Buying a property? Check stamp duty rates in key metro cities

Understanding stamp duty and registration charges is crucial for prospective homebuyers as these costs can add significantly to the overall price of property transactions

The stamp duty and registration charges can significantly impact the overall cost of your home. These charges vary across different states and cities. And for long experts have been demanding uniformity in these rates.

 

Soumya Banerjee, Partner at law firm AQUILAW, says, “We can see that various states/cities have different stamp duty rates for sale/conveyance deed ranging from 4 per cent to 7 per cent and it would be a welcome move if steps are taken towards rationalisation and standardisation of the stamp duty rates across the states so that there is more certainty regarding the same in the minds of property buyers. However, land being a state subject and there being substantial difference in the circle rates across such cities/states, the same may prove to be a difficult task to achieve.”

 

What is stamp duty?

 

Stamp duty is a form of taxation/duty imposed by state governments on the execution of property-related documents, primarily at the time of purchase/sale/conveyance of immovable property.

 

It is calculated as a percentage of the property’s value, which is determined through assessment by the relevant authorities or through the actual transaction price, whichever is higher. 

 

Several factors may influence the exact stamp duty payable, including but not limited to the location of the property (whether urban or rural), the gender of the buyer (with certain states offering reduced rates for women purchasers), and whether the property is being acquired jointly or individually. Additionally, stamp duty rates may be subject to periodic revisions/amendments by the legislative bodies of each state.

 

Meghna Mishra, Senior Partner, Karanjawala & Co. explains the applicable rates of stamp duty for the transfer/purchase/acquisition of real property/immovable assets in the seven cities (Mumbai, Delhi, Bengaluru, Kolkata, Pune, Chennai and Hyderabad) which is decided by the relevant state authorities and may vary based on the jurisdiction, type of buyer, and other relevant factors. 

 

Mumbai: The applicable stamp duty for transactions involving real property/immovable assets is currently levied at a rate of six per cent (6 per cent) of the property’s market value/transaction value. Therefore, the amount of stamp duty to be paid on 1 crore at 6 per cent will be ~6,00,000. 

 

Delhi (National Capital Territory): The rate of stamp duty for the transfer/purchase of property/real estate in Delhi is established at six per cent (6 per cent) of the value of the immovable property, to be assessed in accordance with local valuation regulations. Therefore, the amount of stamp duty to be paid on 1 crore at 6 per cent will be ~6,00,000.

 

Bengaluru (Karnataka): The stamp duty payable on property transactions in Bengaluru is fixed at five per cent (5 per cent) of the property value, based on the applicable laws and regulations. Therefore, the amount of stamp duty to be paid on 1 crore at 5 per cent will be ~5,00,000.

 

Kolkata (West Bengal): Transactions involving the sale or transfer of immovable property within the Kolkata metropolitan area are subject to a stamp duty rate of six per cent (6 per cent), assessed on the fair market value of the said property. Therefore, the amount of stamp duty to be paid on 1 crore at 6 per cent will be ~6,00,000.

 

Pune (Maharashtra): For property acquisitions in Pune, the stamp duty is six percent (6 per cent) of the market value of the property. This includes additional levies/surcharges such as the local body tax (LBT) and transport-related surcharge, which are imposed under the relevant municipal laws. Therefore, the amount of stamp duty to be paid on 1 crore at 6 per cent will be ~6,00,000.

 

Chennai (Tamil Nadu): The stamp duty applicable to property transfers within Chennai’s jurisdiction is seven per cent (7 per cent) of the property’s sale/market value. This duty is imposed in accordance with the statutory regulations of the State of Tamil Nadu. Therefore, the amount of stamp duty to be paid on 1 crore at 7 per cent will be ~7,00,000.

 

Hyderabad (Telangana): Real property transactions in Hyderabad are subject to a stamp duty rate of six per cent (6 per cent), which is to be calculated on the basis of the property’s market value as determined under the applicable laws in Telangana. Therefore, the amount of stamp duty to be paid on 1 crore at 6 per cent will be ~6,00,000.