Common questions on stamp duty and property — gift deeds, rent agreements, share transfers, TDS on property and circle rates — answered by a practising CA.
Stamp Duty & PropertyWhat is the circle rate (ready reckoner) and how does it affect stamp duty?Bottom line: Stamp duty is charged on the higher of your agreement value or the government circle rate. 1. Circle rate The state's minimum or guideline value for…Stamp Duty & PropertyDo women buyers get a stamp-duty concession?Bottom line: Several states charge women buyers 1 to 2% less stamp duty, but it varies by state. 1. Examples Delhi (about 2% lower), Rajasthan and Haryana (around…Stamp Duty & PropertyWhat is the difference between stamp duty and the registration fee?Bottom line: Stamp duty is a tax on the document; the registration fee is a separate charge to register it. 1. Stamp duty Levied under the Stamp Act…Stamp Duty & PropertyWhat is the stamp duty on a debenture or loan agreement?Bottom line: Debenture issue carries a uniform 0.005% duty, while loan-agreement duty is state-specific. 1. Debentures Issue is charged 0.005% (with no cap) across India since 2020; a…Stamp Duty & PropertyCan I claim house-purchase stamp duty as a tax deduction?Bottom line: Yes — stamp duty and registration charges on a house qualify under Section 80C, within the ₹1.5 lakh limit, in the year of payment. 1. What…Stamp Duty & PropertyWhat is the stamp duty on a gift deed, and are gifts to relatives exempt?Bottom line: Gift-deed stamp duty varies by state, but many states charge a nominal duty for gifts to close relatives — and such gifts are income-tax exempt. 1.…Stamp Duty & PropertyHow is stamp duty on a rent or leave-and-licence agreement calculated?Bottom line: It is state-specific, usually charged on the rent plus deposit over the term of the agreement. 1. The base Many states compute duty on the total…Stamp Duty & PropertyHow much stamp duty applies on a share transfer (SH-4)?Bottom line: A physical share transfer on Form SH-4 attracts 0.25% stamp duty; a demat transfer is charged 0.015%. 1. Physical transfer 0.25% of the consideration or market…Stamp Duty & PropertyWhat is the stamp duty on a partnership deed or LLP agreement?Bottom line: Both are state-specific and usually depend on the capital contribution. 1. Partnership deed Duty varies by state and by the capital brought in. 2. LLP agreement…Stamp Duty & PropertyHow does TDS on property purchase (Section 194-IA) work?Bottom line: The buyer deducts 1% TDS on a property of ₹50 lakh or more and deposits it in Form 26QB. 1. The rule 1% on the higher…