Mumbai: The Maharashtra state government has announced a significant increase in stamp duty fees to boost revenue, a move that will raise costs for citizens requiring stamp papers for various documents. The ₹100 stamp paper, once commonly used, will now be replaced in most cases by a ₹500 stamp paper.
Chief Minister Devendra Fadnavis introduced a bill in the Legislative Assembly on Tuesday to formalize the changes, following an ordinance issued on October 14, 2024. According to the proposed rules, ₹500 stamp duty will be charged for government work orders up to ₹10 lakh, while orders between ₹10 lakh and ₹25 lakh will attract a 0.1% fee. Rental agreements and transfers of ancestral property rights will now require ₹200 stamp papers.
Banks have already begun demanding ₹500 stamp papers for transactions, including power of attorney documents, further adding to the financial burden on citizens. The limited availability of ₹500 stamp papers has created additional challenges, with government-approved vendors selling them for ₹500 to ₹600. Meanwhile, ₹100 stamp papers remain abundant and are being sold at a ₹10 premium by vendors.
Certain designated banks have been authorized to provide a franking facility, charging ₹3 for processing fees on behalf of the state government. As the changes take effect, concerns over accessibility and affordability of higher-value stamp papers are expected to grow.