Stamp Duty

Stamp duty is a tax levied by state governments in India on the execution of legal documents — including property sale agreements, loan agreements, share transfer forms, and investment instruments — making the document legally enforceable and admissible as evidence in courts. The stamp duty rate varies by state, document type, and transaction value. For real estate transactions — the most significant source of stamp duty revenue in India — stamp duty typically ranges from 4% to 8% of the property's circle rate or market value (whichever is higher), with additional registration charges of 0.5% to 2% for registering the sale deed. Stamp duty on securities transactions in India is levied under the Indian Stamp Act — applicable to share transfer instruments, debenture transfers, and certain OTC derivative instruments. For exchange-traded securities transactions on NSE and BSE, stamp duty is charged at standardised rates: 0.015% on equity delivery transactions, 0.003% on equity intraday transactions, 0.002% on futures contracts, and 0.003% on options contracts (applied to the premium value). Stamp duty is a non-refundable cost that forms part of the total transaction expense for property and securities transactions — for home buyers, stamp duty represents a significant upfront cost that can range from ₹3 lakh to ₹20 lakh or more on property transactions in major Indian cities. Several state governments have periodically reduced stamp duty rates to stimulate real estate demand during economic slowdowns.