Glossary · Money & tax
What is Stamp duty?
Also called: Stamp duty and registration charges, e-Stamp paper, Registration fee
Stamp duty is a state tax on documents such as sale deeds, gift deeds and powers of attorney; without it, a document can’t be registered or relied on in court.
Stamp duty is set by each state under its stamp law (based on the Indian Stamp Act, 1899), so rates differ widely. On a sale it is a percentage of the higher of the price and the circle-rate value; many states charge less when the buyer is a woman, and much less on gifts or releases within close family.
A separate registration fee — often about 1% of the value, sometimes capped — is paid to the sub-registrar when the document is registered. Today stamp duty is usually paid through e-stamp paper or online challans rather than physical stamp paper.
A document that is under-stamped can be impounded and a penalty charged before it is accepted in court. Documents signed abroad, such as a power of attorney, usually have to be stamped in India within a set time after they arrive.
Why it matters if you live abroad
Stamp duty is often the single biggest cost of moving family land by gift, release or partition — the right route can cost far less, so compare options with a local lawyer.
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