What is stamp duty?
Also called: stamp duty charges, e-stamp duty, stamp shulk, registry kharcha
Stamp duty is a state tax on documents that transfer property, paid by the buyer before the sale deed or agreement is registered. For most buyers it runs from about 5% to 8% of the higher of the deal price or the government's circle rate.
Because stamp duty is set by each state, the rate, the concessions and the valuation method all change at the state border. Delhi charges 6% for men and 4% for women. Mumbai charges 6% (5% duty plus a 1% metro cess), while Pune, Thane and Navi Mumbai add a further 1% local body surcharge for a total of 7%. Uttar Pradesh charges 7%, with a 1 point rebate for women on property worth up to ₹1 crore since July 2025. Kerala is at 8%, Gujarat at 4.9%, and Karnataka works out to 5.6% in cities once cess and surcharge are added to the 5% duty.
Duty is calculated on whichever is higher: the price in your agreement or the government's minimum value for that locality. That minimum goes by a different name almost everywhere. It is the circle rate in Delhi and UP, the collector rate in Haryana and Punjab, the ready reckoner rate in Maharashtra, the guidance value in Karnataka, the guideline value in Tamil Nadu, the jantri in Gujarat and the DLC rate in Rajasthan. Agree a price below it and you still pay duty on the higher figure, and the seller may face income tax on the gap under the stamp-value rule that was Section 50C of the 1961 Act.
Most states now collect duty electronically: SHCIL e-stamps in Delhi and UP, GRAS in Maharashtra, e-GRAS in Haryana. For an under-construction flat in Maharashtra, duty is paid when the agreement for sale is registered, often within weeks of booking. In the NCR it is usually paid at the sale deed stage near possession.
RBI rules stop banks counting stamp duty and registration in the property cost for a home loan, except on very small homes, so the money has to come from savings. It can be claimed within the ₹1.5 lakh limit under Section 123 of the Income-tax Act, 2025 (the old Section 80C), in the year you pay it, but only under the old tax regime.
On a ₹75 lakh flat in Gurugram where the collector rate is below the price, a man buying alone pays 7%, or ₹5.25 lakh, and a woman pays 5%, or ₹3.75 lakh. The Haryana registration fee for that value is a fixed ₹40,000 on top.
Leaving stamp duty out of the budget on the assumption that the home loan covers it. It doesn't, and with registration it often comes to 7% to 8% of the price in cash.
Questions people ask about stamp duty
Can I get a refund of stamp duty if the deal is cancelled?
Most states refund unused or spoiled e-stamps if you apply to the stamp authority within a set period, commonly six months, after a small deduction. Once the document is registered, a refund is much harder to get.
Do women pay less stamp duty?
In several states, yes: Delhi, Haryana, Punjab, UP, Rajasthan and Maharashtra (for a woman buying alone) all have lower rates for women. Karnataka, Kerala, Telangana and West Bengal don't.