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Stamp Duty On Property Purchase In Top Indian Cities - Posted on: 28-06-2021

When you set out to buy a property, you have to budget additional expenses that you would have to incur during the process that include stamp duty and registration charges.

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.

The rates:

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 BengaluruIn 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 HyderabadYou 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 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 valueof the property exceeds Rs 40 lakh.

Stamp duty in Mumbai: After the state recently slapped a one per cent surcharge on property transactions, stamp duty in Mumbai has gone up to six per cent.

Stamp duty in Pune: Homebuyers have to pay five per cent as stamp duty in Pune.

Stamp duty in NoidaNoida homebuyers have to pay five per as stamp duty.

City Rate (in %)
Ahmedabad 4.90
Bengaluru 5
Chennai 7
Delhi 6
Gurgaon 6-8
Hyderabad 7.5
Kolkata  5-7
Mumbai 6
Noida 5
Pune 5