How to calculate stamp duty and registration charges?

Here’s how to calculate stamp duty and registration charges,

1. Identify the market value or the circle rate (government-notified minimum value) of the property whichever is higher is used for calculation. If you buy lower than circle rate, the tax is still computed on circle rate.

2. In Uttar Pradesh, stamp duty is charged as a percentage of the property value: 6% if the buyer is female or joint female-female owner, 6.5% for male+female joint ownership, 7% for male or male+male ownership. These rates apply to sale deeds and similar property transfers.

3. Registration fee is 1% of the property value across all buyer categories in UP.

4. Suppose the property’s circle rate or market value is Rs. 1 crore and the buyer is male: Stamp Duty: 7% × Rs. 1,00,00,000 = Rs. 7,00,000, Registration Charge: 1% × Rs. 1,00,00,000 = Rs. 1,00,000. Total Tax Payable: Rs. 8,00,000.

5. If the buyer pays more than circle rate (e.g., Rs. 1.10 crore), the stamp duty and registration charges are calculated on the actual sale price: Stamp Duty: 7% × Rs. 1,10,00,000 = Rs. 7,70,000. Registration: 1% × Rs. 1,10,00,000 = Rs. 1,10,000.

6. Different deed types (e.g., gift or exchange) have their own stamp duty rules. Mostly, gift deeds among blood relatives have a flat minimal stamp duty, not the normal percentage.

Use the government’s IGRSUP portal or sub-registrar office to pay stamp duty and registration charges online or offline before executing the sale deed.

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Stamp Duty is a type of tax which is charged by the state government on the legal documents related to any property transaction. 

The charges paid for registering any property in someone’s name are called Registration Charges.

Stamp Duty and Registration Charges establish legality to the documents and prevent disputes related to the property. The Stamp Duty functions as the ownership proof in the court of law. 

The rates of Stamp Duty differ from state to state as the state governments fix the Stamp Duty. Stamp Duty rates can be between 2% to 10% of the market value of the property. The rates depend upon where the property is located, usage of it, type of the property, gender and age of the property’s owner, etc. 

Registration charges are levied by the central government, so registration charges are mostly the same all over the country. The Registration Charges are 1% of the market value of the property. 

There are various online stamp duty calculators available online which can be used by you in case of need. 

Following is the list of stamp duty charges being charged in some of the cities across the country:

City and rate of the Stamp Duty

• Bangalore: 2% to 5%

• Delhi: 4% to 6%

• Mumbai: 5%

• Chennai: 7%

• Kolkata: 5% to 7%

• Pune: 3%

• Noida: 7%

• Gurugram: 5% to 7%

To boost the real estate market, state governments and central governments are taking various steps, among which reducing the stamp duty and registration was one.