How Stamp Duty Works

Stamp duty is charged on the higher of the agreement value or the government's circle rate. Many states offer 1–2% lower rates for women buyers. Stamp duty and registration paid on residential property qualify for deduction under Section 80C up to ₹1.5 lakh.

Worked Example

A ₹50,00,000 apartment in Maharashtra registered by a male buyer costs ₹3,00,000 in stamp duty (6%) plus ₹50,000 registration (1%) — ₹3,50,000 on top of the purchase price. The same property in Tamil Nadu costs ₹3,50,000 + ₹2,00,000 = ₹5,50,000, a two-lakh difference that should factor into where you buy.

Budgeting for the Purchase

Registration charges and most of the stamp duty must be paid in cash at closing — they cannot be added to your home loan in most states. Buyers routinely forget this 5–10% cash outlay, so plan for it alongside the down payment when saving for a property.