Module 4 of 6 — Sale Deeds and Property Conveyance

Stamp Duty and Registration Across States

Reading module · approx 12 min

Stamp duty and registration fees are state-specific and constitute one of the largest transactional costs in Indian real estate.

Stamp duty: the state-specific landscape

Rates vary significantly:

Maharashtra: approximately 5% to 7% depending on municipality and buyer (women buyers typically get 1% concession)
Karnataka: approximately 5% for urban property
Tamil Nadu: approximately 7% plus registration
Delhi: 6% for men, 4% for women
Haryana: approximately 5% to 7% depending on district and gender
Uttar Pradesh: approximately 7% base rate
West Bengal: approximately 6% to 7% urban
Kerala: approximately 8% depending on category

Rates change periodically through state budget notifications. Verify at time of transaction, particularly around state budget season.

Ready reckoner value / circle rate

Stamp duty is calculated on the higher of actual consideration or the "ready reckoner value" (Maharashtra) / circle rate / guidance value / market value (state-specific terms). The state fixes reference values annually to establish a floor for stamp duty. Under Section 50C of the Income Tax Act, if consideration is less than reference value, reference value is deemed to be the sale consideration for capital gains purposes.

Registration fees

Typically 1% of value with a state-specific maximum. Some states have moved to a percentage without cap for high-value transactions.

Registration procedure

Preparation of sale deed on stamp paper (or e-stamping in states that have moved to it)
Payment of registration fees
Booking a time slot at the sub-registrar's office
Personal appearance of both parties with identity and address proof, PAN card, photographs
Two witnesses attending
Presentation of the deed
Biometric capture
Signing before the sub-registrar
Endorsement of registration
Return of the registered deed after processing

TDS on property purchase Under Section 194-IA, a buyer must deduct TDS at 1% of the consideration if the total exceeds Rs. 50 lakh. Deposited using Form 26QB; a TDS certificate (Form 16B) issued to the seller. Missing this creates issues for both buyer (penalty and interest) and seller (difficulty in filing capital gains return).

Mutation and post-registration steps

After registration, the buyer should complete mutation — the process by which the local revenue authority updates records to reflect the buyer as new owner. Mutation is important because property tax bills, revenue records, and future transactions depend on it.

Module 5 covers the encumbrance certificate.