What is Stamp Duty? How It's Calculated

Why Stamp Duty Exists

Stamp duty serves as legal proof that you have paid the government tax on your property transaction. Without paying stamp duty, your sale deed cannot be registered, and you have no legal ownership of the property. It is one of the largest revenue sources for state governments from real estate transactions.

How Stamp Duty Is Calculated

Stamp duty is calculated on the higher of two values:

• Agreement value: The actual price you are paying for the property
• Circle rate (guidance value): The government's minimum property value for that area

For new luxury projects like Fab Luxe Residences, the agreement value is typically higher than the circle rate, so stamp duty is charged on the agreement value. For a property valued at Price On Requestore in UP, a male buyer would pay ₹20.72 Lakh (7%) while a female buyer pays ₹17.76 Lakh (6%).

Stamp Duty vs Registration Charges

Stamp duty and registration charges are separate fees. Stamp duty is the tax on the transaction, while registration charges (1% in UP) are the fee for recording the transaction in government records. Both are paid together at the time of property registration.

Tax Benefits on Stamp Duty

Under Section 80C of the Income Tax Act, stamp duty and registration charges paid for a residential property are eligible for tax deduction up to ₹1.5 Lakh per financial year. This deduction is available only in the year the charges are paid.

For a detailed guide on current rates and how to pay online in UP, read our complete stamp duty guide for 2026.