Stamp Duty on PAAA: What Members Actually Pay in Maharashtra

Most society members never learn that their PAAA can attract just Rs 100 in stamp duty.

Once the Development Agreement is fully stamped, the member's PAAA for the rehabilitation flat cannot be charged more than Rs 100 in stamp duty, under Section 4(1) of the Maharashtra Stamp Act 1958. Registration fees are separate, and extra area bought for money attracts normal duty.

Why should the PAAA cost only Rs 100?

The principle is simple: the government does not charge stamp duty twice on the same transaction. In a redevelopment, the society and the developer sign a Development Agreement, and that document is fully stamped. The Permanent Alternate Accommodation Agreement (PAAA) that you, as a member, later sign with the developer covers the very same transaction — your rehabilitation flat in the new building. Under Section 4(1) of the Maharashtra Stamp Act 1958, such a related instrument can be charged only Rs 100.

This was settled by the Bombay High Court in Writ Petition (OS) 4575/2022, and the Inspector General of Registration and Controller of Stamps, Maharashtra, issued a circular giving effect to it. We have set out the reasoning in more detail on this judgment page.

What is not covered by the Rs 100 rule?

Two things members often get wrong.

Extra area bought for money. If you purchase additional carpet area from the developer over and above your entitlement, that portion is a normal sale and attracts ordinary stamp duty on the consideration.
Registration fees. Registration is a separate charge from stamp duty. The Rs 100 concession does not remove it.

The concession also applies only to the member's rehabilitation flat, not to a fresh sale flat bought in the new building.

How do I work out what I will actually pay?

Start with the Development Agreement — check that it has been properly stamped, because the whole benefit rests on that. Then separate your free entitlement from any extra area you are buying. Only the extra area needs a duty calculation.

For ordinary purchases in Mumbai, duty runs at 6% for men and 5% for women, including the 1% metro cess, with registration at 1% capped at Rs 30,000. Put your own figures into our stamp duty and 80C calculator to see the amount, and whether you can claim it under the Rs 1.5 lakh Section 80C cap in the year of payment under the old regime.

If a sub-registrar disputes the Rs 100 position, carry the circular and take advice from a chartered accountant. See also our possession and corpus guide.

Work it out for your own society

Work out stamp duty, registration fee and your Section 80C claim on any extra area you buy in redevelopment.

Open the Stamp Duty & 80C Calculator

Common questions

Does the Rs 100 stamp duty apply automatically?

It applies where the Development Agreement between the society and the developer has already been fully stamped, because the PAAA then relates to the same transaction. In practice you may need to show the sub-registrar the Bombay High Court order in Writ Petition (OS) 4575/2022 and the circular issued by the Inspector General of Registration. Keep the stamped Development Agreement handy.

Do I still pay registration fees on the PAAA?

Yes. Registration fee is a separate charge from stamp duty, and the Rs 100 concession does not remove it. Budget for it separately when you plan your costs. Our stamp duty and 80C calculator at /tools/stamp-duty-80c-calculator/ shows duty and registration separately so you can see the full outgo for your own flat.

What if I buy extra carpet area from the developer?

That portion is treated as an ordinary purchase and attracts normal stamp duty on the consideration you pay. Within Mumbai municipal limits that is 6% for men and 5% for women, including the 1% metro cess, plus 1% registration capped at Rs 30,000. Only your free rehabilitation entitlement enjoys the Rs 100 position.