When purchasing a property, buyers are required to pay taxes such as stamp duty and registration charges to complete the property registration process. Stamp duty serves as proof of the legal transfer of property ownership from the seller to the buyer.
Stamp duty and registration charges are important taxes which a homebuyer must pay to the respective city authorities to register a property in their name. Different State governments levy different rates of stamp duty and registration fee. Read on below to understand more about stamp duty calculator and the current stamp duty and registration rates across India in 2024.
What is Stamp Duty on the property?
Introduced in the late 19th century, Stamp Duty in India is a tax imposed on homebuyers during property purchases. It is levied by the State government on various types of real estate properties, including freehold or leasehold units, agricultural and non-agricultural land, independent houses or villas, as well as residential flats or commercial units.
Current stamp duty rates across States - 2024
Once you grasp the significance of real estate stamp duty, understanding how to calculate it becomes essential. Utilizing a stamp duty calculator enables you to accurately determine these charges. Many people often search online for methods to ascertain the stamp duty value of property in India. Here is a comprehensive state-wise list of stamp duty and registration charges, providing current rates applicable in your specific state.
| States | Stamp Duty Rates | Registration Charges |
|---|---|---|
| Andhra Pradesh | 5% | 0.5% |
| Arunachal Pradesh | 6% | 1% |
| Assam | 8.25% | |
| Bihar | Male to Female - 5.7% Female to Male - 6.3% Other cases - 6% |
2% |
| Chhattisgarh | 5% | 4% |
| Goa | Upto Rs 50 lakh - 3.5% Rs 50 - Rs 75 lakh - 4% Rs 75 - Rs 1 crore - 4.5% Over Rs 1 crore - 5% |
3% |
| Gujarat | 4.90% | 1% No charges for female |
| Haryana | For male - 7% in urban areas For female - 5% in urban areas |
Upto Rs 50,000 |
| Himachal Pradesh | 5% | 4% for female (till Rs 80 lakh) 8% for female (above Rs 80 lakh) 6% for male (till Rs 50 lakh) 8% for male (above Rs 50 lakh) |
| Jammu and Kashmir | 5% | |
| Jharkhand | 4% | 3% |
| Karnataka | 5% (above Rs 45 lakh) 3% (Rs 21-45 lakh) 2% (Less than Rs 20 lakh) |
1% |
| Kerala | 8% | 2% |
| Madhya Pradesh | 7.50% | 3% |
| Maharashtra | 6% for male 5% for female |
1% |
| Manipur | 7% | 3% |
| Meghalaya | 9.90% | |
| Mizoram | 9% | |
| Nagaland | 8.25% | |
| Odisha | 5% (Male) 4% (Female) |
2% |
| Punjab | 7% (Male) 5% (Female) |
1% |
| Rajasthan | 5% (Male) 4% (Female) |
1% |
| Sikkim | 4% + 1% (in case of Sikkimese origin) 9% + 1% (for others) |
|
| Tamil Nadu | 7% | 4% |
| Telangana | 5% | 0.50% |
| Tripura | 5% | |
| Uttar Pradesh | Male - 7% Female - 7%-Rs 10,000 |
1% |
| Uttarakhand | Male - 5% Female - 3.75% |
2% |
| West Bengal | Upto Rs 1 crore - 6% Above Rs 1 crore - 7% |
1% |
Please note: The information provided is for informational purposes as of September 2024. Stamp duty rates can vary.
In addition to stamp duty expenses, property registration charges apply when purchasing a property in India. Similar to stamp duty, property registration charges vary from state to state. Typically, these charges range between 0.5% and 4% across India, depending on the slab determined by each state.
How to calculate stamp duty rates in India?
Stamp duty for residential properties is determined based on the higher of two values: the Ready Reckoner Rate or the value stated in the agreement. For example, if the Ready Reckoner Rate of a unit is Rs 80 lakh and the agreement mentions the property value as Rs 60 lakh, the stamp duty will be calculated based on the higher Ready Reckoner Rate of Rs 80 lakh. This ensures that stamp duty is calculated on the more substantial amount between the two.
Stamp duty rates in India vary across different states and are influenced by the property's location within municipal corporation limits, municipal council areas, or gram panchayats. The calculation of stamp duty on land considers various factors, including whether the land is agricultural or non-agricultural. Some states provide rebates on stamp duty for agricultural land compared to non-agricultural land. These variations ensure that stamp duty rates reflect local circumstances and policies regarding land use and ownership.
What are some factors that help in calculating stamp duty charges in India?
- The stamp duty rate is determined based on whether the property is classified as old or new.
- Location plays a crucial role in defining stamp duty charges, categorized into city areas, rural areas, metropolitan areas, and suburban regions.
- Age and gender are additional factors influencing stamp duty rates, with discounts often available for senior citizens and women in certain states.
- The intended use of the property also influences the final stamp duty rate calculation.
Also Read: Stamp duty and property registration fees in Uttar Pradesh for 2024
What are the documents which require stamp duty?
Stamp duty is applicable to several key documents related to real estate transactions highlighted below:
- Lease deed
- Power of attorney
- Reconveyance deed
- Sale certificate
- Deed of partition
- Gift deed
- Tenancy agreement
- Mortgage deed
- License agreement
- Exchange deed
When to pay stamp duty?
Stamp duty becomes applicable when a property is registered through a sale deed, conveyance deed, or gift deed. This duty can be paid at the time of execution or within a specified period afterward, ensuring flexibility in payment timelines.
What are the penalty charges for late payment of stamp duty?
If the payment of stamp duty is delayed, a penalty of two percent per month is imposed, potentially escalating to 200 percent of the outstanding amount. Stamp papers are registered in the name of either the seller or the buyer involved in the property agreement; failure to do so renders the stamp paper unusable. The validity of stamp duty extends up to six months from the purchase date, contingent upon timely payment.
Why do you pay stamp duty?
Stamp duty serves as legal proof of property ownership. After choosing the property you wish to buy, the next crucial step is to register it in your name in municipal records and settle the applicable stamp duty charges. This precautionary measure helps prevent potential legal disputes in the future, which are common in land transactions in India. Therefore, it is highly recommended to promptly pay the stamp duty upon purchasing land to avoid any complications later on.
How to apply for stamp duty refund?
Each state has its own specific procedure for requesting a stamp duty refund. If a property sale deed is cancelled, buyers can apply for a refund of 98% of the stamp duty paid by submitting a refund application. To process the refund registration, applicants must include the original agreement and the cancellation deed along with their application. For further assistance and detailed instructions, applicants are advised to contact the nearest sub-registrar's office.
Also Read: What is E-Stamp and All You Need to Understand About It
Ans 1. Madhya Pradesh has the maximum stamp duty charges in India, I.e., 9.5%. Home Loans by Banks. Axis Home Loan. ... Home Loans by NBFC. LIC Home Loan. ... Calculator. Home Loan EMI Calculator. ... Home Loan Articles. Top Housing Finance Companies In India. ... Home Loan Resources. Home Loan Interest Rate. ... Schemes and Acts. Pradhan Mantri Awas Yojana.
Ans 2. The payment typically is made by the property's buyer. In the case of an exchange of goods, both the buyer and the seller shall be liable to pay stamp duty equally. The penalty for insufficient payment of the stamp duty will be levied at 2% per month and up to a maximum of 200% on the amount to be paid.
Ans 3. Stamp duties are levied by the Central Government, but within the States are collected and appropriated by the concerned States in terms of provisions of Article 268 of the Constitution. The Indian Stamp Act, 1899, a pre-Constitution Act, has been amended from time to time to enable a more modern Stamp Duty regime.
Ans 4. Although the stamp duty on owner occupied homes is less it is still the second highest out of all the states. Queensland: Queensland has the cheapest stamp duty out of all the states for owner occupied homes.
Ans 5. How are stamp duty and registration charges calculated in India? The cost of stamp duty is generally 5-7% of the property's market value. Registration charges tend to be 1% of the property's market value. As such, these charges can run into lakhs of rupees.