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