Fadnavis Introduces Legislation to Revise the Maharashtra Stamp Act

Nagpur, Dec 17 (NationPress) Chief Minister Devendra Fadnavis on Tuesday introduced a bill in the Assembly intended to revise the Maharashtra Stamp Act, 1958, increasing the stamp duty on affidavits, agreements, and related documents to Rs 500 from the existing Rs 100.

The proposed amendment, modeled after Karnataka's legislation, also raises the stamp duty on share capital to Rs 1 crore from the previous Rs 50 lakh.

Prior to the Assembly elections, the state government issued an ordinance on October 14 to elevate the stamp duty as both legislative houses were not in session. The state cabinet, led by former Chief Minister Eknath Shinde, approved the amendments during a meeting on September 30.

The bill states, "Schedule I to the Maharashtra Stamp Act is revised to streamline the chargeability under various articles, and in general, wherever Rs 100 is stipulated, it is replaced by Rs 500. Article 4 is modified to impose a minimum stamp duty of Rs 500. Affidavits executed before government or semi-government entities are now included under this Article. Article 10 is revised to enhance the stamp duty rate and the maximum limit on share capital and increased share capital."

Additionally, Article 47 is amended to alter the minimum stamp duty to Rs 500 and a maximum of Rs 50,000 for partnership instruments, while the stamp duty for partnership dissolution is also set at Rs 500. Articles 52 and 58 are updated in accordance with the general amendment to impose a stamp duty of Rs 500 instead of Rs 200.

The Revenue Department indicates that the modifications to the Maharashtra Stamp Act are expected to boost revenue from stamp duty and registration by approximately Rs 2,000 crore. Stamp duty and registration serve as significant sources of revenue mobilization, following state GST. In the fiscal year 2023-24, the state collected Rs 40,000 crore through stamp duty and registration.