State-wise stamp duty in India

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A homebuyer must be aware of the stamp duty rates applicable while purchasing either a residential or commercial property. Different state governments levy different stamp duty registration fee. 99acres explains why stamp duty on property is necessary and how to calculate it.

What is Stamp Duty on property?

Introduced in India in the late 19th century, Stamp Duty is a form of tax paid by the homebuyers while purchasing a property. The State government levies stamp duty charge on all types of real estate properties including freehold or leasehold unit, land (agricultural and non-agricultural), independent houses or villa, residential flats or commercial units.

Stamp Duty rates in India

Stamp duty on residential property is calculated on the higher value between the Ready Reckoner rate and the value of property mentioned in the agreement. For instance, the ready reckoner rate of the unit is Rs 80 lakh and the value of the property as per the agreement is Rs 60 lakh, the stamp duty on sale of the property will be calculated on the reckoner rate, which is higher (Rs 80 lakh). stamp1

Stamp duty rates in India vary from state to state. It has been noted that the stamp duty on property differs within the state if the property falls inside the municipal corporation limits, municipal council, and gram panchayat. Stamp duty on land is calculated on the basis of several factors. In some states, rebates are extended on stamp duty on agricultural land as compared to non-agricultural land.

Some factors that help in calculating stamp duty charges in India:

  • The stamp duty rate will be decided on the basis of the status of the property - old or new unit.
  • Another factor defining stamp duty charges is the location of the property. Stamp duty charges are based on the jurisdiction under which property falls, such as city area, rural area, metropolitan area, and suburban.
  • Age and gender is another factor that affects the rates. Rebates and discounts in stamp duty rates are applicable to senior citizens and women, in select states.
  • Usage of property is also taken into consideration while finalising the stamp duty rate.

Current stamp duty rates across States

After understanding the importance of levying real estate stamp duty, it is now mandatory to know how to calculate stamp duty. You will come across several queries online about how to find stamp duty value of property in India. Below is a state-wise list of stamp duty rates and house registration charges that will help you understand the current rates in your respective state.

States

Stamp Duty Rates

Andhra Pradesh

5%

Arunachal Pradesh

6%

Assam

8.25%

Bihar

6%

Chhattisgarh

7.5%

Goa

8%

Gujarat

4.9%

Haryana

5%

Himachal Pradesh

5%

Jammu and Kashmir

5%

Jharkhand

4%

Karnataka

5%

Kerala

8%

Madhya Pradesh

5%

Maharashtra

6%

Manipur

7%

Meghalaya

9.9%

Mizoram

Rs 500 for properties exceeding Rs 5 lakh

Nagaland

8.25%

Odisha

5% (Male)

4% (Female)

Punjab

6%

Rajasthan

5% (Male)

4% (Female)

Sikkim

4% + 1% (in case of Sikkimese origin)
9% + 1% (for others)

Tamil Nadu

7%

Telangana

5%

Tripura

5%

Uttar Pradesh

8%

Uttarakhand

8%

West Bengal

7%

Note: This is for information purposes. Stamp duty rates may vary. Please refer to the Government website.  

Besides stamp duty expenses, property registration charges would be applicable while buying a property in India. Like stamp duty, property registration charges too vary from State to State. Usually, property registration rates fall in between 0.5%-3% across India, depending on the slab decided by the particular state.

Why do you pay stamp duty?

Stamp duty is paid to attain legal evidence of a property ownership. Once you have finalised the property you want to purchase, the next step you undertake is to register the property in your name in the municipal records and pay the stamp duty charges applicable on the property transaction. This will save you from any future legal battles. Legal battles on land purchases are rampant in India. It is thus advisable to pay stamp duty on land purchase without any delay.

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