Question 1

What is stamp duty on property?

Accepted Answer

Stamp duty is a state-level tax levied by the government when you buy or transfer immovable property. It is calculated as a percentage of the property's market value or the agreement value, whichever is higher. The rate varies by state, typically ranging from 4% to 8%. Stamp duty must be paid before or at the time of registering the property sale deed. Until stamp duty is paid and the deed is registered, the transaction is not legally valid.

Question 2

Can stamp duty be claimed under Section 80C?

Accepted Answer

Yes. Stamp duty and registration charges paid on the purchase of a residential property are eligible for deduction under Section 80C of the Income Tax Act, within the overall limit of ₹1.5 lakh per financial year. The deduction must be claimed in the year in which you actually pay the stamp duty — not in future years. This deduction is available only for individuals and HUFs, not for companies or firms. Note that the ₹1.5 lakh limit is shared with all other 80C investments such as PPF, ELSS, and LIC premiums.

Question 3

Is stamp duty the same for men and women?

Accepted Answer

No. Several Indian states offer a concession of 1–2% on stamp duty for female property buyers to encourage women's property ownership. For example, Delhi charges 6% for male buyers but only 4% for female buyers. Maharashtra charges 6% for male buyers but 5% for female buyers. Rajasthan, Punjab, Haryana, and Uttar Pradesh also offer similar concessions for female or joint (with female as first owner) registrations. Always check the current rates with your state's registration authority as rules can change.

Question 4

When is stamp duty paid?

Accepted Answer

Stamp duty must be paid before or at the time of executing (signing) the sale deed, and the deed must then be registered at the Sub-Registrar's office within 4 months of its execution. Payment is typically made via franking, non-judicial stamp paper, or e-stamping through authorised banks. Delaying payment attracts a penalty — usually 2% per month on the deficient stamp duty, subject to a maximum of twice the original duty. In practice, buyers arrange stamp duty payment on the same day as property registration.

Stamp Duty & Registration Calculator

Calculate Stamp Duty & Registration

Frequently Asked Questions