Stamp Duty
A state government tax paid on property transactions to legally record the sale deed or transfer of property ownership.
Stamp Duty is a tax levied by state governments on property transactions. It's called "stamp" duty because historically, a physical stamp was affixed to the document to show tax was paid.
Purpose
- Provides legal validity to the transaction
- Documents are admissible in court only if properly stamped
- Major source of revenue for state governments
How it's calculated
- Agreement value (sale price), OR
- Circle rate/Ready Reckoner rate (government value)
- Whichever is HIGHER
| State | General Rate | Women Rate |
|---|---|---|
| Maharashtra | 6% | 5% |
| Karnataka | 5.6% | 5.6% |
| Delhi | 6% | 4% |
| Tamil Nadu | 7% | 7% |
| Gujarat | 4.9% | 4.9% |
Additional Charges
- Registration charges: Typically 1% additional
- Mumbai: Additional 1% metro cess
- Some states: Additional surcharge
Payment: Stamp duty must be paid before or at the time of registration. Non-payment or underpayment can result in penalties up to 10x the deficient amount.
Exemptions
- Women buyers
- First-time homebuyers
- Agricultural land
- Gift deeds within family
Examples
For a ₹1 crore property in Maharashtra, stamp duty would be ₹6 lakh (6%)
A woman buying in Delhi would pay ₹4 lakh on ₹1 crore vs ₹6 lakh for a man