Stamp duty is a state government tax on property transfer, typically 4-8% of the property value, plus a registration charge of about 1%. It is calculated on the higher of the circle/guidance value or the actual transaction value. Many states give women buyers a 1-2% rebate. On the income-tax side, stamp duty and registration charges on a new residential house are deductible under Section 80C (within the Rs 1.5 lakh limit, in the year of payment) — but only under the old tax regime.
Stamp duty and registration are levied by each state under its own Stamp Act, so rates, women/first-buyer concessions and caps differ widely and are revised frequently. The figures below are indicative for urban residential property — always confirm the current rate with your state's registration / IGR department before you budget.
Stamp Duty & Registration Rates (Indicative)
Rates apply to urban residential property. Rural, commercial and special categories may differ. Registration charge is usually about 1% (often capped). Verify with your state before registering.
| State | Men Buyer | Women Buyer | Registration | Notes |
|---|---|---|---|---|
| Delhi | 6% | 4% | 1% (cap ~Rs 1,00,000) | 1% MCD surcharge may apply |
| Maharashtra | 6%* | 6%* | 1% (cap ~Rs 30,000) | *Incl. 1% metro cess in metros; ~1% women concession applies in some cases |
| Karnataka | 5.6% | 5.6% | 1% | Incl. surcharge/cess; guidance value applies |
| Uttar Pradesh | 7% | 6% | 1% (cap ~Rs 20,000) | 1% rebate for women up to a value cap; circle rate applies |
| Tamil Nadu | 7% | 7% | ~2-4% | No gender rebate; guideline value used |
| Telangana | 4% | 4% | 0.5% | + ~1.5% transfer duty; no gender difference |
Indicative only, subject to state notifications and periodic revision. Confirm current rates with the state registration/IGR department.
Circle Rate vs Market Value
Stamp duty is charged on the higher of the circle rate (the state-notified ready-reckoner / guidance value) or the actual transaction value. If you buy below circle rate, duty is still charged on the circle rate. Under Sections 43CA / 50C, a gap of up to 10% between the two is ignored for income-tax purposes; a larger gap can be taxed as income.
6% state · Rs 80L property
4% state · Rs 50L property
Stamp duty and registration together commonly add roughly 5-9% of the property value to your cost, over and above the price and GST (where applicable on under-construction homes). Factor this in early — it is paid upfront at registration and cannot be part-financed by most home loans.
Section 80C Deduction on Stamp Duty
Stamp duty and registration charges on a new residential house are deductible under Section 80C, within the overall Rs 1.5 lakh ceiling, in the year of payment. It works only in the old tax regime — the default new regime does not allow it.
- Old regime only — not available if you opt for the new tax regime
- Residential house — commercial property, resale/second-hand homes and bare plots generally do not qualify
- Year of payment — one-time claim in the financial year the duty is actually paid
- Within Rs 1.5 lakh — shared with all other 80C items (PPF, ELSS, home-loan principal, etc.)
- 5-year lock-in — sell the house within 5 years and the 80C benefit is reversed and taxed
- Joint buyers — co-owners can split the claim by ownership share, each within their own Rs 1.5L limit
Stamp duty does not get its own separate limit — it competes with your other 80C investments inside the same Rs 1.5 lakh cap. If your EPF, PPF and home-loan principal already fill the Rs 1.5 lakh, the stamp duty adds no further deduction. Home-loan interest is separate, under Section 24(b).
Bought a home this year? Get every deduction claimed correctly.
Get ITR Filing Help →194IA TDS & Capital-Gains Cost
| Provision | Section | Effect | Regime |
|---|---|---|---|
| 80C deduction (new residential house) | 80C | Up to Rs 1.5L in year of payment | Old only |
| Part of cost of acquisition | Sec 48 | Reduces capital gain when you later sell | Both |
| Buyer TDS on purchase | 194IA | 1% if consideration or stamp value ≥ Rs 50L | Both |
| Circle rate vs value gap | 43CA/50C | Gap over 10% can be taxed as income | Both |
194IA: buyer deducts 1% and deposits via Form 26QB (Income-tax Act, 1961 framework up to 31 Mar 2026).
Even if you take the new regime and lose the 80C deduction, stamp duty and registration are never wasted: they are added to your cost of acquisition under Section 48, so they reduce your capital gains whenever you sell the property.
How to Claim Stamp Duty in Your ITR
- Registered sale deed
- Stamp-duty payment receipt / challan
- Registration-charge receipt
- Proof property is residential
- Old tax regime selected before filing
- Form 26QB (if price ≥ Rs 50L)
- Form 12BB submitted to employer
- 80C not already fully used elsewhere
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Get ITR Filing Help →Stamp Duty on Property — Frequently Asked Questions
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