What is stamp duty?
Reviewed by Ranga & Company
Stamp duty: Stamp duty is a state tax paid on documents such as property sale deeds, gift deeds and leases. In Rajasthan, it is charged on the higher of the agreed price and the government's DLC rate for the property.
At a glance
- Levied by
- The state government (Rajasthan Stamp Act)
- Value used
- Higher of agreed price and DLC (District Level Committee) rate
- Paid via
- E-stamping or e-GRAS, before registration
- Income tax link
- Section 50C for sellers; 80C deduction for home buyers (old regime)
Stamp duty and income tax
| Who | Effect |
|---|---|
| Seller | If the DLC value exceeds 110% of the price, the DLC value is treated as the sale price for capital gains (section 50C) |
| Buyer | If the DLC value exceeds 110% of the price, the difference can be taxed as the buyer's income (section 56(2)(x)) |
| Home buyer | Stamp duty and registration charges count under 80C (old regime) in the year paid |
| Future sale | Stamp duty paid is part of the cost of acquisition |
Paying it in Rajasthan
- Check the DLC rate for the property's area and category
- Work out duty and registration fee at the current notified rates
- Pay through e-stamping or e-GRAS
- Register the deed at the sub-registrar's office
Rates and concessions (for example for women buyers) change by state notification; confirm the current rate before you sign.
Common mistakes
- Agreeing a price well below the DLC rate without considering 50C and 56(2)(x)
- Forgetting to claim stamp duty under 80C in the year of purchase
Frequently asked questions
What is the DLC rate in Rajasthan?
The DLC rate is the minimum property value fixed by the District Level Committee for each area. Stamp duty is charged on the higher of the DLC value and the agreed price.
Can I claim a tax deduction for stamp duty?
Yes, under section 80C in the old tax regime, within the ₹1.5 lakh limit, for a residential house in the year you pay it.
What if I sell property below the DLC rate?
If the DLC value is more than 110% of the price, it is treated as the sale price for capital gains, and the buyer may be taxed on the difference.
Related terms
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