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Stamp Duty

Stamp Duty and Registration Charges

Last Updated 28th Jul 2021

  • Stamp duty is a legal tax which is levied on any sale or purchase of a property to legalise the ownership of a property.
  • You can claim tax deductions up to ₹ 1,50,000 on stamp duty and registration under Section 80C of the Income Tax Act.
  • You can pay the stamp duty on property through online and offline methods.
City Stamp Duty Charges Land Registration Charges
Delhi 4%-6% 1% plus ₹ 100 pasting fee
Noida 7% ₹ 10,000 plus tax
Mumbai 2% 1% of value of property or ₹ 30,000
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What is Stamp Duty?

Stamp duty is the fees levied by the State Government to validate the registration of a new property. It is necessary to pay the stamp duty to legalise the property registration document in your name for claiming the ownership of property. The amount of stamp duty is a fixed amount dependent on the agreed value between two or more parties. The stamp duty rates on property can be paid through online and offline modes.

Stamp Duty Calculator

A stamp duty calculator is a tool to calculate the precise stamp duty that you need to pay towards the house in any city or state. You can easily calculate the home loan stamp duty online by entering the property details such as the value of the property and the respective state in which your house is located.

How are Stamp Duty and Registration Charges Calculated in India?

The stamp duty and registration charges are necessary charges that you need to assess as the figures of these charges may go in Lakhs. Usually, you have to pay 5%-8% of the value of the property as stamp duty and registration fees.Precisely, for stamp duty charges, you need to pay 5%-7% of the value of the property and 1% of the value of the property are paid as flat registration charges. The rent agreement of stamp duty registration is submitted to the Registrar.

The stamp duty registration is dependent on the following factors:

  • Value of the property: The stamp duty and registration charges on any property depend on the total value of that property in the market. Higher the value of property, higher will be stamp duty and vice-versa.
  • Age of the property: The age of the property is a crucial factor in determining stamp duty charges. As the value of old buildings depreciates, lesser stamp duty charges will be levied on the property, and similarly, the new property will attract higher stamp duty.
  • City/ location of the property: If the property is located in a posh urban area it will certainly attract higher stamp duty while a property in a rural area may not be charged high stamp duty charges.
  • Gender and age of the property owner: The gender and age of the property owner also count as an essential factor while calculating stamp duty and registration fees. A senior citizen may have to pay lesser stamp duty on a property, and similarly, women get concessions on stamp duty charges.
  • Usage of Property: A commercial property has more amenities and space as compared to a residential property. Thus, you have to pay higher stamp duty and registration charges for a commercial building.

How to pay stamp duty?

The stamp duty on a property can be paid using two modes: Offline mode and Online mode.

Offline mode of paying stamp duty: You can pay stamp duty through offline mode by using any of the following methods:

  • Using Physical Stamp Paper: Paying stamp duty by way of physical stamp paper is the most common mode. For this, you need to purchase a stamp paper from authorised sellers. The details of land registration charges are mentioned in the paper. Physical stamps can, however, be inconvenient if stamp duty charges of the property are high.
  • Via Franking Agent: To pay stamp duty using this method, you need to visit a franking agent who will apply a stamp to your property papers. This stamp indicates that you have paid the stamp duty. However, these agents charge a specific fee for their franking services which is deducted from overall stamp duty and registration charges of the property.

Online mode of paying stamp duty: You can also pay stamp duty online through the official website of Stockholding Corporation of India. The process to pay stamps online is convenient, and you need to fill in the application form. The form is then submitted to the collection centre along with the funds required. After making the payments, an e-stamp certificate with a Unique Identification Number (UIN) is issued to you.

Stamp Duty Charges in Various Cities

City Stamp Duty Charges Land Registration Charges
Delhi 4%-6% 1% plus ₹ 100 pasting fee
Mumbai 2% 1% of value of property or ₹ 30,000
Bangalore 3% - 5% 1% of property value
Chennai 7% 1% of the property value
Kolkata 6%-7% 1.1% of the property value
Pune 3% 1% or ₹ 30,000, whichever is lower
Gurgaon 5%-7% Upto ₹ 15,000
Noida 7% ₹ 10,000 plus tax
Faridabad 5%-7% Upto ₹ 15,000
Jaipur 4%-5% 1% of transaction value

The stamp duty charges in most of the cities vary according to the gender and location of the property. For instance, the stamp duty charges are lesser for females and the property of rural areas.

Documents Required for Payment of Stamp Duty and Registration Charges

The property registration and stamp duty payment requires the following key documents:

  • Identity proof like PAN Card, Passport, Driving License, etc. of both the seller as well as the purchaser.
  • The original deed document of the seller.
  • The payment proof of the Stamp Duty.
  • Payment details of the transaction.
  • The Khata certificate.
  • Tax Receipt of previous three months.

Documents Registration After Paying Stamp Duty

As per the Indian Registration Act, after the payment of stamp duty, the stamp duty document has to be registered with a sub-registrar. Registrar should be in the jurisdiction where the property is located. It is done to record the execution of the document. After the stamp duty registration the document becomes legal and rights are transferred to the owner. For the document registration a fee has to be paid which is called registration fees which vary from city to city and state to state.

Check Circle Rates for Different Cities

Are Stamp Duty and Registration Charges included when taking a Home Loan?

Stamp duty and registration charges form a substantial expense along with the purchase cost of a house. You have to pay 5%-8% of the value of the property as stamp duty and registration fees. However, when you get your home finance using a home loan, the property registration fees are not part of a house loan. You pay these charges before availing a home loan. However, you can claim tax deductions up to ₹ 1,50,000 on stamp duty and registration under Section 80C of the Income Tax Act.

What are the Stamp duty Charges for women buyers?

Stamp duty for women buyers are generally less in all the states. The stamp duty rates are:-

State Stamp Duty Charges
Delhi 4%
Mumbai 4%
Bangalore 5% on properties above ₹ 45 Lakh 3% on properties between ₹ 21 Lakh - ₹ 45 Lakh 2% on properties less than ₹ 20 Lakh
Chennai 7%
Kolkata 6%
Pune 3%
Gurgaon 5%
Noida 7% minus ₹ 10,000
Faridabad 5%
Jaipur 5%

What Will Happen, If You Pay Incomplete Stamp Duty?

Stamp duty on home loan should be paid in full and on time while purchasing or selling a property. The payment has to be done within a day or prior to the day when legal documents are prepared. If it is not done a penalty of 2% per month will be charged or up to 200% on the remaining amount has to be paid. Always use a stamp duty calculator to determine how much amount you need to pay as stamp duty charges so that you do not end up paying a penalty.

NAREDCO Maharastra announces zero stamp duty until December 31

National Real Estate Development Council (NAREDCO), Maharastra on Monday extended the zero stamp duty for home buyers until December 31. The scheme would encourage the buyers to buy residential properties at affordable rates in the pandemic. Earlier, In September, the NAREDCO Maharashtra announced that it would bear the stamp duty charges until October after the state Government cut the rate by 2-3% in major cities in August. NAREDCO absorbed the same till Diwali to push the demand cycle, which has frozen in the lockdown period.

Latest News about stamp duty charges

  • Stamp Duty reduced for residential properties
    In Budget 2021-22, the Maharashtra government has cut down stamp duty charges on properties by 1% for women borrowers. To avail of the concessional rates, the property must be registered in her name.

FAQs

How much is the stamp duty?

You have to pay 5%-7% of the value of the property as the stamp duty.The stamp duty charges vary across all cities and across owner types. For instance the stamp duty charges are less for women and senior citizens.

What are the stamp duty and registration charges?

Stamp duty is a charge paid to authorize the transfer of ownership of a property. Stamp duty charges are usually 5%-7% of the value of the property and 1% of the value of the property is paid as flat registration charge.The fee is charged by the Central or the State Government and can be paid online as well as offline.

How is the stamp duty calculated?

Stamp duty is calculated on the value of a property based on the following factors:

  • Location of property.
  • Usage of property.
  • Number of floors in a property.
  • Gender of the owner of the property.

Why do we pay stamp duty?

It is crucial to pay stamp duty on property to get legal ownership of the property. This gift deed registration transfers the rights of ownership of the property in case of paying stamp duty on resale flat.

Will stamp duty be reduced in 2021 ?

Yes, there have been cuts in stamp duty in various states like Maharashtra, Nagpur, Karnataka. You can check stamp duty online using the stamp duty calculator.

Can stamp duty be avoided?

No, without paying the property registration fee, you cannot claim the legal ownership of the property.

Who collects stamp duty in India?

Under the Stamp Act, the Government of India levies stamp duty on the sale and purchase of a property. The stamp rates are decided by the Central as well as State government.

How is stamp duty calculated on a flat?

Stamp duty is calculated on circle rate/ ready reckoner rate or property value whichever is higher. Consideration value is a total amount which is paid for the property. Stamp duty for property will be calculated as in this example- the price of the flat is ₹ 50 Lakh in Delhi, then stamp duty will be 4% of ₹ 50 Lakh which is ₹ 20,000.

Is stamp duty covered in home loan?

No, banks do not cover stamp duty under home loan. Stamp duty and registration fees has to be incurred over and above the home loan amount by a borrower.

What is stamp duty on a home loan?

Stamp duty is not charged on home loan rather it is a tax which is levied for any kind of monetary transaction which takes place to finish your home purchase. It is charged under Indian Stamp Act in 1899. However, if a buyer has availed a home loan then stamp duty rates are not covered under home loan amount.


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