The number you negotiate with the builder or seller is only the starting point. Depending on the state and the type of property, taxes and other charges can add a significant amount, often 10–15% or more, to the base price. Plan for them before you finalise your budget or loan amount.
1. Stamp duty
Stamp duty is a state tax paid when the sale deed (or agreement) is registered. Rates are set by each state and differ widely. Many states fall somewhere between roughly 4% and 8% of the property value, and several states charge less when the buyer is a woman.
Delhi is a common example: about 6% for men, 4% for women and 5% for joint ownership by a man and a woman.
Stamp duty is calculated on the higher of the agreement value and the government's guidance value for that area (called the circle rate, ready reckoner rate or guidance value, depending on the state). Always check the current rate on your state registration department's website.
2. Registration fee
On top of stamp duty, states charge a registration fee, often around 1% of the property value. Some states cap it: Maharashtra, for example, caps the registration fee at ₹30,000 for most property sales.
3. GST (only for under-construction property)
| Property type | GST |
|---|---|
| Under-construction residential (non-affordable) | 5%, without input tax credit |
| Under-construction affordable housing | 1%, without input tax credit |
| Ready-to-move property with an Occupancy Certificate | No GST |
| Resale property | No GST |
"Affordable housing" for GST purposes broadly means a carpet area of up to 60 sq m in metro cities or 90 sq m elsewhere, with a value of up to ₹45 lakh. GST rules change from time to time, so confirm the current position before booking.
4. TDS on the purchase
If the property costs ₹50 lakh or more, the buyer must deduct 1% TDS from the payment to the seller and deposit it with the income tax department. For years this was known as Section 194-IA. With the new Income-tax Act, 2025 in effect from April 2026, check the current section and form on the income tax portal. TDS isn't an extra cost (it's part of the price), but forgetting it can lead to interest and penalties for the buyer.
5. The charges nobody mentions
Builders' cost sheets and resale deals often include:
- Preferential location charges (PLC): for a higher floor, a park view or a corner unit.
- Car parking: covered or stilt parking is often priced separately.
- Club membership and amenity charges.
- Maintenance deposit: commonly 12–24 months of maintenance paid in advance at possession, plus a corpus or sinking fund.
- Utility connection charges: electricity meter, water and gas connections.
- Legal and documentation fees: for drafting, verification and registration.
- Home loan costs: processing fee, legal and technical valuation charges, and sometimes insurance that is pushed with the loan (it is optional).
- For resale: brokerage (often 1–2%) and society transfer charges.
- Interiors and moving in: modular kitchen, wardrobes, lights and fans, which aren't always included.
A worked example
An under-construction flat with a base price of ₹80 lakh, in a state with 6% stamp duty and 1% registration, bought with a ₹64 lakh home loan:
| Item | Amount |
|---|---|
| Base price | ₹80,00,000 |
| GST at 5% | ₹4,00,000 |
| Stamp duty at 6% | ₹4,80,000 |
| Registration at 1% | ₹80,000 |
| Maintenance deposit (illustrative) | ₹1,20,000 |
| Legal and documentation (illustrative) | ₹25,000 |
| Loan processing fee at 0.5% (illustrative) | ₹32,000 |
| Total outlay | ₹91,37,000 |
That is about ₹11.4 lakh, or roughly 14%, above the base price, before parking, PLC or interiors. Note that banks usually lend against the property value, not these extra costs, so most of this comes out of your own pocket.
Ask the builder for an all-inclusive cost sheet for your exact unit that lists every charge and states which taxes are extra. Compare projects on that number, not the base price.
Bottom line
Budget for the full cost, not the headline price. Get the state's current stamp duty and registration rates, an all-inclusive cost sheet, and a clear list of possession-time charges in writing. Then work out what you can borrow with our guide to home loan eligibility.