Stamp duty is one of the vital ingredients of any property transaction prevalent in India. It is a state tax on write-offs and property dealings in the state legal systems. However, you have to know something known as the stamp duty value of a property. Most importantly, it will help home buyers. It will also help those planning to invest in real estate and anyone in the real estate field.
This blog will focus on and explain the details of stamp duty and its computations. We will also compare the costs of registering properties by state.
What is the Stamp Duty Value (SDV) of a Property?
The stamp duty value of property is a tax on written and legal documents and property. It is a fee that everyone must pay to their respective state. It varies from one state to another. This is required for a document to be lawful before buying or selling the property. The stamp duty is usually a proportion of the property’s worth or consideration, determining the taxes payable to the government. It is used to calculate the TDS (Tax Deducted at Source) on the property transaction.
Who has to pay Stamp Duty and Registration Charge?
As a rule, the purchase price is adjusted this way. Usually, the buyer pays stamp duty and registration charges. But, in some transactions, like property exchanges, the stamp duty and registration charges might be split. The separation is done along the lines of the buyer and the seller.
State-wise Difference in Property Registration Charges
The stamp duty rates and registration charges can vary significantly across different states in India. This is because state governments levy the stamp duty. They set the rates based on factors like the property’s location, type, and value.
Here’s a table outlining the stamp duty rates in some of the major cities in India:
| State | Stamp Duty Rate | Registration Charges |
| Maharashtra | 6% of the property value (5% for women) | 1% of the property value |
| Gujarat | 4% of the property value | 1% of the property value |
| Karnataka | 5% of the property value | 1% of the property value |
| Tamil Nadu | 7% of the property value | 1% of the property value |
| Telangana | 6% of the property value | 1% of the property value |
| Delhi | 6% of the property value | 1% of the property value |
| Uttar Pradesh | 5% of the property value | 1% of the property value |
| West Bengal | 6% of the property value | 1% of the property value |
How to Calculate Stamp Duty Value of Property?
The stamp duty is calculated based on the property’s market value or the transaction amount, whichever is higher. While calculating, you can use the stamp duty formula or the online stamp duty cost calculator.
Stamp Duty Calculation Formula:
Stamp Duty = Property Value x Stamp Duty Rate (%)
Consider an example of Karnataka Stamp Duty in Bengaluru.
Mr. Kalshetty buys a residential apartment in Bengaluru valued at ₹80 lakhs.
- Stamp Duty Rate: 5% (for properties over ₹45 lakh according to BBMP)
- Registration Charges: 1% of property value
Calculation:
- Stamp Duty = ₹80,00,000 × 5% = ₹4,00,000
- Registration Charges = ₹80,00,000 × 1% = ₹80,000
Total Payable = ₹4,00,000 + ₹80,000 = ₹4,80,000
Additional cess or surcharges may apply depending on location and property type.
Note: Karnataka offers a 0.5% stamp duty concession for female property buyers when the property is registered solely or jointly in a woman’s name. This concession applies mainly to residential properties and helps promote female ownership. However, there are no specific stamp duty rebates statewide for first-time homebuyers at present. Registration charges remain uniform at 1% regardless of gender or buyer status.
Factors Considered for Stamp Duty Calculation
Several factors are taken into consideration when calculating the stamp duty for a property transaction. These include:
| Factor | Description |
| Property Location | It covers the area within the Municipal limits, Municipal council/panchayat region, and Gram panchayat region, and stamp duty charges vary depending on the location of the property. |
| Property Type | The type of property used, for instance, residential, commercial, or industrial is also important in determining the stamp duty rate. |
| Property Value | The overall stamp duty charge is based on the market value of the property. |
| Gender of the Buyer | It shall also be important to note that stamp duty can vary with the gender of the buyer across states with the female buyer paying a lesser amount than the male buyer. |
| Purpose of the Transaction | It can also rely on the nature of the transaction where the stamp duty is paid, this may include a sale, lease, or mortgage among others. |
| Circle rates, guidance values, or ready reckoner rates | These are the minimum price values specified by state governments for land or properties in specific areas. These rates determine stamp duty and registration fees for all property transactions. Circle rate varies from one locality to another in India based on location, size and type of property, market trends, and infrastructure development. |
Stamp duty rates in top cities in 2024:
| City | Stamp Duty Rate |
| Mumbai | 6% of the property value |
| Pune | 5% of the property value |
| Hyderabad | 6% of the property value |
| Chennai | 7% of the property value |
| Bangalore | 5% of the property value |
| Delhi | 6% of the property value |
| Ahmedabad | 4% of the property value |
| Kolkata | 6% of the property value |
Documentation Required for Payment of Stamp Duty
To pay the stamp duty, you will typically need to provide the following documents:
- Property sale deed or agreement
- Ownership documents (such as title deeds or property cards)
- Identification documents (such as an Aadhaar card, PAN card, or passport)
- Proof of address
- Photographs (as required)
How is Stamp Duty Paid?
It can be done through various methods, including:
Non-Judicial Stamp Paper Method
In this way, you pay the stamp duty by buying non-judicial stamp papers. You buy them from authorized vendors or government offices. The stamp papers are then affixed to the legal documents.
Franking Method
In the franking method, the sender pays stamp duty to the government. The documents are then “franked” or stamped to show the payment.
E-Stamping
E-stamping is a digital way to pay stamp duty. The payment is made online. An electronic stamp is generated and put on the documents. This method is becoming widely popular through its convenience and security.
Stamp Duty Value vs. Market Value: Key Differences
| Feature | Stamp Duty Value | Market Value |
| Definition | Value assessed by government for tax calculations and property registration | Price agreed between buyer and seller in open market |
| Purpose | Basis for calculating stamp duty and registration charges | Reflects actual property worth and sale price |
| Determined By | Stamp Valuation Authority using guideline rates and government norms | Market forces, demand-supply, property condition |
| Legal Impact | Used for legal registration and taxation compliance | Used for negotiations, investment decisions |
| Flexibility | Generally fixed until government revision | Highly variable based on real-time market trends |
| Impact on Stamp Duty | Stamp duty levied on the higher of stamp duty or transaction value | May affect final stamp duty if higher than stamp duty value |
| Frequency of Updates | Periodically updated by government | Changes frequently based on market conditions |
Key Takeaways & Conclusion
Stamp duty is important for property transactions in India you can pay it through online. Understanding its math is essential. This is true for home buyers, real estate investors, and professionals. They must also understand the state-specific variations. Learn the stamp duty rules. Then, use the right payment methods. This will make property transactions smooth and legal.
FAQs: All About Stamp Duty Value of Property
Stamp duty value means the value determined by the government for property transactions and is used to calculate both stamp duty and TDS obligations during a sale.
Stamp Duty Calculation Formula:
Stamp Duty = Property Value x Stamp Duty Rate (%)
In Mumbai, the stamp duty value in 2025 is the greater of the market value or government ready reckoner rate; stamp duty is 6% for men, 5% for women, and 6.5% for joint ownership (with 1% metro cess included).
The stamp duty value for property while paying TDS is the higher of the property’s sale price or the government-assessed value (circle rate), and TDS at 1% must be deducted from this amount by the buyer under Section 194IA of the Income Tax Act.
If the sale value is higher than the stamp duty value, the duty is based on the sale value. The buyer must pay the higher amount.
Apoorva H P Achar