Stamp duty and registration charges on property in India: who pays and what decides them

General information, not legal or tax advice. Rates, concessions and rules are set by each state and change often. This page deliberately does not list rates. Always confirm the current figure with the state registration department or your lawyer.

What are stamp duty and registration charges?

Stamp duty is a tax the state government charges when a property changes hands or is leased on a registered document. Registration charges are a separate fee for recording the document at the sub-registrar's office. Together they make the transfer legally recognised, so they are a must-pay cost of buying, over and above the price.

Who pays stamp duty and registration?

In a sale, the buyer normally pays both. This is the usual practice, and it can be agreed differently in the contract. In a rental, the duty on the rent agreement is usually split or paid as the agreement says, so write it down. See rental agreement questions.

Why does stamp duty differ from state to state?

Land and registration are state subjects, so each state sets its own rates and rules. Within a state, the amount can also depend on several things.

• The state and sometimes the city or local body the property is in.
• The value used for duty, which is often the higher of the price you agreed and the government's own guideline or circle value for the area.
• The type of property: residential, commercial, agricultural land or a plot.
• Whether the property is ready or under construction, and whether it is a sale, a gift or a lease.
• Concessions that some states give to certain buyers, such as women, or for affordable homes.
• Other surcharges collected along with the duty, such as local body cess.

How do I find the exact amount for my property?

1. Find the guideline or circle value of the area on the state registration department's website, or ask the sub-registrar's office.
2. Compare it with the price in your agreement. Duty is usually charged on the higher figure.
3. Look up the current duty and registration rates for your state and property type on the same official site.
4. Ask your lawyer or the builder to confirm the total before you sign, and note any concession you qualify for.
5. Keep the duty and registration inside your budget from the start. See how much down payment you need.

Can I avoid or reduce stamp duty?

You can claim concessions the state offers, and you should pay the duty on the correct value. Under-stating the price to pay less duty is illegal and can put your ownership and your loan at risk. Pay the right amount and keep the receipts. They are part of your proof of title. See how to check a property has a clear title.

Comparing the total cost of different homes? Browse apartments for sale, houses for sale and plots, then use the rent vs buy calculator to see the full picture.