Stamp Duty and Registration Charges Explained: Complete Guide for Property Buyers
Oct 23, 2025
What is Stamp Duty?
Stamp duty is a state-government tax imposed on legal documents related to the transfer of immovable property. When you buy land, a house, or a commercial building, the deed recording that transfer must carry a stamp duty payment to become legally valid. In essence, it’s the tax levied for the act of transferring ownership.
It is which type of tax? It functions as a documentary tax under the Indian Stamp Act, 1899 and helps record and validate property transactions.
Understanding what is stamp duty value means recognising the base (market value or consideration) on which the duty is calculated.
Why Do You Need to Pay Stamp Duty and Registration Charges?
Legal Recognition: Without paying stamp duty and completing registration (the process of recording the transaction), your ownership may not stand up legally.
Protection of Buyer & Seller: The documentation ensures the transaction is official and transparent.
Transfer of Ownership: Registration charges help reflect the change in ownership in government records.
Proof for Future Deals: You’ll typically need these documents and receipts when you sell, mortgage, or develop the property.
Civic and State Revenue: These charges contribute to state revenue and help fund public services.
How to Calculate Stamp Duty & Registration Charges
The calculation depends on multiple variables: property value (often the higher of consideration or government guideline/ready reckoner value), location (urban vs rural), type of property (residential/commercial/land), and, in some states, ownership type (male/female/joint).
Tip: Many states provide a stamp duty calculator online to help determine the amount.
Stamp Duty and Registration Charges in Andhra Pradesh (AP)
Typical sale of property transactions: Stamp duty ~ 5% of property value; registration charges ~ 1%.
For example, if a property is valued at ₹50 lakh:
Stamp duty = 5% of ₹50 lakh → ₹2.50 lakh
Registration = 1% → ₹50,000
Total additional charges ~ ₹3 lakh
For gift deed in AP: If given to a family member, stamp duty ~ 2% and registration ~ 0.5%. If to non-family, higher rates apply.
Note: Rates and rules may vary slightly depending on district and type of land, so always check official state portals.
Stamp Duty and Registration Charges in Telangana
Standard rate for many area types: Stamp duty ~ 4% of property value; registration charges ~ 0.5%; plus sometimes a transfer duty ~ 1.5%.
For some sale deeds in Gram Panchayat limits or other areas, stamp duty can be 5.5% or higher.
Example: Property value ₹50 lakh → Stamp duty ~ ₹2 lakh; Registration ~ ₹25,000; Transfer duty (if applicable) ~ ₹75,000 → Total ~ ₹2.25 lakh.
Many states publish ready reckoner/valuation tables to determine market values on which duty applies.
Special Cases: Gift Deed, Agreement, Land Type
Gift Deed: Varies by state and whether recipient is family member. For example, in Telangana: Stamp duty for a gift to family might be ~2% + registration ~0.5%. For non-family, higher rates.
Lease/Agreement: In AP, leases >10 years attract higher duty (e.g., ~5%).
Land (agricultural/non-agricultural): Rates may differ for non-urban areas and depending on land use. In AP, agricultural land also subject to ~5% stamp duty + 1% registration.
Who Pays Stamp Duty – Buyer or Seller?
In most Indian states, the buyer is primarily responsible for paying stamp duty and registration charges at the time of registration. However, sometimes the seller may share or negotiate costs—so check transaction agreements.
Important for buyers to be aware of these costs and factor them into investment decisions.
How to Find Stamp Duty Value & Pay Online
Check official Registration & Stamps Department portals of the state for ready reckoner/market values. Example: Telangana’s portal lists valuations.
Use online stamp duty calculator tools (many portals provide calculators).
Online Payment Steps:
Visit state portal → select document type (sale deed, gift, etc.)
Enter property value/consideration and other details
Calculate duty & registration fee
Pay via approved modes (net-banking / UPI / debit)
Print or download receipt; complete registration at Sub-Registrar’s Office
When You Should Pay & Consequences of Non-Payment
Must be paid at time of registration, before or during visit to Sub-Registrar’s Office.
Delay in payment or under-payment may lead to penalties, disallowance of registration, or future legal issues.
Always ensure your Encumbrance Certificate (EC) and ownership records reflect correct data.
. Key Takeaways for Property Buyers
Factor stamp duty & registration charges into your investment cost — it can be 5%-6% or more of property value.
Check state-specific rates: AP (~5 % + 1 %) and Telangana (~4% + 0.5% + 1.5%).
Choose state/zone based on your property type, investment horizon, land use and budget.
Use official online tools to verify values and pay correctly.
Ensure transaction documentation is clear, ownership is updated and payments done — these affect the resale, mortgage and legal standing of your property.
