Maharashtra Government Brings Ordinance on Stamp Duty Act, Expects To Generate Additional INR 2,000 Crore Annually

Mumbai, October 15: The MahaYuti government has released an ordinance to amend the Maharashtra Stamp Act, 1958 proposing the increase in stamp duty on affidavits, agreements and related documents to Rs 500 from the present Rs 100. The stamp duty on share capital has been increased to Rs 1 crore from Rs 50 lakh. The ordinance was brought on Monday. According to the revenue department, the amendments to the Maharashtra Stamp Act will help increase the revenue from stamp duty and registration up to almost Rs 2,000 crore. The amendment has been proposed on the lines of Karnataka. The ordinance has come into effect from Monday. The state cabinet chaired by Chief Minister Eknath Shinde had cleared the amendments at its meeting held on September 30.

"Schedule I to the Maharashtra Stamp Act is amended to simplify the charge ability under the various articles and in general wherever Rs 100 is provided it is substituted by Rs 500. Article 4 is amended to charge a minimum stamp duty of Rs 500. The affidavit needs to be executed before government or semi-government bodies are brought in the purview of this Article," said the state revenue department note submitted to the cabinet. Article 10 has been amended to increase the stamp duty rate and maximum limit on share capital and increased share capital. Toll-Free Entry to Mumbai for Cars, SUVs: Commuters’ Time, Fuel Will Be Saved, Pollution and Traffic Will Decrease, Says Maharashtra CM Eknath Shinde (Watch Video).

Further, Article 47 was amended to bring a change in minimum stamp duty of Rs 500 and a maximum of Rs 50,000 to the instrument of partnership and to change stamp duty of Rs 500 in case of dissolution of partnership. Articles 52 and 58 were amended on the lines of the general amendment to charge a stamp duty of Rs 500 instead of Rs 200.

State Revenue Department additional chief secretary Rajesh Kumar said, "With a view to bring simplicity and uniformity in levy of stamp duty and to increase the government revenue, it is proposed to amend certain articles of Schedule I to the Maharashtra Stamp Act, 1958. As the house of the State Legislature is not in session and the Government of Maharashtra is satisfied that circumstances exist which render it necessary for him to take immediate action further to amend the Maharashtra Stamp Act.’’ Uddhav Thackeray Eyeing Opposition Leader’s Post After Being Snubbed by MVA Allies on Maharashtra CM Dream: Eknath Shinde.

According to the revenue department, stamp duty and registration is one of the major sources of revenue mobilisation after the state GST. In 2023-24, the state had mopped up Rs 40,000 crore through stamp duty and registration.

(The above story first appeared on LatestLY on Oct 15, 2024 01:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).