Tax on Property- Stamp duty

Tax rebate of 2 percent on registering property in the name of women

When there is a purchase, sale or transfer between two parties regarding an immovable property, then a tax determined by the government has to be paid. This is a charge over and above the cost of the property. This is called stamp duty. This fee depends on the nature of the documents. For example, it is calculated on the basis of sale agreement, gift deed, lease, power of attorney, conveyance deed, rent deed, etc. Gender, circle rate and market value affect the stamp duty.
In Madhya Pradesh, the Registration and Stamp Department collects this tax. It has total 4 regional offices in the state. One of these is in the capital Bhopal.

Stamp Duty in Madhya Pradesh

Gender Type Stamp Registration
Female Urban 9.5% 01%
Male Urban 9.5% 03 %
Female Rural 6.5% 01%

Stamp duty calculation:

Stamp duty is calculated on the basis of value of the property whichever is higher from the market price value and the sale price value of the property.

Factors Affecting Stamp Duty Calculation

Same stamp duty for men and women:

In order to increase the ownership of property in the name of women, the stamp duty is kept low for them. Stamp duty is same for both men and women in MP. There is a difference in the registration fee which is 1% for women and 3% for men.

Stamp duty also depends on the circle rate:

Stamp duty in a state depends on the circle rate of its different state areas. If the circle rate is high in an area, then it is certain that the market price of the property there will also be high. Accordingly, the stamp duty will also be higher there.

Stamp duty according to location:

The location of the property is also one of the factors affecting the stamp duty. There is a difference between the circle rate and the market rate in urban and rural areas. According to that location, stamp duty is applicable on the property.