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Stamp Duty Calculation

Stamp Duty Calculation

What is Stamp Duty?

Possession is the physical transfer of the property is not sufficient. You also need to have legal ownership. At the time of registration, you will also have to pay a stamp duty which is a government tax levied on property transactions.

How is the stamp duty calculated?

Stamp duty is calculated on the market value or the circle rate, whichever is higher. Further, it is payable only on the content of the property registration agreement, not on the transaction value.

While calculating Stamp Duty following things needs to be taking care in consideration

  • Stamp Duty charges
  • Circle Rate
  • Plinth Area- Built up Area
  • Age of Construction
  • Cost of Construction
  • Calculation variance of different structure- Pucca, Semi-Pucca, Kutcha
  • Minimum rate of built up flat

The stamp duty charges vary from state to state. The amount also depends on several other factors such as:

  • Old or new property
  • Rural or urban property
  • Male or female property owner
  • Agricultural or non-agricultural
  • Freehold or leasehold
  • Residential or commercial units
  • Multi – storied apartments or independent houses

To assess the market value, stamp duty authorities refer to the Stamp Duty Ready Reckoner, which is issued on 1st January every year by the government.

Formula used for Stamp Duty calculation

  1. Land Minimum cost of land

               = (minimum value of Land rate per sq. mtrs) × proportionate Area × use factor

  1. Minimum cost of construction

               = (Cost of construction) × Plinth area × (age factor) × (STF)

  1. Minimum value= (1+2)
  2. Stamp Duty @ x% of 3

Stamp Duty and Registration rates in different states

State

Criteria

Stamp Duty

Registration Duty

Andhra Pradesh

Sale deed

4%

0.5% 

Andhra Pradesh

Conveyance Deed through gift, mortgage, lease, etc.

5%

0.5% 

Tamil Nadu

No Criteria

7%

 1%

Karnataka

No Criteria

5%

1%

Goa

No Criteria

7%

1%

Gujarat

No Crtiteria

3.50%

1.05%

Rajasthan

General case

5%

1%

Disabled

4%

1%

Female

4%

1%

Punjab

No Criteria

6%

1%

Odisha

No Criteria

7%

2%

Maharashtra

In Municipal Corporation

5%

1%

In Municipal Council

4%

1%

In Gram Panchayat

3%

1%

Delhi

Female

3%

1%

Male

5%

1%

Chattisgarh

No Criteria

7.50%

1%

Manipur

No Criteria

4%

3%

Sikkim

No Criteria

4%

3%

Madhya Pradesh

No Criteria

8%

1%

Uttar Pradesh

No Criteria

12.50%

2%

West Bengal

In Municipal limits

6%

1.10%

Outside Municipal limits

5%

1.10%