Maharashtra Government Introduces Ordinance dated October 14, 2024 on Stamp Duty Act to Boost Revenue, the amendment aims to generate an additional Rs.2,000 Crore annually.

The MahaYuti government has issued an ordinance to amend the Maharashtra Stamp Act, 1958. The state cabinet, led by Chief Minister Eknath Shinde, approved the amendments during its meeting on September 30. According to the revenue department, these amendments to the Maharashtra Stamp Act are expected to boost revenue from stamp duty and registration by up to Rs.2,000 crore. The changes are modelled after similar measures in Karnataka. The ordinance has been in effect since Monday. The key points from the document can be explained as follows:

• Minimum Stamp Duty: Raised to ₹500 for most legal documents.

• Increased Stamp Duty: Applicable on legal instruments such as affidavits, agreements, articles of association, arbitral awards, partnership deeds, and works contracts.

• Affidavits, Agreements, Apprenticeship Deeds, Divorce Decrees, and Similar Documents: Stamp duty increased from ₹100 to ₹500.

• Articles of Association: Duty raised to 0.3% (max ₹1 crore).

• Arbitral Awards: Duty now ₹37,500 + 0.5% for amounts above ₹50 lakhs, with higher rates for awards over ₹5 crores.

• Partnership Deeds: Maximum duty increased to ₹50,000.

• Works Contracts: For contracts over ₹10 lakhs, a new rate of ₹1,000 + 0.1% applies.

State Revenue Department Additional Chief Secretary Rajesh Kumar stated that amendments to certain articles in Schedule I of the Maharashtra Stamp Act, 1958, aim to simplify and standardise stamp duty while increasing government revenue. With the State Legislature not in session, the Government of Maharashtra finds immediate action necessary.

The revenue department noted that stamp duty and registration are major revenue sources after state GST, with Rs 40,000 crore collected in 2023-24.

Tap here for the Ordinance