When buying a property, there are various additional expenses to bear other than the property cost. One of them is the stamp duty charges, which increase the property’s overall price significantly. If you’re relying on housing finance to make the purchase, know that stamp duty costs and registration charges are not a part of the home loan. As a borrower, you must pay for them yourself.

What are stamp duty charges?

The stamp duty on property purchaseis a one-time real estate transaction fee levied by the state government during property registration. The charged fee is a percentage of the property’s total declared value. So, if a city levies 6% stamp duty, you must pay Rs. 60,000 to a registrar for a property priced at Rs. 10 lakhs.

In India, stamp duty rates range from 4 to 10%, depending on the city you’re buying the property. When calculating the stamp duty cost, the property’s total saleable value is considered. For this, the estate’s size is multiplied by its market value as provided by the builder. The floor rise, preferential location charges (PLC), and car parking charges are also added to the total saleable value.

Additional Read:  How to Calculate Stamp Duty Online

Stamp duty charges in the top Indian cities

Given below is a city-wise list of the stamp duty rates on property purchase:

  • Stamp duty on property in Mumbai – The stamp duty rates have recently decreased in Mumbai, where home buyers must pay 3% when purchasing real estate.

Additional Read: All about the Stamp Duty and Registration Charges in Mumbai

  • Stamp duty on property in Kolkata – Kolkata’s stamp duty charges differ based on the property location. In the panchayat regions, a 5% stamp duty is levied on the total property value. A 6% rate is applicable in the corporation and municipal areas, with an additional 1% stamp duty in rural and urban areas if the property’s market value exceeds Rs. 40 lakhs.
  • Stamp duty on property in Delhi – The stamp duty rate in the nation’s capital is 6% currently. However, women homebuyers pay a reduced rate of 4%.
  • Stamp duty on property in Gurgaon – In Gurgaon, stamp duty rates are based on specific segments and buyer types. A 6% stamp duty is applicable for the rural areas, whereas the urban centres have an 8% rate. If going for a gift deed registration, you must pay a 3% stamp duty for rural areas and 5% for urban ones. However, sale deeds for women homebuyers include stamp duty charges of 4% in rural and 6% in urban regions.
  • Stamp duty on property in Bengaluru – Rural regions in Bengaluru levy a 5.65% stamp duty while the urban areas require 5.6%.
  • Stamp duty on property in Ahmedabad – Ahmedabad has a 4.9% stamp duty on property purchases, considered one of the lowest stamp duty rates amongst India’s major cities.

Need a home loan? Turn to Tata Capital 

Stamp duty charges are only one of the many additional charges levied on property purchase. Therefore, you must also factor in those charges before taking a home loan to avoid going over budget.

If you’re looking for affordable housing finance to buy a property, choose Tata Capital. Enjoy attractive home loan interest rates, comfortable repayment options, flexible eligibility terms, and much more!

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