Stamp duty on affidavit increased to ₹500 from ₹100; govt passes bill

In a bill tabled in the Legislative Assembly on Tuesday to amend the Maharashtra Stamp Act 1958, the state government proposed to increase the stamp duty for indemnity bonds, exchange of property, agreements, memorandum of agreements, and share warrants, to ₹500 from ₹100 and ₹200

MUMBAI: In a bill tabled in the Legislative Assembly on Tuesday to amend the Maharashtra Stamp Act 1958, the state government proposed to increase the stamp duty for indemnity bonds, exchange of property, agreements, memorandum of agreements, and share warrants, to ₹500 from ₹100 and ₹200. The stamp duty on share capital has also been increased in the proportion of the value of the agreement. With this, the government expects an additional income of ₹1,500 crore per year.

Stamp duty on affidavit increased to ₹500 from ₹100; govt passes bill

The government had taken the decision in October itself, ahead of the Assembly polls, and had issued an ordinance regarding it. The ordinance was converted into the bill and tabled in the lower house.

“The rate was fixed several years ago; the revision was under consideration. The stamp duty for 12 articles mentioned in the Act has been increased to ₹500 from ₹100 and ₹200. Similarly, the merger, de-merger of companies, share capital-related documents would attract higher stamp duty, in slabs. If the amount of the document is not more than ₹50 lakh, the stamp duty would be 0.75%, it would be 0.5% for amount ranging between ₹50 lakh and ₹5 crore. For amount above ₹5 crore, the stamp duty would be 0.25%,” the bill states.

Article 47 is being amended to change the minimum stamp duty of ₹500 and maximum of ₹50,000 for the instrument of partnership. While Articles 52 and 58 are being amended on the lines of general amendment to charge a stamp duty of ₹500 in place of ₹200.

Stamp duty and registration are the second highest source of revenue generation in the state after goods and services tax. In 2023-24, the state government generated around ₹41,000 crore from stamp duty and registration alone.