Stamp Duty is a tax imposed by the government on the transfer of property. This tax is payable under Section 3 of the Indian Stamp Act 1899 by the buyer of a property. Stamp duty contributes to providing legality to the documents that formally record a property transaction. Stamp Duty is one of the most important additional charges a buyer pays while buying, a property, and plays multiple roles. It acts as a source of revenue for governments, plays a regulatory role in the real estate market, and formally records the transaction.
The stamp duty charges depend primarily on two factors. First, it is based on the price of the property. Secondly, they are determined by state governments. Therefore, the charge might differ from one state to another. Square Yards offers an easy-to-use stamp duty calculator that helps ascertain the stamp duty charge on your property within a few minutes.
What is a Stamp Duty Calculator?
A stamp duty calculator is a digital tool that aims to simplify stamp duty calculations. Our user-friendly calculator offers instant stamp duty estimations within minutes. Factors like your state and gender impact the overall stamp duty rate. Our online stamp duty calculator considers all these factors while calculating the final payable amount.
How are Stamp Duty and Registration Charges Calculated?
Stamp Duty and Registration Charges are two different charges payable on purchasing a property. Both are calculated at different rates. However, both play the crucial role of legally ensuring the transaction of a property. Both these charges are set by state governments. While stamp duty generally ranges between 5-7% of the property value, while registration charge is much lower, generally ranging between 1-2%.
These charges are calculated on the basis of the following factors:
Market Value or Agreement Value, whichever is higher
Type of Property (single-storey, multi-storey, duplex)
Usage of the Property (residential, commercial, agricultural)
Location
Other bases include gender, applicable charges, etc.
How to Pay Stamp Duty?
Stamp Duty payment must be made before, during or one working day after the execution of the legal document. This payment is generally made by the buyer and must be made in full. However, in case of an exchange of goods, both parties (the buyer and the seller) are liable to pay the stamp duty charges. The stamp duty document is legal and binding. A failure to make the payment in a timely manner can invite a penalty starting at 2% a month and going up to 200% of the total payable amount.
Buyers can use our stamp duty online calculator before finalising their deal in order to gain an advance estimate of the upcoming stamp duty charges.
Documents Required While Paying Stamp Duty and Registration Charges
While document requirements may vary, the following documents are generally prescribed while paying stamp duty and registration charges:
Property Title Deed
Sale Deed/Conveyance Deed
Khata Certificate
No Objection Certificates (NOCs)
Identification Proofs
Address Proofs
Power of Attorney
Encumbrance Certificate
BBMP extract certificate
Tax-Payment Receipts for the last 3 months
RTC (Records of Rights and Tenancy Corps) or 7/12 extract
Other specified documents
Tax Benefits on Stamp Duty and Registration Charges
Payment of stamp duty and registration charges offers tax deductions under Section 80C of the Income Tax Act. This section also includes other expenses, and the total exemption for all charges is capped at Rs. 1.5 lakhs. Any claim or exemption on stamp duty and registration payment must fall within this maximum limit.
Further, the claim must be made in the same financial year as the charges are paid. Individuals, joint owners, or HUFs can claim this deduction in their income tax returns. Tax exemptions on these charges are available for residential and commercial properties.
It is also important to note that if the property for which the deduction has been claimed is sold within five years from that year, the benefits claimed will be reversed. It is,thus, advised that buyers keep the receipts of payments and other documents handy while applying for the tax exemption.
Stamp Duty Charges Across Various Metropolitans
Take a look at the current stamp duty and registration charges across Indian metropolitans.
| City |
Stamp Duty Charge |
Registration Charge |
| Mumbai |
5%-6% |
1% |
| Delhi |
4%-6% |
1% |
| Kolkata |
6%-7% |
1% |
| Chennai |
7% |
4% |
| Bengaluru |
2%-5% |
1% |
| Hyderabad |
5% |
0.50% |
| Ahmedabad |
4.90% |
1% (No charges for females) |
| Pune |
5%-6% |
1% |
How to Use The Square Yards Stamp Duty Calculator?
Anyone can use our free home stamp duty calculator. Follow these simple steps and get instant results:
Step 1: Visit www[dot]squareyards[dot]com/stamp-duty-calculator
Step 2: Enter details like your state, gender and property value.
Step 3: Click on calculate stamp duty.
Step 4: The calculator will show you the payable amount along with the applicate rate of stamp duty on your property.
