A property’s price is made up of various components. To name a few, there are brokerage charges, taxes, GST, and Stamp Duty. Yes, the price the broker quotes is not the final price. He’s smart enough to not include his brokerage charge in it either.
India has witnessed record-breaking home sales of 1,30,170 units in Q4FY24. In fact, total sales in FY24 reached 492,900 units, a 30% increase from the previous year according to data from Anarock.
This statistic implies one thing, the demand for homes isn’t going down anytime soon. Since you’re reading this article, I can guarantee you are looking to purchase a home for yourself as well.
Stamp Duty and Registration Charges In Top 10 Cities In India
In this section we cover the Stamp Duty & Registration Charges in your city:
Mumbai
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 5% | 1% |
| Male | 6% | 1% |
| Joint (Male & Female) | 6% | 1% |
| Joint (Male & Male) | 6% | 1% |
| Joint (Female & Female) | 5% | 1% |
Do note that the registration charges are 1% for a property under ₹30,00,000. For properties above ₹30,00,000 the registration cost is fixed at ₹30,000.
Delhi
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 4% | 1% |
| Male | 6% | 1% |
| Joint (Male & Female) | 5% | 1% |
Apart from this, along with the 1% registration, there will also be a ₹100 pasting charge.
Kolkata
| Location of the Property | Property Below ₹25 Lakhs | Property Above ₹40 Lakhs |
|---|---|---|
| Corporation area (Howrah and Kolkata) | 6% | 7% |
| Notified area or Municipality Corporation or Municipal | 6% | 7% |
| Areas excluded from the above-mentioned categories | 5% | 6% |
There are two important things to note here:
- Firstly, registration charges will be 1% irrespective of the property value and locality.
- Secondly, Kolkata doesn’t give any type of concession on stamp duty to women. These are same for both genders.
Bangalore
| Property Value | Stamp Duty | Registration Charge |
|---|---|---|
| Below ₹20 Lakhs | 2% | 1% |
| Between ₹21 – 45 Lakhs | 3% | 1% |
| Above ₹45 Lakhs | 5% | 1% |
A few important things to note here are as follows:
- There is no concession on the basis of gender, both males and females will pay the same stamp duty fee.
- The registration fee remains 1% irrespective of property type or area as well.
- For properties above ₹35 Lakhs in value, a surcharge of 10% plus 2% cess is applicable. Thus making the effective duty 5.6%.
- In Rural areas cess is 3%, making the effective duty 5.65%.
Pune
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 6% | 1% |
| Male | 7% | 1% |
| Joint (Male & Female) | 6.50% | 1% |
Do note that the registration charges are 1% for a property under ₹30,00,000. For properties above ₹30,00,000 the registration cost is fixed at ₹30,000. This calculation is similar to Mumbai’s registration charges.
Chennai
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 7% | 4% |
| Male | 7% | 4% |
| Joint (Male & Female) | 7% | 4% |
Chennai has one of the highest stamp duty charges in India. Both genders get the same charges with no concessions. Note the high registration charge as another important factor. Most states have a registration charge of just 1% for comparison.
Hyderabad
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 4% | 0.5% |
| Male | 4% | 0.5% |
| Joint (Male & Female) | 4% | 0.5% |
Hyderabad has one of the lowest stamp duty and registration fees in the country. But there’s a small caveat to be noted here:
In the case of apartments and flats, there is a transfer fee of 1.5% .
Make sure to include this in your calculation to not be short of money for your dream home.
Ahmedabad
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 4.9% | NIL |
| Male | 4.9% | 1% |
| Joint (Male & Female) | 4.9% | 1% |
| Joint (Female & Female) | 4.9% | NIL |
In Ahmedabad, the stamp duty includes a surcharge. Let me elaborate so that you can understand this better.
- The base stamp duty is actually just 3.5%. On adding the surcharge of 40% on this 3.5% which is equal to 1.4% it becomes 4.9%.
- Ahmedabad has no registration charges for women. This aids women in becoming more financially independent.
Jaipur
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 7% | 1% |
| Male | 8.2% | 1% |
Jaipur has a concession for women when it comes to stamp duty charges. Let’s understand the exact breakdown.
- Jaipur charges something called a Labour Cess on the stamp duty.
- The base duty for Males is 6% and for females is 5%.
- There is a 20% Labour Cess on this value which is 1.2% and 1% for men and women respectively.
- Hence, the final duty values for men and women are 8.2% and 7% respectively.
- Registration charges remain the same for both.
Surat
| Owner of the Property | Stamp Duty | Registration Charge |
|---|---|---|
| Female | 4.9% | NIL |
| Male | 4.9% | 1% |
| Joint (Male & Female) | 4.9% | 1% |
| Joint (Female & Female) | 4.9% | NIL |
Ahmedabad and Surat are both in Gujarat and follow the same rules.
- The base stamp duty is 3.5%.On adding the surcharge of 40% on this 3.5% which is equal to 1.4% it becomes 4.9%.
- Surat too has no registration charges for women.
What is Stamp Duty?
A stamp duty is a form of tax that is imposed on the sale of immovable property by the State Government. Since it’s levied by the State Government, the Stamp Duty rates differ across the states. Not just by state, it also varies by city.
So why is it important? It is a fee that validates the purchase of the property and legalizes your property ownership document. Therefore, without paying a stamp duty on your property registration, you will not be considered a legal owner of the property.
Registration charges are simple and straightforward. It is way lower compared to stamp duty, and as the name suggests, it’s the cost you incur to register your property.
Ideally, the purpose of registration is to record the execution of the stamp duty. In other words, you’re settling it in stone.
How is stamp duty Calculated?
Stamp Duty is calculated as a percentage of the property value or ready reckoner rate. A ready reckoner rate is basically the rate set by the state government as the minimum valuation of properties in a particular area.
Some other factors influencing the calculation of stamp duty are the market value of the property, the number of floors, whether residential or commercial and the gender of the property owner.
The Stamp Duty cost is generally between 5-7% in most states, while registration charges are around 1%. Most states offer women a concession in these duties and registration charges as well.
Now enough of the basic summary that every article will tell you. Let’s dive deeper into understanding the stamp duty and registration charges of the Top 10 Cities in India based on real estate values.
Conclusion (Is stamp duty required)
That summarizes these charges are present across the Top 10 cities in India and yes, it is required. If you’re on the hunt for your next property/home purchase, make sure to understand the different charges that come along with the purchase.
Buyers aren’t aware of these charges . This leads to a sudden increase in money needed for property purchases.
Hope this article has helped to make the right call. In case of any queries, feel free to reach out to Credit Dharma. Do visit our blogs often for all your home purchase-related needs 🙂
FAQs
It is a tax imposed by the State Government on the sale of immovable property. It validates the purchase and legalizes the property ownership document.
Yes, they vary by state and city.
Yes, paying stamp duty and registration charges is mandatory to be recognized as the legal owner of the property.
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