What Are Stamp Duty and Registration Charges?
When you buy a property in India, you must pay two mandatory government fees: stamp duty (a tax on the transaction) and registration charges (a fee for registering the sale deed in your name). These are separate from the property price and your home loan.
Stamp Duty Rates by State (2025)
- Maharashtra: 5% (women buyers: 4%), plus 1% local body tax in Mumbai
- Delhi: 6% (women: 4%), registration: 1%
- Karnataka: 3% up to ₹20L, 2% up to ₹35L, 3% above ₹45L
- Tamil Nadu: 7%, registration: 4%
- Telangana: 4%, registration: 0.5%
- Gujarat: 4.9%, registration: 1%
- Haryana: 5–7% depending on location
- Rajasthan: 5% (women: 4%)
- UP: 7% (women: 6%)
Registration charges are typically 0.5–1% of the property value across states.
How Is It Calculated?
Stamp duty is calculated on either the circle rate (government's minimum valuation) or the sale price, whichever is higher. If you buy at below the circle rate, stamp duty is still charged on the circle rate.
Example: Property in Delhi, sale price ₹75 lakh, circle rate ₹70 lakh. Stamp duty = 6% × ₹75 lakh = ₹4.5 lakh. Registration = 1% × ₹75 lakh = ₹75,000. Total = ₹5.25 lakh — purely in government fees.
Key Points for Home Loan Buyers
- Banks do NOT include stamp duty in the home loan — you must pay it from your own funds
- Stamp duty must be paid before you register the property, typically at the time of registration
- Some states offer concessions for first-time buyers, women buyers, or affordable housing
- If you're buying under PMAY, check for additional concessions — some states waive or reduce stamp duty for PMAY beneficiaries
Tax Benefit on Stamp Duty
Under Section 80C, you can claim a deduction of up to ₹1.5 lakh for stamp duty and registration charges paid during property purchase — but only in the year of payment.