How to Calculate and Pay Stamp Duty in India — Step-by-Step Guide

To calculate stamp duty on a property transaction in India, determine the market value of the property (using the circle rate, guidance value, or ready reckoner rate published by your state government), apply the applicable stamp duty percentage for your state (typically 3-8%), and pay through e-stamping at shcilestamp.com, franking at an authorised bank, or by purchasing physical non-judicial stamp paper. Payment is instant for e-stamping and franking, and the process must be completed before the document is presented for registration at the Sub-Registrar's Office.

Who needs to pay stamp duty

• Any person executing a sale deed, conveyance deed, gift deed, exchange deed, or partition deed for immovable property
• Parties to a lease agreement or leave and licence agreement exceeding the prescribed threshold
• Parties to a mortgage deed, reconveyance deed, or release deed
• Parties to a Power of Attorney relating to immovable property
• Parties to a partnership deed, dissolution deed, or agreement to sell
• Any person executing an agreement, bond, affidavit, or other instrument listed in Schedule I of the Indian Stamp Act, 1899 or the applicable State Stamp Act

Note: While either party can pay stamp duty, the prevailing market practice in property transactions is that the buyer bears the stamp duty cost. This is also the default rule under Section 29(b) of the Indian Stamp Act for conveyances.

Documents you will need

Mandatory documents

• Draft instrument/document — The document on which stamp duty is to be paid (sale deed, lease agreement, gift deed, etc.) — you need the final draft to calculate the correct duty
• Property details — Complete address, survey/plot number, area (in square feet, square metres, or acres), and the locality classification (urban/rural, commercial/residential) for determining the circle rate
• Agreement value — The total consideration or transaction value agreed between the parties
• Circle rate/guidance value/ready reckoner rate — The government-published minimum value for the property's locality (available on state registration portals)
• Identity proof — Aadhaar card, PAN card, or passport of the person purchasing the e-stamp certificate
• Bank details — For online payment of stamp duty through e-stamping or franking

Additional documents (if applicable)

• Adjudication order — If you have obtained an adjudication of stamp duty from the Collector under Section 31 of the Indian Stamp Act (for uncertain instrument types)
• Exemption certificate — If claiming any stamp duty exemption (for example, certain states exempt transfers between spouses, or properties in special economic zones)

Step-by-step process

Step 1: Identify the type of instrument and applicable rate

Determine which type of document you are executing. Different instruments attract different stamp duty rates under Schedule I of the Indian Stamp Act, 1899 (as amended by state legislatures). A sale deed or conveyance deed attracts the highest rate (3-8% depending on the state). A lease agreement typically attracts a lower rate based on the annual rent and lease term. A gift deed between family members may attract concessional rates in some states. Check the specific rate for your instrument type on your state's registration portal or stamp duty schedule.

Where: State registration portal (igrmaharashtra.gov.in, igrs.up.gov.in, kaveri2.karnataka.gov.in, tnreginet.gov.in, etc.) Form: No form required — this is a research step Fee: No fee at this stage

Tip: Do not assume all property transfers attract the same rate. A gift deed, exchange deed, settlement deed, and sale deed may each have different rates in your state. Always verify the exact rate for your specific instrument type. Some states also have different rates for agricultural land versus non-agricultural land, or for properties within municipal limits versus outside.

Step 2: Determine the market value of the property

Stamp duty is calculated on the higher of two values: the agreement value (the price actually paid between buyer and seller) or the circle rate value (the government-determined minimum value for the property's locality). The circle rate is known by different names across India — circle rate (Delhi, UP), guidance value (Karnataka, Tamil Nadu), ready reckoner rate or Annual Statement of Rates (Maharashtra), collector rate (Rajasthan), and jantri rate (Gujarat).

Where: State registration portals publish circle rates — Maharashtra: igrmaharashtra.gov.in (select "Annual Statement of Rates"), Karnataka: kaveri2.karnataka.gov.in, Tamil Nadu: tnreginet.gov.in (select "Guideline Value"), UP: igrs.up.gov.in, Delhi: revenue.delhi.gov.in Form: No form — search by locality, survey number, or property address on the relevant portal Fee: Free to access online

Tip: Circle rates are revised periodically — annually in most states, sometimes more frequently. Always check the rate applicable on the date of execution of the document, not the date of the agreement to sell. If the agreement to sell was executed months before the sale deed, circle rates may have changed in the interim. The rate on the date of the sale deed execution is what applies.

Step 3: Calculate the stamp duty amount

Multiply the taxable value (higher of agreement value or circle rate value) by the applicable stamp duty percentage for your state. Add any surcharges, cess, or additional levies that your state imposes.

Calculation formula:

Stamp Duty = Taxable Value x Applicable Rate
Taxable Value = Higher of (Agreement Value, Circle Rate Value)

Example: Property in Mumbai, buyer is male

• Agreement value: Rs. 80 lakh
• Ready reckoner rate value: Rs. 75 lakh
• Taxable value: Rs. 80 lakh (higher of the two)
• Stamp duty rate: 6% (Mumbai urban area, male buyer)
• Stamp duty: Rs. 80,00,000 x 6% = Rs. 4,80,000
• Metro cess (1% in Mumbai): Rs. 80,000
• Registration fee (1%, capped at Rs. 30,000): Rs. 30,000
• Total payable: Rs. 5,90,000

Where: Calculate yourself or use the stamp duty calculator on the state registration portal Form: No form required Fee: No fee for calculation

Tip: Many state portals now have built-in stamp duty calculators. In Maharashtra, the IGR portal provides an automated valuation and duty calculation tool. In Karnataka, the Kaveri portal calculates stamp duty based on the property details you enter. Use these official calculators rather than third-party tools to ensure accuracy. Account for women buyer concessions — several states offer 1-2% lower rates for properties registered in a woman's name.

Step 4: Choose the payment method

Three methods are available for paying stamp duty. Choose the one that suits your transaction.

Method 1 — E-Stamping (recommended) Purchase an e-stamp certificate through the SHCIL (Stock Holding Corporation of India Limited) portal at shcilestamp.com. E-stamping is available in 22+ states, operates 24/7, and is the most secure method. Each e-stamp carries a unique Unique Identification Number (UIN) and QR code that can be verified online.

Method 2 — Franking Pay stamp duty at an authorised bank that provides franking services. The bank stamps the document with a franking impression and issues a receipt. Franking has daily and per-transaction limits in some states (for example, in Maharashtra the franking limit per transaction was historically Rs. 5,000 but has been revised upward).

Method 3 — Physical Non-Judicial Stamp Paper Purchase physical non-judicial stamp paper of the requisite denomination from a licensed stamp vendor. This is the traditional method, still used in areas where e-stamping is not available. Stamp papers are available in fixed denominations.

Where: shcilestamp.com (e-stamping), authorised banks (franking), licensed stamp vendors (physical) Form: Online registration on SHCIL portal for e-stamping; over-the-counter at banks for franking Fee: The stamp duty amount itself; no additional service charge for e-stamping (some banks charge a small franking fee of Rs. 50-100)

Tip: E-stamping is superior to physical stamp paper in every way — it cannot be forged, it can be verified instantly online, and it does not expire. Physical stamp paper can be counterfeited, may have an expiry issue (stamp paper must be used within 6 months of purchase in some states), and cannot be independently verified. For high-value transactions, always use e-stamping.

Step 5: Purchase the e-stamp certificate or pay via franking

For e-stamping: Register on shcilestamp.com, select your state and district, enter the document type and stamp duty amount, fill in the details of the parties (buyer and seller names, property details), and make payment through net banking, debit card, credit card, or UPI. The e-stamp certificate is generated instantly and can be downloaded and printed. The certificate must be attached to or mentioned in the document being registered.

For franking: Visit the authorised bank branch with the draft document and payment. The bank will frank the document (imprint a stamp impression) and issue a receipt.

Where: shcilestamp.com (online) or authorised bank branch (in person) Form: Online form on SHCIL portal; application form at the bank for franking Fee: Stamp duty amount + bank franking fee (Rs. 50-100 if applicable)

Tip: After purchasing the e-stamp certificate, verify it immediately on the SHCIL verification portal by entering the UIN and certificate number. This confirms the certificate is genuine and has been recorded in the SHCIL system. Save a digital copy of the certificate in addition to the printed copy. If the e-stamp certificate is lost, you can obtain a duplicate by applying to SHCIL with the UIN.

Step 6: Get adjudication if the stamp duty amount is uncertain

If you are unsure about the correct stamp duty for a particular instrument, apply for adjudication under Section 31 of the Indian Stamp Act, 1899. The Collector (or the authority designated by the state, often the Sub-Registrar or a Deputy Collector) will examine the instrument and determine the correct stamp duty. The adjudication order is binding and protects you against future claims of underpayment. Adjudication is optional but recommended for unusual or high-value transactions.

Where: Office of the Collector of Stamps or the designated adjudicating authority in your district Form: Application under Section 31, along with the instrument and supporting documents Fee: Rs. 100-500 adjudication fee (varies by state) — this is in addition to the stamp duty itself

Tip: Adjudication is particularly useful for instruments that are not straightforward — development agreements, joint development agreements, agreements with builders involving mixed consideration (part cash, part constructed area), and instruments involving property in multiple jurisdictions. The adjudication order protects you if the Sub-Registrar later questions the stamp duty paid.

Fees and costs

How long does it take

Can you do this online?

Yes, stamp duty can be paid entirely online through e-stamping.

E-Stamping via SHCIL (shcilestamp.com):

1. Visit shcilestamp.com and register for a new account (if first-time user)
2. Log in and select "Purchase e-Stamp Certificate"
3. Select your state and district
4. Choose the document type (sale deed, lease agreement, gift deed, etc.)
5. Enter the stamp duty amount (calculated in Step 3 above)
6. Fill in details of the first party (buyer) and second party (seller) — names, addresses, PAN numbers
7. Enter property details — address, area, survey number
8. Choose payment method — net banking, debit card, credit card, or UPI
9. Complete the payment
10. Download and print the e-stamp certificate bearing the UIN and QR code
11. Verify the certificate on the SHCIL verification page before presenting it at the Sub-Registrar

State-specific online portals:

• Maharashtra allows stamp duty payment directly through the IGR portal (igrmaharashtra.gov.in) as part of the e-registration process
• Karnataka's Kaveri portal (kaveri2.karnataka.gov.in) integrates stamp duty calculation and payment
• Tamil Nadu's TNREGINET (tnreginet.gov.in) offers online stamp duty payment

Note: While e-stamping is available 24/7 online, some states still require the e-stamp certificate to reference a specific transaction. Ensure the details on the e-stamp certificate exactly match the details in the document being registered — any mismatch can lead to rejection at the Sub-Registrar's Office.

What if things go wrong

Problem: Stamp duty underpaid — deficit discovered at the Sub-Registrar's Office

Solution: Under Section 47A of the Indian Stamp Act, the registering authority (Sub-Registrar or Collector) can examine any instrument and determine that stamp duty has been underpaid based on the market value. If a deficit is found, you must pay the difference plus a penalty. Penalty rates vary by state but typically range from 2% per month of the deficit amount to a maximum of 200% of the deficit. To avoid this, always calculate based on the circle rate (not just the agreement value) and use the official state calculator.

Problem: E-stamp certificate details do not match the document

Solution: If the names, property details, or other information on the e-stamp certificate do not match the sale deed or other instrument, the Sub-Registrar may reject the document. The e-stamp certificate cannot be corrected after issuance. You will need to apply for a refund of the incorrect e-stamp (SHCIL processes refunds within 30-60 days) and purchase a new e-stamp certificate with the correct details. Double-check all details before completing the e-stamp purchase.

Problem: Stamp duty paid on wrong type of instrument

Solution: If you paid stamp duty for one type of instrument (for example, a lease deed) but the actual document is a different type (for example, a sale deed), the duty paid may be insufficient. Apply for adjudication under Section 31 to get a determination of the correct duty. Pay the difference along with any applicable penalty. If you overpaid, apply for a refund under Section 49 of the Indian Stamp Act — refund claims must typically be filed within 6 months of the date of payment.

Problem: Physical stamp paper is counterfeit or already used

Solution: Counterfeit stamp paper is a known fraud risk in India. If the Sub-Registrar detects that the stamp paper is counterfeit or has been previously used (by verifying the serial number), the document will be rejected and you may face criminal consequences. This is why e-stamping is strongly recommended — each e-stamp certificate has a verifiable UIN and QR code. If you must use physical stamp paper, purchase only from licensed vendors and verify the serial number at the nearest treasury office before use.

Problem: Seeking a refund for unused or excess stamp duty

Solution: Under Section 49 of the Indian Stamp Act, you can claim a refund of stamp duty in specific circumstances — if the stamp paper was purchased but not used, if excess duty was paid, or if the underlying transaction was cancelled before execution. The refund application must be filed before the Collector within 6 months of the date of purchase (for unused stamps) or within 2 years for other claims. Attach the original stamp paper or e-stamp certificate, proof of non-use or cancellation, and an affidavit. Refund processing typically takes 2-6 months.

State-specific differences

Important: Rates shown are for sale deeds/conveyances of residential property. Rates may differ for commercial property, agricultural land, gift deeds, lease deeds, and other instrument types. Always verify the current rate on the state portal before making payment. Rates are subject to change with state budget announcements.

Frequently asked questions

What is the difference between stamp duty and registration charges?

Stamp duty is a tax levied by the state government on the execution of an instrument (document), payable under the Indian Stamp Act, 1899 or the applicable State Stamp Act. Registration charges are a separate fee paid to the Sub-Registrar's Office for recording the document in the public register under the Registration Act, 1908. Both must be paid for a valid property transfer. Stamp duty is typically 3-8% of the property value, while registration charges are usually 1% (subject to state-specific caps). A document that is properly stamped but not registered is not valid as evidence of title. A document that is registered but improperly stamped is also defective.

Can stamp duty be paid in instalments?

No, stamp duty must be paid in full before the document is executed and presented for registration. There is no provision for instalment payments of stamp duty under the Indian Stamp Act. Some states have experimented with concessional schemes that reduce the upfront burden (for example, reduced rates for affordable housing or for first-time homebuyers), but the concessional rate must still be paid in full at the time of execution.

Is stamp duty payable on an agreement to sell?

Yes, an agreement to sell is a separate stampable instrument with its own stamp duty rate, which is typically lower than the rate for a sale deed. In many states, when the sale deed is subsequently executed, the stamp duty paid on the agreement to sell is adjusted against the stamp duty on the sale deed, so you pay only the difference. However, the specific adjustment rules vary by state. In Maharashtra, stamp duty on the agreement to sell is the same as on the conveyance if possession is transferred at the agreement stage.

What happens if a property is purchased below circle rate?

For stamp duty purposes, the taxable value is always the higher of the agreement value or the circle rate value. Even if you agree to pay less than the circle rate, stamp duty will be calculated on the circle rate. Additionally, under Section 56(2)(x) of the Income Tax Act, 1961, if you purchase immovable property at a price more than Rs. 50,000 below the stamp duty value, the difference is taxable as income in the buyer's hands. Sellers may also face scrutiny under Section 50C, which deems the stamp duty value as the sale consideration for capital gains calculation if the actual sale price is lower.

Are there any stamp duty exemptions?

Yes, several exemptions and concessions exist, though they vary by state. Common exemptions include: transfers between spouses (some states charge nominal duty), transfers to the government or to charitable trusts, instruments executed by or in favour of armed forces personnel (in some states), and transfers under court orders for family settlement. Some states offer time-limited concessions for affordable housing, first-time homebuyers, or properties in specific development zones. Check your state's stamp duty schedule for current exemptions.

How do I verify whether an e-stamp certificate is genuine?

Visit the SHCIL verification portal at shcilestamp.com, navigate to "Verify e-Stamp Certificate," and enter the Unique Identification Number (UIN), the certificate number, and the stamp duty amount. The system will confirm whether the certificate is genuine and display the details recorded in the SHCIL database. You can also scan the QR code printed on the e-stamp certificate using any QR reader for instant verification. Always verify e-stamp certificates before accepting them in any transaction — this takes less than a minute and eliminates the risk of fraud.

This guide is part of Veritect's Legal Procedure Guides, a step-by-step reference for common Indian legal processes. Last updated: 2026-03-27. This content is for informational purposes and does not constitute legal advice.