7 November 202612 min read

Stamp Duty on Property in India: A Guide for UK Buyers

What stamp duty and registration cost when you buy property in India, how state rates differ, and how an Indian purchase affects UK stamp duty on a later UK home.

Buyer signing an Indian property sale deed

There is no single Indian stamp duty rate. Each state sets its own, and the duty is charged on the sale document, normally on the higher of the price you agree and the state's official valuation. Registration is a separate charge on top. For a UK buyer there is a second question: whether owning property in India changes the Stamp Duty Land Tax (SDLT) you pay on a later purchase in England or Northern Ireland. It can. This guide covers both sides.

TL;DR

Indian stamp duty is set by each state, so the percentage depends on where the property is, its value, its type and its use. Delhi, for example, charges 6% for a male buyer and 4% for a female buyer.
The duty is usually calculated on the higher of the agreed price and the official circle rate (the state's minimum valuation for a locality). Registration is charged separately.
Declaring a lower value than the official benchmark is not a safe saving. Underpaid duty can be pursued after registration, and an insufficiently stamped document can be impounded.
Property you own in India can count towards the higher SDLT rates on a later England or Northern Ireland purchase. A non-UK resident also pays a further 2% surcharge.
Confirm the exact figure for the specific property with the relevant state authority before you pay a deposit.

What stamp duty means in India

Indian stamp duty is a tax on the legal instrument, such as the sale deed, not on the person. A state authority assesses the instrument against a valuation benchmark, often called a Stamp Duty Ready Reckoner in some states, and the buyer normally bears the cost in practice. Registration charges are a different item: they are paid to register the ownership document under the Registration Act 1908, and the same source notes that registration should be completed within four months of execution.

For a UK buyer used to a single SDLT calculation at completion, the Indian position has more moving parts. You deal with the stamp duty, the registration fee, possibly local body taxes, and in many purchases a tax deducted at source (TDS) on the payment to the seller. We cover that last item in our guide to TDS on property purchase in India.

Why rates differ from state to state

Stamp duty and registration fees are state matters. States set their own rates, and stamp duty and registration fees together made up 11.7% of the own tax revenues of Indian states and Union territories in 2023-24, according to a Reserve Bank of India (RBI) publication reported by Mint. That revenue importance is one reason states change rates, offer concessions or revise valuations at their own pace.

The amount payable also depends on the property itself. Property value, type, location, number of floors and whether the use is residential or commercial all affect the figure. An independent UK professional guide to global real estate states that Indian stamp duty commonly ranges from 1% to 6% depending on value, with local body taxes and other statutory charges possibly applying on top.

Factors influencing Indian stamp duty calculation

Treat that range as orientation, not a quote. A buyer who budgets from a headline percentage found online risks being wrong by thousands of pounds, because the percentage is only one of the inputs.

A worked reference: Delhi

Delhi's revenue department publishes a clear schedule. Sale or conveyance stamp duty is 6% for a male buyer and 4% for a female buyer, calculated on the consideration or the applicable circle rate, whichever is higher. Registration is 1% on the higher amount, plus a ₹100 pasting fee. The rupee symbol (₹) denotes the Indian rupee.

An illustration with round numbers, not a quote for any property: take a Delhi flat agreed at ₹1,00,00,000 (ten million rupees, written 1 crore in India) where the circle rate value is also ₹1,00,00,000.

Item	Rate	Amount
Stamp duty, male buyer	6%	₹6,00,000
Stamp duty, female buyer	4%	₹4,00,000
Registration fee	1%	₹1,00,000 plus ₹100

If the circle rate value were ₹1,20,00,000 instead, each percentage would apply to that higher figure. Other states use different rates and different rules, so do not carry these numbers to a property in Mumbai, Bengaluru or Chennai.

How the value base is set

The base matters as much as the rate. In Delhi the higher of the agreed price and the circle rate is used, and the same principle runs through most states in some form. If you negotiate a good price below the official benchmark, you may still pay duty as though you had paid the benchmark.

When you shortlist a property, ask for three figures in writing:

The agreed consideration in the draft sale deed.
The official benchmark value for that locality, property type and floor.
The stamp duty and registration charge calculated on whichever is higher.

Compare your own calculation with the state's official online valuation tool where one exists. Many state stamp and registration departments publish one.

Paying, stamping and registering the deed

Timing is a legal point, not a formality. The Karnataka Stamp Act, for example, requires chargeable instruments executed in the state to be stamped before or at the time of execution, unless an express exception applies. Other states have their own Stamp Acts with their own wording, so ask the lawyer acting for you to confirm the rule in the state concerned.

In practice the sequence is:

Agree the price and conditions in an agreement to sell.
Verify title and approvals before paying anything beyond a modest, refundable booking amount.
Calculate and pay stamp duty (increasingly through e-stamping) and prepare the sale deed.
Execute the deed and register it with the sub-registrar, within the statutory window.

The difference between an agreement and a registered deed is central. Our article on why only a registered deed transfers legal title explains it from a UK buyer's point of view, using the familiar TR1 (the form that transfers registered title in England and Wales) as the comparison.

What happens if duty is underpaid

Undervaluation is the most common temptation and the least reliable saving. In Delhi, sub-registrars were instructed to scrutinise declared values below circle rates, let the parties amend and pay the shortfall, and otherwise forward the registered instrument to the Collector of Stamps for determination and recovery under section 47-A.

There is also a evidential consequence. An authority may refuse to accept an insufficiently stamped document as evidence or impound it, and someone who wants to use it in court may pay the duty but risk a penalty of up to ten times the duty payable. For an overseas owner who may later need to sell, mortgage or defend title from another country, a document that is questioned years later is a real cost.

Who can buy, and what that means for the duty

Stamp duty is only one gate. The RBI states that a Non-Resident Indian (NRI) can buy any immovable property in India other than agricultural land, plantation property or a farm house. The same guidance distinguishes NRIs, Persons of Indian Origin (PIOs) and foreign nationals: foreign nationals of non-Indian origin who live outside India are generally not permitted to acquire property except by inheritance. It also states that such acquisitions remain subject to applicable Indian tax laws.

So, for a UK citizen with no Indian heritage, the first step is not a duty calculation but confirming eligibility. For NRIs and PIOs, agricultural land is excluded, which means the agricultural stamp duty question usually does not arise for them. The mechanics of paying from the UK are covered in our piece on remittance checks and the UK surcharge. If you plan to fund the purchase with borrowing, it helps to understand financing property abroad and how lenders treat foreign assets.

Does UK stamp duty apply to a property in India?

No UK SDLT is charged on buying a property in India: SDLT applies to land in England and Northern Ireland (Scotland and Wales have their own taxes). But the Indian purchase can change what you pay on a later UK purchase.

The higher rates for additional dwellings

HMRC (His Majesty's Revenue and Customs) applies the higher SDLT rates when a purchase will not be the only residential property worth £40,000 or more that you own anywhere in the world, unless an exception applies. A flat in India you hold, or part own, can therefore count. From 1 April 2025 the higher rates start at 5% on the first £125,000 and rise to 17% above £1.5 million. HMRC's own example shows a £300,000 purchase attracting £20,000 under the higher rates.

The usual exception is replacing your main home: if you sell your previous main residence and buy another, the higher rates generally do not apply. But if you keep your UK home and add an Indian one, or buy a UK home while holding an Indian one, the test needs a careful look before exchange.

The 2% non-resident surcharge

If you are not UK resident for SDLT purposes when you buy, a further surcharge applies. HMRC states that the 2% surcharge applies on top of all other residential rates, including the higher rates for additional dwellings, even if you intend to live in the property. A UK national who has lived in India for several years and is buying a UK home on return can fall into this category, so the residence test should be checked with a UK tax adviser or conveyancer before you commit.

Situation	Likely SDLT effect on an England or Northern Ireland purchase
UK resident, owns no other home worldwide	Standard residential rates
UK resident, keeps UK home and owns Indian property worth £40,000 or more	Higher rates for additional dwellings may apply
UK resident, sells main home, owns Indian property	Replacement-of-main-residence rules need checking
Non-UK resident at the time of purchase	2% surcharge on top of the rate that otherwise applies

This is a summary of the tests, not advice on your facts. The deciding details, such as the value of your share, dates of sale and residence days, are specific to you.

Checklist: establishing the exact Indian cost

Before you pay a deposit on an Indian property, collect these items:

The state and locality, and the stamp duty schedule that applies to your buyer category (some states differentiate by gender, age or property type).
The official valuation benchmark for the exact address, floor and property type.
The draft sale deed showing the consideration, and the figure on which duty will be calculated.
The registration fee and any pasting, e-stamping or service charges.
Whether TDS applies to the payment, and who deposits it.
Any local body or municipal taxes and unpaid dues attached to the property.
The property's status: completed, under construction or resale, because this can change which taxes apply.
Your own eligibility under RBI rules, and the route for sending funds from the UK.

Then add the cost of exiting. A buyer who stamps and registers for ₹1 crore at 7% total cost needs the price to rise well beyond that before a sale shows a gain. Our India rental yield calculator lets you set purchase costs, management, vacancy and tax against the rent and see what is left.

Perspective

In our reviews of cross-border purchases, the stamp duty line is rarely the most expensive problem. It is the one most often misunderstood, because buyers take a percentage from a website and treat it as final. The real cost depends on the state, the value base, the buyer category and the legal status of the property.
What we do is put the duty in the context of the whole decision. Is the seller entitled to sell? Do the approvals match what has been built? Does the deed describe what you are actually paying for? Across more than 380 property decisions we have reviewed, one in three reviews identified a significant deal-changing issue. A stamp duty miscalculation is seldom the headline, but it is often found alongside one.
Our approach is independent and buyer-side. We are not paid by developers or agents, and the structured decision file we prepare sets out the evidence, the costs and what remains unverified before you commit capital. For a UK buyer, that means one document covering Indian duty and registration costs, ownership checks and the UK tax consequences you need to raise with your own advisers.
Neerraj

Get the numbers checked before you pay

If you have shortlisted a property in India, our India property due diligence service reviews the title, developer and approvals, and sets out the stamp duty, registration and ongoing obligations in one evidence-based decision file. It is delivered before purchase, during the transaction or after completion, depending on where you are.

To discuss your property, start from our main page for buyer-side due diligence.

FAQ

How much is stamp duty on property in India?

It depends on the state, the value, the property type and the buyer. Delhi charges 6% for a male buyer and 4% for a female buyer, plus 1% registration, while a UK professional guide describes a general range of 1% to 6% across India. Always confirm the figure with the state authority for the exact property.

Do I pay UK stamp duty if I buy a property in India?

No SDLT is charged on the Indian purchase itself. However, owning property worth £40,000 or more anywhere in the world can trigger the higher SDLT rates on a later England or Northern Ireland purchase, and a non-UK resident pays a further 2% surcharge.

Is there stamp duty on agricultural land in India?

States tax agricultural land under their own rules, and rates differ. For most overseas buyers it is moot, because RBI rules do not allow NRIs or PIOs to purchase agricultural land, plantation property or a farm house, and foreign nationals of non-Indian origin are generally barred from buying property at all.

Is stamp duty the same as registration fees in India?

No. Stamp duty is a tax on the instrument, while the registration fee is paid to register the document under the Registration Act 1908. Both are usually calculated on the higher of the price and the official value, and you pay both.