Stamp duty is a tax that has to be paid by all property buyers to the state government to legally register their property in the government records. This is a one-time mandatory tax that has to be paid so that there is no legal dispute that will come later. While the stamp duty has to be paid right at the beginning of registering the property deal, there are times when the property transaction doesn’t materialise. If the property has not been sold or bought, then obviously it wouldn’t have been registered in the government records. Then, what happens to the stamp duty that has been paid. Do the home buyers get a refund of the stamp duty? The answer is yes and no. Yes, if they apply within the allowed time limit given by the government of Maharashtra. We explore in detail in this guide.
When can you get a stamp duty refund in Maharashtra?
You can get a refund of stamp duty Maharashtra if:
- The stamp duty paper is not fit for use due to writing mistakes.
- The stamp paper is unsigned and complete or partial information is filled but is intended not to be used.
- The stamp paper is signed but the transaction is found to be illegal by the party as per Section 31 of Specific Relief Act.
- The court finds the transaction to be entirely illegal since the beginning (Void /ab/ initio) as per Section 31 of Specific Relief Act.
- The person whose signature is essential refuses to sign or has died before signing.
- Any party to the stamp paper document declines signing it.
- Any party to the stamp paper document does not comply with the terms and conditions.
- The value of the stamp for the document is insufficient and the transaction has been completed by using another stamp paper with the correct value.
- The stamp duty paper is spoiled and both parties have executed another stamp paper document for the same purpose.
What are the documents required to apply for stamp duty refund in Maharashtra?
The following documents are generally required for a stamp duty refund application in Maharashtra:
- Original stamp paper: The original stamp paper that is unused or defective should be submitted.
- Refund application form: This form should be made within six months from the date when the stamp paper was purchased.
- Affidavit: Notarised affidavit that mentions why a stamp duty refund is sought.
- Cancelled document: Cancelled sale agreement if the stamp duty refund is asked because of cancellation of document.
- Payment proof: Proof that the stamp duty was paid in the form of receipt.
- Bank details: Cancelled cheque/ bank account details for processing the stamp duty refund
- Identity Proof: Aadhaar card, PAN number etc.
How to get a refund of stamp duty in Maharashtra online?
To initiate stamp duty Maharashtra refund online, one has to log on to the official IGR Maharashtra website. Mentioned below is the procedure in detail.
- Log on to IGR Maharashtra. Under online services, click on stamp duty refund.
- You will reach https://appl2igr.maharashtra.gov.in/refund/
- After accepting the T&C, click on New Entry.
- You will reach the following page where you have to enter a mobile number and click on OTP.
- Enter OTP.
- Enter the captcha and click on submit.
Then, you will get the stamp duty Maharashtra refund token number. Now create a password, confirm the password, enter captcha and press ‘Submit’.
- You will first see a pop up message asking if you want to see old data or not.
- Start with selecting for which you want for refund- stamp duty or registration fee.
- Then enter individual details, address, bank account number and the reason for the refund.
- Enter detailed information about the document such as if it is executed or not, registered or not etc. in the particulars of the document.
- If the document is registered, and you want a stamp duty refund in Maharashtra, you have to enter the document number, date and SRO details. Likewise, cancellation deed if registered, then registration number and SRO details should be entered.
- Next enter particulars of the stamp including the type- whether it is e-payment, e-SBTR or franking, name of the stamp vendor along with his address, name and details of purchaser of stamp, value of stamp etc.
- On entering all stamp related details, an ‘Image Code’ in red will appear. You will have to mention that code in the blank frame and press on the ‘register’ button.
- Post this, your stamp duty in Mumbai/ stamp duty Maharashtra refund information is submitted and you will see the ‘acknowledgement’.
- Enter your stamp duty in Mumbai/ stamp duty Maharashtra refund token number in the application that has to be submitted to the office of collector of stamps for initiation of stamp duty refund Maharashtra.
How to check the status of stamp duty refund in Maharashtra?
- To check status log on to https://appl2igr.maharashtra.gov.in/refund/
- Enter refund token number, password and click on view status. In case you want to edit the refund request, click on modify.
Physical submission of stamp duty refund application
Note that only data entry in this module will not be considered as submission of the refund application. The applicant has to submit the refund application physically to the to the
- a) Concerned collector of stamps for a refund of stamps within the time limit prescribed under the Maharashtra Stamp Act and
- b) Concerned joint district registrar for refund of registration fee (which is not utilised for registration of document) within 6 months from date of e-payment.
Note that a small fee is deducted from the stamp duty refund amount as administrative charges. In case of stamp duty refund for e-stamp papers, the stamp duty refund process in Maharashtra is handled by way of the electronic system that was used to issue the stamp duty.
How does the stamp duty refund module of IGR Maharashtra help?
By logging on to the stamp duty refund module, you can
- Enter the data of their refund application properly,
- Modify the data, if required,
- Prepare the application, required affidavit etc.,
- Submit the data and get the Refund ID Number
- Know the status of the application (i.e. Actions taken by Department) online and through SMS
- Download the copies of the letter or the order issued by the authority.
When do you not get stamp duty refund in Maharashtra?
- Stamp duty on executed documents is non-refundable.
- Stamp duty refunds are not allowed for documents that are incomplete or whose date is beyond the allowed six months.
Housing.com POV
The IGR Maharashtra has a well charted process for stamp duty refund that involves submitting an online application, checking its status and then submitting the form offline. But these steps have to be followed within six months after which the stamp duty refund will be rejected. While one can follow and execute these steps on their own, for any clarification, aid of an expert legal help is recommended.