A prescribed under the scheme and fill up all required details.
- Attach the document in original on which deficient stamp duty was paid and self-attested copies of other supporting documents if required.
- Apply for the scheme before the end of the scheme on August 31, 2019.
- The deficient duty, along with the penalty, will be evaluated and intimated to you. You have a window of 60 days to make this payment, failing which your application will be considered null and void.
