Stamp Duty and Registration Charges Calculator
When taking a home loan, there are a host of expenses involved beyond the cost of the house itself. Stamp duty and registration charges are among the extra charges that need to be paid when you register ownership of your new house. Our stamp duty calculator is designed to help you accurately assess the amount of stamp duty you will have to pay towards your property, so that you know exactly how much home loan you need.
What is Stamp Duty?
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.
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. 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:
• Market value of the property
• Type of property, along with the number of floors
• Intended usage for the property, whether residential or commercial
• Location of the property
• Age and gender of the property owner
Are Stamp Duty and Registration Charges Included in Home Loan?
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.
Stamp Duty Charges in Various Cities
| 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 |
Can Stamp Duty Be Claimed as Tax Deduction?
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.
Is Stamp Duty Refundable?
No, stamp duty is not refundable.
Does Stamp Duty Include GST?
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.
How to Pay Stamp Duty?
You can pay stamp duty online, or offline, via one of the following methods:
• Physical Stamp Paper:
This is the most common way of paying stamp duty. Stamp paper can be bought from authorised sellers. The details of the property registration or agreement are then written on this paper. However, if the stamp duty charges are high, then this method becomes inconvenient as you will need to purchase a number of stamp papers.
• Franking:
In this method, you need to go to an authorised franking agent, who will apply a stamp to your property documents, indicating that the stamp duty has been paid. There is usually a minimum amount required in order for this method to be used. In addition, a franking charge is levied by the agent, which is then deducted from the overall stamp duty that you have to pay. Most banks offer franking agent services to home buyers.
• E-stamping:
E-stamping is the most convenient way to pay stamp duty charges, as you can do so online via the SHCIL website (Stock Holding Corporation of India). Simply visit the website, select the state in which your property is located, fill out the application form, and submit it to the collection centre along with the funds required. Once you have paid the amount, you will get an e-stamp certificate with a Unique Identification Number (UIN).
