Stamp duty and registration charges are a significant part of the cost of a property transaction in India. Understanding how they are assessed helps buyers budget accurately.
What stamp duty is
Stamp duty is a charge on certain documents, including property transfer deeds. It is generally calculated as a percentage of the transaction value or the value assessed by the authorities, whichever basis applies.
Why rates vary
Stamp duty is levied at the state level, so the rate and the basis of calculation differ from state to state. Some states also apply different rates depending on factors recognised under their rules.
Registration charges
- A registration fee is usually payable in addition to stamp duty
- Charges are generally linked to the transaction or assessed value
- Both are typically paid around the time of registration
- Rates and concessions depend on the applicable state rules
Planning for the cost
Because these charges can be substantial, factoring them in early helps avoid surprises at the registration stage. Confirming the current rate for the relevant state is a sensible first step.
This guide is general information and not legal advice. Rates and rules vary by state and change over time.
This guide provides general information about the law in India and is not legal advice. For advice on your specific situation, please consult a qualified advocate.