Real Estate

Stamp Duty

State-level tax on property registration, typically 5-8% of property value (Tamil Nadu highest at 11%). Paid in cash; not financed by the home loan.

Definition

Stamp duty is a tax levied by state governments on property transactions. It is calculated as a percentage of the higher of agreement value or circle rate (state's notified minimum). Rates vary 5-11% across Indian states. Registration charges add another ~1%.

Stamp duty cannot be financed by a home loan — it must come from your own cash. For a ₹1 crore property in Maharashtra (~6-7% total), you need ₹6-7 lakh in cash on top of the down payment. Many states (Delhi, Haryana, Punjab, Rajasthan) offer 1-2% discount for female/joint registration.

Stamp duty paid on a self-occupied home qualifies under Section 80C (within the ₹1.5L limit) in the year of payment.

Example

Maharashtra: 5% stamp duty + 1% registration on ₹1 crore = ₹6 lakh. Tamil Nadu: 7% + 4% = ₹11 lakh on the same property.

Calculators that use this

Related terms

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