Stamp Duty

Tax Glossary Definition

Stamp Duty

Tax on Legal Documentation of Property Transfers: Stamp duty is a tax imposed by the government on legal documents that validate the transfer of property or other financial agreements. The amount paid as stamp duty becomes part of the property’s acquisition cost and is considered when calculating capital gains during its sale.

Example: A buyer pays ₹2,00,000 as stamp duty on the purchase of a residential flat.

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