Whoever said wishes don’t come true hasn’t explored our offers!
  • Stamp Duty

    What Is Stamp Duty?

    Stamp duty is a government tax, which is levied on all legal property transactions. Stamp duty is, therefore, a tax which is evidence, as it were, of any purchase or sale of a property between two or more parties. Stamp papers, which have to bought either in the name of the seller or buyer is valid for 6 months, provided the stamp duty is paid without any delay.

    Stamp Duty Act:

    Stamp duty is paid as per the provisions of Section 3 of the Indian Stamp Act, 1899. Stamp duty is levied to boost revenue for local governments besides lending legality to a document.

    Stamp Duty Payment:

    It is important to note that stamp duty should be paid in full and without any delay, failing which, a penalty is levied. A stamp duty document is a legal instrument which has evidentiary value (admissible in a court of law as evidence). Stamp duty has to be paid prior to execution (signature by an individual’s party) of a given document, the next day or on the day of document execution. Stamp duty is paid by a buyer in most cases. However, both the seller and the buyer have to bear the burden of stamp duty for property exchange cases. As per Section 13 of Indian Stamp Act, 1899, an individual executing a given instrument has to cancel the stamp (adhesive) by writing his initials or name across it. If a stamp is not cancelled in the aforementioned method, the document is considered unstamped. In other words, the stamp should be visible on the face of an instrument and therefore, cannot be applied to another instrument.

    Stamp Duty Charges:

    Stamp duty rates differ in various states across the country as stamp duty in India, is a state subject. However, the central government fixes the stamp duty rates of specific instruments. As mentioned above, delay in the payment of stamp duty will attract a penalty of 2% on a monthly basis (up to 200% of remaining amount).

    Stamp Duty on Property Registration:

    Legal evidence of ownership or transfer of a property is mandatory. To the end, the buyer, in most cases, has to register his or her name in the municipal records. The buyer has to pay a stamp duty at the time of registration. The amount of stamp duty may vary from one state to another. Stamp duty also depends on whether a given property is new or old.

    Documents which require Stamp Duty:

    Some of the documents which require stamp duty are listed below:

    1. Transfer instruments
    2. Deed of partition
    3. Reconveyance of mortgaged property
    4. Mortgage deed
    5. Certificates of sale
    6. Gift deed
    7. Exchange deed
    8. Tenancy agreement
    9. Power of attorneys
    10. License agreement
    11. Lease deeds

    Stamp Duty Rates:

    Stamp duty rates in various states is listed in the table below:


    Stamp Duty (Rate)


    8.25% of consideration

    Goa, Daman and Diu

    8% of consideration


    12.5% of consideration

    Madhya Pradesh

    7.5% of market value


    7.5% of market value


    7.5% of consideration


    6% of consideration

    Tamil Nadu

    8% of market value


    11% of market value of property

    Uttar Pradesh

    8% of market value or consideration, (whichever is greater)


    5% of consideration


    3% stamp duty + 5% surcharge as per Delhi Municipal Corporation Act,1957


    8.5% (transfer of immovable property within the Municipal Corporation)


    4.6 % (up to Rs.50,000) of consideration

    6 % (Rs.50,000 to Rs.90,000) of consideration

    8% (Rs.90,000 to Rs.1,50,000) of consideration

    9.9% (above Rs.1,50,000) of consideration


    7% + 2% duty on transfer (within municipal limits)


    7% + 2% duty on transfer


    10% of market value (within Bangalore Metropolitan Regional Development Authority); 9% (Corporation or Town Panchayat) of market value


    10% of market value ( Municipal Corporation of Pune, Navi Mumbai)

    Stamp Duty Calculator:

    Stamp duty calculators can be used to find the stamp duty applicable on a given property in any state across the country by entering various details such as property value and the name of a state.

    For instance: If property of Rs.10 lakh is located in BBMP/corporation area, the stamp duty value will be Rs. 56,000. If the said property is located in BRA/BMRA/village area, the stamp duty value will be Rs.56,500.

    Stamp Duty Calculation:

    You should be aware of the fact that stamp duty charges on property registration vary from state to state. There are multiple parameters used by the authorities to calculate charges such as involving the type of building or plot involved. For example, some states consider the constructed area for calculating stamp duty and registration charges for independent houses while a figure is arrived at on the basis of the built up area in case of apartments. The stamp duty can also be revised by states annually as per the state budget. In some states, women get a concession on both stamp duty and registration charges.

    Here are some of the factors that you must keep in mind on the implication of stamp duty at the time of property registration.

    • The calculation is primarily done on the basis of the “Guidance Value” of the property, the minimum value at which the property should be registered. The value is decided by the competent authority under the state government.
    • The charges are indirectly proportional to the market value of the property and other aspects such as market performance.
    • The location of the property such as urban or rural area also has a say in deciding the stamp duty payable.
    • Other levies such as state and central taxes are also applicable on registration and stamp duty charges.
  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.