What is stamp duty in India

There are a lot of misconceptions about stamp duty in India. Numerous factors affect the stamp duty charges incurred on the property. If you are thinking, what is stamp duty in india? Read below to find out 

What is Stamp duty?

Stamp duty is imposed by the government on properties. The state government imposes this tax when a property is sold i.e. when the ownership of the property is transferred. Stamp duty is levied on the property of residential nature, property of commercial nature, and property that is leased. The duration of the stamp duty in India will depend on property value. 

Factors that impact Stamp Duty :

•  State Government:

 Stamp duty is levied by the state government. The stamp duty varies from one state to another.

•  Property value:

 Stamp duty depends on the total value of your property. The value of the property is calculated during the registration process.eg.The stamp duty in Karnataka is 3% and Bombay is 5 %.

•  Location of property:

   The location of your property within a state will impact stamp duty. Property located in urban areas has different stamp duty levied than rural areas.

• Purpose of the property 

Stamp duty incurred on your property will depend on the purpose of the property, property being used for commercial purposes will have different stamp duty than residential property.

•  Year of Construction

 If your property is new, the state government might levy different stamp duty than on a property that is old. Newer properties will get charged stamp duty at the current rate.

 Stamp duty is levied on transfer of ownership of the property, deed of conveyance, tenant agreements, shares and other exchange bills to name a few. 

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