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The Navi Mumbai Municipal Corporation (NMMC) has introduced amendments to its property transfer fee policy, aiming to simplify procedures and improve transparency. Approved by the Commissioner and Administrator, the revisions include a ready reckoner-based calculation system, reduced charges for inheritance transfers, and a revised deadline for late fee applicability. The updated structure incorporates clear mathematical methods, provisions for various document types, and specific rules for corporate ownership changes. The late fee provision will apply from October, giving property owners time to comply with the updated requirements.
The Navi Mumbai Municipal Corporation has implemented major changes to the property transfer fee framework, seeking to ensure greater clarity and ease for citizens. As per a resolution passed last month with the Commissioner and Administrator Dr Kailash Shinde's approval, the changes align with adjustments in the Reserve Bank of India's lending rate, updated late fee rules, and other procedural refinements. Orders for the revised policy were issued by Deputy Commissioner Dr Rahul Gethe of the Municipal Tax Department. Advertisement
The reforms will take effect immediately, though the new late fee provision will apply from October to allow residents to complete transfers in time. Under the updated method, documents such as registered purchase deeds, sale deeds and gift deeds, where the property value is determined by the Registration and Stamps Department based on prevailing market rates, will attract a transfer duty of 0.20% of the consideration amount or the ready reckoner value multiplied by 0.20%, whichever is higher.
For inheritance-related transfers without any monetary transaction, the fee will be the lower of the stamp duty fixed by the Registration and Stamps Department or INR 500. Under the Maharashtra Municipal Corporation Act provisions, notice must be given to the Commissioner within three months for general transfers and within one year for inheritance-related transfers. If the time limit is exceeded, a late fee will be levied on the payable transfer fee amount at the RBI lending rate plus 3% per annum, calculated based on the April rate of the current year.
The revised rules also clarify that for documents involving both a part agreement and a transfer agreement, the date of the agreement where full stamp duty has been paid will be considered for calculating the transfer duty. For corporate entities such as limited companies, private limited firms and partnerships, changes in name or PAN will result in a transfer fee calculated on the ready reckoner rate applicable in the year of such change.
In cases where the registered document does not specify the consideration value or ready reckoner rate, the fee will be determined according to the ready reckoner rate for the year of registration. In exceptional situations where ownership changes occurred multiple times without a transfer being recorded, the highest of the ready reckoner rate at the last registration or the consideration value will be used.
The municipal corporation has urged property owners to complete transfer processes promptly. Detailed guidelines are available at the Tax Department and on the official NMMC website.
By delaying the implementation of late fee provisions until October, the civic body has allowed residents time to adapt to the changes. These measures are expected to streamline transactions, ensure accurate fee determination, and reduce disputes, thereby improving the overall efficiency of property transfers within the city.
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