Stamp Duty

Last Updated 16th Jul 2020

Stamp Duty and Registration Charges

City Stamp Duty Charges Land Registration Charges
Delhi 4%-6% 1% plus Rs. 100 pasting fee
Noida 7% Rs. 10,000 plus tax
Mumbai 6% 1% of value of property or Rs. 30,000
Gurgaon 5%-7% Upto Rs. 15,000
Pune 5% 1% or Rs. 30,000, whichever is lower

What is Stamp Duty?

Stamp duty is the fees levied by the state government to validate the registration of 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 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 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. 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 gets depreciated, 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 rural areas may not be charged as 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 registration charges. 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.

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 of a house. You have to pay 5%-8% of the value of the property as stamp duty and registration charges. 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 Rs. 1,50,000 on stamp duty and registration under Section 80C of the Income Tax Act.

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:

  • Physical stamp paper: Paying stamp duty by way of physical stamp paper is the most common mode. For this, you need to purchase 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.
  • Franking: 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 stamp online is convenient, and you need to fill the details such as the state in which your property is located and fill out 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
Delhi 4%-6%
Mumbai 6%
Banglore 5%
Chennai 7%
Kolkata 6%-7%
Pune 5%
Gurgaon 5%-7%
Noida 7%
Faridabad 5%-7%
Jaipur 4%-5%

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 gift deed registration 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.

Check Circle Rates for Different Cities

FAQs

How much is the stamp duty?

You have to pay 5%-7% of the value of the property as the stamp duty.

What are the stamp duty and registration charges?

To get the ownership of the property, you need to pay the legal fees, which is a mutual agreement between two parties. This statutory fee is levied by the government for registration of property and known as stamp duty and registration charges. You can pay stamp duty on property online as well.

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 2020?

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.


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