If you are buying a new property, you will have to pay a fee called stamp duty, which is levied by the state government. This fee is used to validate the registration of your property in your name, and legalise your property ownership document. Without paying stamp duty on the property registration document, you will not be considered a legal owner of the property in question.
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. To avoid any shortfall in funds when buying your home and registering the property in your name, ensure that you also requisition for the stamp duty and registration charges when you apply for the home loan amount.
There are several factors that determine the exact amount of stamp duty you will need to pay. These are:
• The market value of the property
• Type of property, along with the number of floors
• The intended usage for the property, whether residential or commercial
• Location of the property
• Age and gender of the property owner
As a rule, stamp duty and registration charges are not included in the home loan amount sanctioned by lenders. This is an out-of-pocket expense to be borne by the buyer.
| City | Stamp Duty Charges | Registration Charges |
|---|---|---|
| Bangalore | 5% of the property’s total market value | 1% of the property’s total market value |
| Delhi | • 4% if the owner is a woman | 1% of the total market value, in addition to a pasting charge of Rs.100 |
| • 6% if the owner is a man | ||
| Mumbai | • 4% of the property’s total market or agreement value for rural areas | 1% of the property’s total market or agreement value, or Rs.30,000, whichever is lower. |
| • 5% for property’s total market or agreement value, for urban areas | ||
| Chennai | 7% of the property’s total market value | 1% of the property’s total market value |
| Kolkata | • 5% of the property’s total market value, if the property is an area governed by a Panchayat | 1% of the property’s total market value |
| • 6% of the property’s total market value if it is an urban area | ||
| • 1% additional stamp duty charge is levied if the property’s total market value is greater than Rs. 40 lakh |
Yes, stamp duty can be claimed as a tax deduction under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1,50,000.
No, stamp duty is not refundable.
So far, stamp duty and GST are separate charges levied on the sale of a property, and as such have no impact on each other.
Stamp Duty and Property Registration Charges in Mumbai
Stamp Duty and Property Registration Charges in Delhi
Stamp Duty and Property Registration Charges in Chennai
Stamp Duty and Property Registration Charges in Bangalore
Stamp Duty and Property Registration Charges in Kolkata
Stamp Duty and Property Registration Charges in Hyderabad
Stamp Duty and Property Registration Charges in Pune
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