Glossary · Real Estate & RERA
Stamp Duty
A state-level tax paid on the value of a property at the time of purchase or transfer, levied under the Indian Stamp Act, 1899.
Stamp duty is calculated on the property's market value or the transaction value, whichever is higher. Rates vary by state: Karnataka 5%, Tamil Nadu 7%, Maharashtra 5-7%, Delhi 4-6%, UP 7%, Gujarat 4.9%. Women buyers get a 1-2% discount in some states. The buyer pays stamp duty either physically on stamp paper (for low-value transactions) or online (for higher-value ones) and the document is registered within 4 months to be admissible in court. Non-payment attracts penalties up to 10 times the duty.
Examples
A ₹1 crore flat in Bengaluru attracts 5% stamp duty = ₹50,000, plus 1% cess and ₹1,000 registration fee, totalling around ₹52,000.