Stamp Duty
Definition
A tax paid to the state government when purchasing property. Rates vary by state: Maharashtra (5-6%), Karnataka (5%), Delhi (4-6%), Tamil Nadu (7%). Some states offer reduced rates for women buyers (1% rebate). Stamp duty is not tax-deductible.
Why is Stamp Duty Important?
When applying for a loan in Indiaโwhether it's a home loan, personal loan, or car loanโthe concept of Stamp Duty plays a significant role in determining your total borrowing cost. Lenders use factors like this to assess credit risk, determine eligibility, and structure your EMI schedule. Understanding this term helps borrowers negotiate better interest rates, choose the right loan product, and save money over the loan tenure.
For accurate financial planning, it is highly recommended to use our free online calculators to see how Stamp Duty impacts your specific scenario. Real-time calculations provide clarity on monthly outgoes, principal vs. interest components, and long-term financial burdens.
What is Stamp Duty?
Stamp duty is a tax levied by the state government on the transfer of property ownership. It is mandatory for all property transactions (purchase, gift, lease) and must be paid at the time of property registration. Rates vary significantly by state.
Stamp Duty Rates Across Major States
| State | Male Buyer | Female Buyer | Joint (M+F) |
|---|---|---|---|
| Maharashtra | 6% | 6% | 6% |
| Delhi | 6% | 4% | 5% |
| Karnataka | 5% | 5% | 5% |
| Tamil Nadu | 7% | 7% | 7% |
| Rajasthan | 6% | 5% | 5.5% |
| UP | 7% | 6% | 6.5% |
Tax Benefits
Stamp duty paid on a home purchase can be claimed as a deduction under Section 80C (up to โน1.5 lakh) in the year of payment, under the old tax regime.