When you set out to buy a property, you have to budget additional expenses that you would have to incur during the process that includes stamp duty and registration charges.
What is stamp duty?
Stamp duty is a fee on real estate transactions that have to be paid during the transfer of an asset from one person to another, based on the total declared value of the property. If stamp duty is charged at four percent in your city, you have to pay Rs 4 for a property worth Rs 100. In India, stamp duty charges may differ from four to 10 percent, from state to state. Rules in this regard are governed by Section 3 of the Indian Stamp Duty Act, 1899.
What are the registration charges?
Registration charges are a one-time fee that you pay for registering the property transaction in the government records. These are kept typically at one percent of the transaction value, even as stamp duty charges vary from city to city, from an urban area to a rural area and from a male buyer to a woman buyer.