LoansFinancial Glossary
Stamp Duty
Definition
A tax levied by state governments on property transactions, calculated as a percentage of the property's market value or transaction value (whichever is higher). Stamp duty rates vary by state (3-8% across India) and may differ based on the property type, buyer's gender, and urban/rural location.
Why It Matters
Stamp duty is one of the largest hidden costs in property purchase. On a Rs 1 crore property in Maharashtra, stamp duty of 6% means Rs 6 lakh — a significant sum that is not covered by the home loan. Several states offer concessions for women buyers (1-2% lower). Always factor stamp duty into your total property budget.