Maharashtra Govt introduces Ordinance to amend Stamp Duty Act, aims to generate additional Rs.2,000 crore annually

Stamp duty hike: Affidavits increase from Rs.100 to Rs.500; share capital duty raised to Rs.1 cr

In a strategic move to boost state revenue, the MahaYuti government has announced an ordinance amending the Maharashtra Stamp Act of 1958. The ordinance, effective immediately, proposes significant increases in stamp duty rates on affidavits, agreements, and related documents.

Under the new regulations, the stamp duty on affidavits will rise from Rs.100 to Rs.500, while the stamp duty on share capital has been elevated to Rs.1 crore from the previous Rs.50 lakh.

The amendments are expected to enhance revenue from stamp duty and registration by nearly Rs.2,000 crore annually.

The state cabinet, chaired by Chief Minister Eknath Shinde, approved the amendments during a meeting held on September 30. This initiative aligns with similar reforms implemented in Karnataka and aims to simplify the charging structure under various articles of the Maharashtra Stamp Act.

According to a statement from the state revenue department, “Schedule I to the Maharashtra Stamp Act is amended to simplify the chargeability under various articles. In general, wherever Rs.100 is stipulated, it will be substituted with Rs.500. Additionally, Article 4 has been revised to establish a minimum stamp duty of Rs.500 for affidavits executed before government or semi-government bodies.”

Further adjustments include changes to Article 47, which sets a minimum stamp duty of Rs.500 and a maximum of Rs.50,000 for partnership instruments. Similarly, Articles 52 and 58 will also see the stamp duty rise to Rs.500 from Rs.200.

Rajesh Kumar, Additional Chief Secretary of the State Revenue Department, stated, “To promote simplicity and uniformity in the levy of stamp duty and enhance government revenue, we are proposing amendments to certain articles of Schedule I to the Maharashtra Stamp Act, 1958. Given that the state legislature is not currently in session, immediate action was deemed necessary.”

The revenue department noted that stamp duty and registration serve as crucial sources of revenue for the state, following the Goods and Services Tax (GST). In the fiscal year 2023-24, Maharashtra successfully collected Rs.40,000 crore through these channels, underscoring their importance in the state’s financial landscape.

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