Homebuyers in India must pay stamp duty along with the registration fee at the time of property registration in the sub-registrar’s office. This pops the question, why are there two different charges? Is stamp duty and registration fee the same thing? If not, is paying both mandatory?
What is stamp duty?
Property buyers in India must pay a stamp duty to their state’s revenue department at the time of registration. The stamp duty is paid to procure non-judicial stamp papers issued by the state government. All rules and regulations related to stamp papers and stamp duty are elaborated in the Indian Stamps Act.
What is a registration fee?
Registration charge is the fee buyers must pay to the authorities to avail of the property registration services. All rules and regulations related to registration are elaborated in the Registration Act, 1905.
How are the two different?
Land in India is a state subject. To levy and collect taxes on transactions related to land and property, states have been given the power to issue and sell stamp paper. Stamp papers provide legal validity and enforceability to property-related agreements made between two parties. Stamp duty is thus the fee a homebuyer pays to procure stamp papers of the appropriate worth from the revenue department.
Property registration amounts to a great deal of paperwork on part of the revenue department. In that sense, the registration fee is more of a service charge paid to the state.
Which laws in India regulate stamp duty and registration fee?
Receipts from stamp duty and registration fees are regulated under the Indian Stamp Act 1899, and the Registration Act, 1908, while the twin duties are framed and altered by states.
While levying o stamp duty is entirely a state subject, registration of deeds and documents is included in the Concurrent List of the Constitution. The power to legislate on this subject is thus vested in both the Union Legislature and the state legislature.
What is the difference between stamp duty and registration fee rates?
States levy different stamp duties on different instruments related to property transactions. Stamp duty and property transactions differ from state to state. With a state, stamp duty and property transactions differ from instrument to instrument. For instance, in most states, stamp duty on a sale deed would typically be higher than the stamp duty on, say, a Will or power of attorney.
Stamp duty in key Indian states
| States | Stamp duty (as a percentage of transaction value) |
| Andhra Pradesh | 5% |
| Arunachal Pradesh | 6% |
| Assam | 6% |
| Bihar | 6% |
| Chhattisgarh | 5% |
| Goa | 3-6%, based on transaction value |
| Gujarat | 4.90% |
| Haryana | 5-7% depending on area |
| Himachal Pradesh | 6% |
| Jharkhand | 4% |
| Karnataka | 3-5%, based on transaction value |
| Kerala | 7% |
| Madhya Pradesh | 8% |
| Maharashtra | 3-6% based on transaction value |
| Manipur | 4% |
| Meghalaya | 9.90% |
| Mizoram | 5% |
| Nagaland | 8.25% |
| Odisha | 5% |
| Punjab | 7% |
| Rajasthan | 6% |
| Sikkim | 5% |
| Tamil Nadu | 7% |
| Telangana | 4% |
| Tripura | 5% |
| Uttarakhand | 5% |
| Uttar Pradesh | 7% |
| West Bengal | 3-5% based on property value |
| Delhi | 6% |
Property registration fee in Indian states
While most states charge 1% of the property value as the registration fee, some other states levy a higher charge.
Registration fees in key Indian states
| State | Registration fee (as a percentage of transaction value) |
| Andhra Pradesh | 1% |
| Arunachal Pradesh | 1% |
| Assam | 8.5% |
| Bihar | 1% |
| Chhattisgarh | 1% |
| Goa | 1% |
| Gujarat | 1% |
| Haryana | 1% |
| Himachal Pradesh | 1% |
| Jharkhand | 1% |
| Karnataka | 1% |
| Kerala | 1% |
| Madhya Pradesh | 2% |
| Maharashtra | 1% |
| Manipur | 3% |
| Meghalaya | 1% |
| Mizoram | 1% |
| Nagaland | 1% |
| Odisha | 1% |
| Punjab | 1% |
| Rajasthan | 1% |
| Sikkim | 1% |
| Tamil Nadu | 2% |
| Telangana | 1% |
| Tripura | 1% |
| Uttarakhand | 1% |
| Uttar Pradesh | 1% |
| West Bengal | 1% |
| Delhi | 1% |
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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