In short
Plan for 7–12% in unavoidable transaction charges — stamp duty, registration, brokerage and legal fees — rising to roughly 12–17% if the home is under construction and attracts 5% GST. Add society corpus and basic interiors and the all-in figure is commonly 15–22% above the quoted price. On a ₹60 lakh ready-to-move flat in Maharashtra registered in a man's name, stamp duty and registration come to ₹3.3 lakh; with 1% brokerage, legal fees, ₹2 lakh of society charges and ₹5 lakh of interiors, the real number is about ₹71.5 lakh. None of that extra is funded by your home loan, so the cash you need is far more than the 20% down payment everyone talks about.
Everything you actually pay
| Stamp duty | 4% – 8% of value, state-wise. Several states charge women 1–2% less. |
|---|---|
| Registration fee | 0.5% – 4%. Maharashtra caps it at ₹30,000, Haryana at ₹50,000, Tamil Nadu charges a full 4%. |
| GST | Only on under-construction: 1% affordable, 5% other, no input tax credit. Zero on completed homes with an occupancy certificate. |
| Brokerage | Up to 1% of value, plus GST on the brokerage. Zero if you buy direct from the builder. |
| Legal + technical | ₹10,000 – ₹25,000. The bank does its own too and charges you for it. |
| Loan processing fee | 0.25% – 1% of the loan. Frequently negotiable — ask. |
| MODT / mortgage charges | 0.1% – 0.5% of the loan in states that levy it (Maharashtra, Telangana and others). |
| Society corpus, club, parking | ₹1 lakh – ₹5 lakh on a new project. Builders often reveal this only at the final demand letter. |
| Interiors and shifting | ₹3 lakh – ₹15 lakh. The most under-budgeted line by far. |
The circle rate trap
Every state fixes a minimum official value for each locality — called the circle rate, ready reckoner rate, guidance value or collector rate depending on where you live. Stamp duty is charged on the higher of your agreement value and that rate.
So if the circle rate says ₹65 lakh and you negotiate the flat down to ₹58 lakh, you still pay stamp duty on ₹65 lakh. Worse, under Section 56(2)(x) of the Income Tax Act the ₹7 lakh difference can be added to your income and taxed. Look up the circle rate for your locality on your state registration department's website before you agree on a price.
Where you can genuinely save
- Register in a woman's name where the state gives a concession — on a ₹60 lakh flat in Delhi that is ₹1.2 lakh saved. Understand that she becomes a legal co-owner.
- Buy ready-to-move and the 5% GST disappears entirely. On ₹60 lakh that is ₹3 lakh.
- Negotiate the processing fee. Banks waive or halve it far more often than people expect, especially at the end of a quarter.
- Skip the bundled insurance. Lenders often push a single-premium loan-protection policy added to the loan. A plain term plan for the same cover is usually far cheaper. It is not compulsory — ask for it in writing if they claim otherwise.
- Go direct where you can. On a resale flat, brokerage is 1% from each side and is negotiable.
Frequently asked questions
How much extra do I pay above the flat price in India?
Budget 7% to 12% of the price in unavoidable transaction charges, and 15% to 22% all-in. Stamp duty is typically 4–8% of the value depending on the state, registration another 0.5–4%, brokerage up to 1% plus GST on it, and legal, technical and loan processing fees ₹25,000–₹60,000. Under-construction homes add 1% or 5% GST on top. Society corpus, club membership and parking commonly add ₹1–5 lakh, and interiors ₹3–15 lakh.
Is stamp duty included in a home loan?
No. Banks lend against the property value only, up to the RBI limit of 75–90% depending on the loan size, and stamp duty and registration are excluded from that value. You must pay them from your own funds. A few lenders offer a separate top-up, but it is more expensive.
Do women pay less stamp duty in India?
In several states, yes. Delhi charges 4% for women against 6% for men, Haryana 5% against 7% in urban areas, and Uttar Pradesh, Punjab and Rajasthan also give a 1–2% concession; Maharashtra gives women a 1% reduction. Karnataka, Tamil Nadu, Gujarat and Kerala charge the same rate regardless of gender. Registering in a woman's name can save lakhs, but it also makes her a legal co-owner, so decide with that in mind.
Is GST payable on a ready-to-move flat?
No. GST applies only to under-construction property — 1% for affordable housing and 5% for other residential, both without input tax credit. Once the builder has the completion or occupancy certificate, the sale is treated as an immovable property transfer and no GST is charged. This is one reason ready-to-move flats often work out cheaper than the headline difference suggests.
Is stamp duty calculated on the agreement value or the circle rate?
On whichever is higher. Every state publishes a circle rate (also called ready reckoner rate, guidance value or collector rate) for each locality. If you buy below that rate, stamp duty is still charged on the circle rate, and the difference can also be taxed as income in your hands. Always check your locality's circle rate before you sign.
Last reviewed: September 2026 · Stamp duty and registration rates shown are indicative and change by state notification, city and property type. This is an educational estimate, not legal, tax or property advice. Confirm every figure with your sub-registrar office, your lender and a qualified professional before you pay. See Disclaimer.
