Stamp duty & registration
The two things buyers get caught by: duty is charged on the circle value when it is higher, and several states charge less when the buyer is a woman — a decision that must be made before the deed is drafted.
Your numbers
| Charged onThe higher of agreed price and circle value. | — |
| If registered in a woman's name | — |
| Saving from the concessionWorth raising before the sale deed is drafted, not after. | — |
| As a % of the agreed price | — |
Stamp duty is the largest single cost on top of the price, and it is the one buyers most often discover late.
Two things catch people out. First, several states charge a lower rate where the buyer is a woman, which on a large purchase is a substantial saving worth raising before the paperwork is drawn. Second, duty is normally levied on the agreed value or the circle / ready-reckoner value, whichever is higher — so a below-circle-rate deal does not reduce the duty.
How it is charged
Duty applies to the consideration recorded in the instrument, subject to a floor at the state's circle or ready-reckoner value for the property. If the agreed price is below that floor, duty is still calculated on the floor — which is why an unusually cheap deal does not produce an unusually cheap registration.
Registration fee is typically a further percentage, and several states cap it at a fixed maximum.
Worked example
An ₹80 lakh flat where the circle value is ₹75 lakh. Duty is charged on ₹80 lakh, the higher figure. At 6% that is ₹4.8 lakh, plus 1% registration at ₹80,000 — ₹5.6 lakh in total, 7% of the price, payable in cash at registration.
Registered in a woman's name in a state offering a 1% concession, the duty falls to ₹4 lakh and the total to ₹4.8 lakh — an ₹80,000 saving for a decision made before the deed is drafted.
What agents should do with this
Raise the joint-ownership and concession question early, alongside the buyer's lawyer. It is a legitimate saving, it must be reflected in how the deed is drawn, and it cannot be retrofitted afterwards.
Rates, concessions, floors and caps are set by each state and change. This calculator uses whatever rates you enter — confirm the current ones with the sub-registrar or the buyer's lawyer before anyone relies on the figure.
Questions
Is stamp duty charged on the agreed price or the circle rate?
On whichever is higher, in most states. Buying below circle rate does not reduce the duty, and in some cases the difference can have income tax implications for both parties — worth a word with a chartered accountant.
Do all states give a concession to women buyers?
No. Several do, some offer it only on joint ownership with a woman as first holder, and the size varies. Set the second rate equal to the first if your state has no concession.
Can stamp duty be paid from the home loan?
Usually not. Most lenders exclude it, so it has to come from the buyer's own funds on the day — which is why it belongs in the cash-at-registry conversation.
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