Stamp Duty & Registration Charges.

Stamp duty is a state government tax levied on property sale transactions. It is calculated on the transaction value or the government circle rate, whichever is higher. The stamp paper for the sale deed must be purchased for this amount before the property is registered.

In most Indian states, stamp duty is paid by the buyer. The registration charges that accompany stamp duty are also typically the buyer's responsibility, though this can be negotiated as part of the sale agreement.

Some states do. Delhi, Maharashtra, Haryana, Uttar Pradesh and Punjab, among others, charge a lower rate when the property is registered in a woman's name. Karnataka does not: stamp duty there is 5% plus cess and surcharge (5.6% in Bengaluru) whoever the buyer is. Pick your state in the calculator above and the gender selector applies that state's own rule.

Stamp duty is paid on whichever is higher — the sale agreement value or the government's guidance value (also called circle rate or ready reckoner rate). If you buy a property below the guidance value, you still pay stamp duty on the guidance value.

Only under the old tax regime. There, stamp duty and registration charges on a residential property count towards the Section 80C limit of ₹1.5 lakh in the year you pay them. The new regime, which is now the default for salaried taxpayers, allows no 80C deduction at all, so check which regime you file under before counting on this.

Stamp duty must be paid before or at the time of signing the sale deed. The registration of the property at the sub-registrar office also happens on the same day. Delays or underpayment can attract penalties, so it's important to calculate the correct amount in advance.