Stamp Duty
Tax & DeductionsStamp duty is a state government tax on property transactions and legal documents. Paid at time of property registration. Rates vary by state: 5-7% in most states, 6% in Maharashtra (3% for women buyers), 4% in Delhi. It is not recoverable and forms part of your cost of acquisition.
In detail
Stamp duty + registration for common states:nMaharashtra: 6% stamp duty (3% for women) + 1% registrationnDelhi: 6% men, 4% women + 1% registrationnKarnataka: 5% + 1% registrationnTamilnadu: 7% + 4% registrationnRajasthan: 6% + 1% registrationnnFor capital gains calculation: stamp duty and registration paid at purchase are part of cost of acquisition and can be included in indexed cost (for property sold under old regime). Also note: if stamp value > sale price by 10%+, stamp value is deemed as sale/purchase price.
Formula
Real-life example
Rahul buys Rs 80L flat in Mumbai. Stamp duty (6%) = Rs 4.8L. Registration (1%) = Rs 80K. Misc = Rs 20K. Total registration cost: Rs 5.8L. He needs this Rs 5.8L over and above the Rs 16L down payment (20% LTV). Total own funds required at purchase: Rs 21.8L.