Budget 2024 Pushes States For Lower Stamp Duty Rates For Women To Support Female Homeownership

In a move to empower women and encourage their property ownership, Finance Minister Nirmala Sitharaman announced during the Budget 2024 that states should consider lowering stamp duty rates for property purchases by women. While some states have a flat rate of stamp duty which is calculated on the value of the property under registration, others follow rates working as per the slab mechanism. During the latter, the rates increase with the value of the property being purchased.

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“Finance Minister Nirmala Sitharaman’s announcement about reducing stamp duty rates for property purchases by women will empower more women to invest in property, boosting their financial independence and promoting gender equity. Lower stamp duty rates make property ownership more affordable, especially for middle-income women, and are likely to drive up demand and increase transactions,” says Dr Sachin Chopda, Managing Director of Pushpam Group.

Chopda adds, “This policy could also see more joint property registrations between spouses, enhancing women's financial security and promoting shared ownership. Developers might respond with women-focused marketing and financial packages, while banks could offer better loan terms for women.”

Concessional Rates on Stamp Duty for Women Across States

Several states in India already offer concessional stamp duty rates and discounts for women to encourage female property ownership. Here is a look at some of the states that have implemented such measures:

2% Concessional Stamp Duty in Delhi & Haryana

Women homebuyers in Delhi get a 2 per cent reduction in stamp duty. While men pay 6 per cent stamp duty, women pay only 4 per cent.

In Haryana, women benefit from a 2 per cent reduction in stamp duty. They pay 5 per cent instead of the usual 7 per cent.

Himachal Pradesh: If the property is registered in the name of a woman, the authorities collect 4 per cent stamp duty in Himachal as compared to 6 per cent for men. If the owners are both a man and a woman jointly, then the stamp duty is 5 per cent.

1% Concessional Stamp Duty in the following states:

In Rajasthan and Punjab, the stamp duty rate for women is slashed by 1 per cent, with a current rate of 5 per cent compared to the standard 6 per cent across both the state.

Uttar Pradesh offers a 1 per cent concession on stamp duty for women, making the rate 6 per cent compared to 7 per cent for men.

Maharashtra also provides a 1 per cent concession in stamp duty for women, with the rate being 4 per cent for women and 5 per cent for men.

How Does Stamp Duty Concession Work?

To understand concessions, let’s first tell you:

What is Stamp duty? It is a tax imposed on legal documents, typically levied on the transfer of assets such as property. The amount of stamp duty is usually a percentage of the transaction value made by the buyer. By offering concessional rates for women, states aim to lower the financial barriers to property ownership for women.

When Can You Avail Concessions on Stamp Duty?

To avail of the concessional rates, the property must be registered in the name of a woman.

Please note: In the case of property registration, stamp duty is charged on the transaction value or circle rate (minimum price of the property, as per the government standard), whichever is higher.