How is Stamp Duty Calculated in Madhya Pradesh?

In Madhya Pradesh, stamp duty is a crucial part of property transactions and is determined based on either the property’s market value or the transaction value, whichever is higher. Understanding how stamp duty is calculated is essential for budgeting during a property purchase. You may use the Stamp Duty Calculator. Here are the key components:

1. Rate of Stamp Duty:

• Residential Properties: 7.5% of the property value.
• Commercial Properties: 8% of the property value.
• Agricultural Land: 5% of the property value.
• Gift Deed to Blood Relatives: 1% of property value (with an upper limit of ₹1,000)
• Gift Deed to Others: 5%

Note: There is a minor concession for female buyers for residential properties. Stamp duty for female sole ownership is 7%, compared to 7.5% for males.

These rates reflect the different purposes of the properties and their associated values, with commercial properties typically attracting a higher rate due to their potential income generation. Please note, this is just an estimate, and the actual duty may vary.

2. Additional Charges:

In addition to stamp duty, buyers may incur extra costs in the form of registration fees, which are usually around 1% of the property value. This fee is for the legal registration of the property transfer and is important for ensuring that the transaction is formally recognised.

3. Calculation Example:

To illustrate how stamp duty is calculated, consider a residential property valued at ₹50 lakhs. The calculation would be as follows:

Stamp Duty=Market Value x Stamp Duty Rate=₹50,00,000×7.5% = ₹3,75,000

In this example, the stamp duty payable would be ₹3,75,000, showcasing the financial commitment involved in purchasing property.