Homebuyers on Stamp Duty Rates
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The tax homebuyer pays for purchasing a property is known as the Stamp Duty and it is mandatory to be pay it irrespective of the property you purchase, means that the Stamp Duty is levied on the purchase of both commercial and residential properties which further segregates into freehold and lease land. The rate of Stamp Duty varies from State to State and women get a concession in paying stamp duty charges which helps the home buyers to save while investing in property.

So, here are the basics you must know about Stamp duty.

  1. Way to Calculate Stamp Duty:

The buyer has to bear the Stamp duty charges and this charge ranges from 3% to 10% according to the rate fixed by the State Governments.

The Stamp duty charge is calculated on the higher amount out of the property cost and circle rate of the area. For example, the stamp duty rate is 4%, the circle rate is Rs.40 lakhs and you have purchased a property worth Rs.50 lakhs then, the authority checks both the RRR [Ready Reckoner rate] also known as the circle rate and the property cost as per the agreement. Then, you have to pay Rs. 2,00,000 as Stamp duty charge. This is because the stamp duty is calculated according to the property cost which is Rs.50 lakhs and not by the circle rate which is lesser than the property value.

  1. Factors Considered While Calculating Stamp Duty Rate:

There are six major points which are considered at the time of deciding the percentage for stamp duty. These factors are:

Construction Status of the property For example, Newly Constructed property or Old Structure.

Locality of the property – Weather the property is located in an Urban, Rural, Suburb or Metropolitan area.

Owner’s Age – Some states offer a rebate to senior citizens.

Owner’s Gender – Women particularly gets rebate on Stamp duty.

Property Type – Apartment or an Independent floor.

  1. Payment Procedure for Stamp Duty

There are three ways to pay stamp duty which are:

  • Non-Judicial Stamp paper Method – The details of an agreement is mentioned in these papers and are signed by the concerned authority. It is also compulsory to register the same at the Sub-registrar office within four months.
  • Franking Method – Here, the agreement is documented on a plain paper which is then submitted to a bank. After submission, the bank processes this document via a franking machine.
  • E-Stamping Method – The online payment system for stamp duty is known as an E-Stamping method. Under this, a person can make payment online via RTGS/NEFT. Once the payment is received then the dated Stamp Duty certificate can be downloaded for completing the registration process.

 4. In case of Paying Insufficient Stamp Duty Charge

Firstly, the payment of less stamp duty charge impacts the Government directly as they suffer huge revenue loss due to this. Secondly, a person seeking tax evasion by paying an inadequate sum of stamp duty is punished as per the law. A person is penalized for depositing an inadequate amount of stamp duty as he/she has to deposit 8-20% of the actual Stamp duty as it varies from state to state. There are provisions for a penalty as per minimum limits and imprisonment under few clauses.

  1. Rebate on Stamp Duty:

The women homebuyers’ can avail rebate on stamp duty charges in many states. Also, if the Government gives nod to exempt stamp duty from affordable housing then many property buyers can avail huge rebate on the same payable amount.

  1. Stamp Duty Percentage in various cities:



Stamp Duty Rate




4% – 6%




3% -5%








3% -5%
















5% – 7%