Stamp Duty On Property Purchase In Top Indian Cities
From time to time, the Reserve Bank of India (RBI) has been nudging banks to factor in additional expenses on property purchase while granting home loans. However, banks typically offer only 80 per cent of the property value as home loan, without factoring in stamp duty and registration charges that increase the overall cost of the property significantly. Buyers have to depend on their own resources to make these payments.
In this article, we discuss in detail what stamp duty is and what are the charges in key cities in India.
What is stamp duty?
Stamp duty is a fee on real estate transactions that has to be paid during the transfer of an asset from one person to another, based on the total declared value of the property. If stamp duty is charged at four per cent in your city, you have to pay Rs 4 for a property worth Rs 100. In India, stamp duty charges may differ from four to 10 per cent, from state to state. Rules in this regard are governed by Section 3 of the Indian Stamp Duty Act, 1899.
What are registration charges?
Registration charges are a one-time fee that you pay for registering the property transaction in the government records. These are kept typically at one per cent of the transaction value, even as stamp duty charges vary from city to city, from an urban area to a rural area and from a male buyer to a woman buyer.
Stamp duty rates in top Indian cities
PropGuide brings a list of rates at which stamp duty is charged for the various types of buyers in the nine major cities of the country.
Stamp duty in Ahmedabad
If you are buying a property in Ahmedabad, you will have to pay a stamp duty at the rate of 4.9 per cent. This rate, in the industrial hub of Gujarat, is one of the lowest among the major cities of India.
Stamp duty in Bengaluru
In India's information technology capital, you need to pay a stamp duty charge of 5.6 per cent in urban areas and 5.65 per cent in rural areas. When compared to its other peers, property in Bengaluru attracts a lower stamp duty rate that most cities.
Stamp duty in Chennai
In the Tamil Nadu capital, for a property in Chennai, you will have to pay seven per cent of the total property value as stamp duty charges.
Stamp duty in Delhi
Stamp duty in national capital Delhi is six per cent. Women buyers, on the other hand, have to pay only four per cent stamp duty.
Stamp duty in Gurgaon
Stamp duty in Gurgaon is different for the different segments and types of buyers. While you have to pay a six per cent stamp duty for property in Gurgaon rural, the charges are kept at eight per cent for transactions in urban areas. For registering a gift deed, you have to pay a stamp duty of three per cent in rural areas and five per cent in urban areas. However, if the sale deed is executed in favour of a woman, the stamp duty charges in Gurgaon are four per cent in rural areas and six per cent in urban areas.
Stamp duty in Hyderabad
You have to pay a stamp duty of 7.5 per cent to buy a property in Hyderabad, the city of Nizams.
Stamp duty in Kolkata
In the West Bengal capital, for a property in the Kolkata panchayat area, you have to pay a stamp duty of five per cent of the value of the property and six per cent in municipal areas and corporation areas. You have to pay an additional one per cent stamp duty in both, urban and rural areas, if the market value of the property exceeds Rs 40 lakhs.
However, giving a boost to the state's real estate sector, at a time when demand has been badly impacted by the second wave of the Coronavirus pandemic, the West Bengal government, in July 2021, announced a two per cent reduction in stamp duty while announcing the Budget for 2021-22.
This means, homebuyers in Kolkata will now pay only four per cent stamp duty for property purchases in urban and municipal areas and three per cent stamp duty in rural areas. If the property is worth over Rs 1 crore, an additional one per cent stamp duty is charged for property registration.
Stamp duty in Mumbai
After the state reduced rates in 2020, stamp duty in Mumbai had gone down to two per cent till December 31, 2020. From January 2021 till March 31, 2021, buyers could pay 3% as stamp duty in Mumbai. However, with the Maharashtra government restoring the old rates starting March 31, 2021, buyers now have to pay five per cent stamp duty on property transactions.
Stamp duty in Pune
Homebuyers had to pay three per cent as stamp duty in Pune till December 31, 2020 and four per cent thereafter, till March 31, 2021.
Stamp duty in Noida
Noida homebuyers have to pay five per as stamp duty. In spite of several requests from industry bodies, the UP government has refused to lower rates, despite a demand slowdown that has been highly aggravated by the second wave of the Coronavirus pandemic.
|Rate (in %)
|3 (rural), 4 (urban), 5 (properties worth over Rs 1 crore)
|2 (till Dec 31, 2020), 3 (from January 1 till March 31, 2021), 5 thereafter
|3 (till Dec 31, 2020), 4 (from January 1 till March 31, 2021), 5 thereafter