What is Stamp Duty? | Real Estate Glossary | knocKnock
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What is Stamp Duty?

Stamp duty is a state government tax paid during property registration, calculated as a percentage of the property value or market value, whichever is higher.

Stamp duty is a tax levied by the state government on property transactions. It is payable when a property is transferred from one person to another and must be paid before or at the time of property registration. The property sale is not legally valid without payment of stamp duty.

Stamp duty in Telangana (Hyderabad): - General rate: 4% of property value (on market value or sale value, whichever is higher) - For women buyers (sole owner): Some states offer a 1-2% concession - Registration charges: Additional 0.5% of property value - Transfer duty: 1.5% of property value

Total registration cost in Hyderabad: ~6% of property value (stamp duty + registration + transfer duty)

Example: For a property valued at ₹1 crore in Hyderabad: - Stamp duty (4%): ₹4,00,000 - Registration (0.5%): ₹50,000 - Transfer duty (1.5%): ₹1,50,000 - Total: ₹6,00,000

Key points: - Stamp duty is calculated on market value (government circle rate) or actual sale price, whichever is higher - It must be paid before taking possession - Stamp duty is a one-time, non-refundable payment - You can claim tax deduction on stamp duty under Section 80C (up to ₹1.5 lakh) in the year of payment - E-stamping is now mandatory in most states for transparency

Frequently Asked Questions

What is the stamp duty rate in Hyderabad?
In Telangana, the stamp duty rate is 4% of the property value. Along with registration charges (0.5%) and transfer duty (1.5%), the total comes to approximately 6% of the property value.
Can stamp duty be included in a home loan?
Yes, most banks allow stamp duty and registration charges to be included in the home loan amount. However, this increases your loan principal and overall interest outgo.
Is there a stamp duty concession for women buyers?
Telangana currently does not offer significant stamp duty concession for women buyers, unlike some other states. However, policies may change, so check the latest government notifications.

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