Figures here come from our research and have not yet been verified by a legal reviewer. Look for the labels Research-established Assumption Unconfirmed. Not legal advice.
What is stamp duty?
Stamp duty is a tax the State levies on certain legal documents (called instruments). The Indian Stamp Act, 1899 lists the instruments and the duty on each in a schedule; in Andhra Pradesh this is Schedule I-A. A sale deed is a chargeable instrument and falls under Article 47-A (Sale).
Research-established The sale-deed duty is charged on the higher of the consideration (the price stated in the deed) and the market value of the property. The research found this "whichever is higher" basis in the text of Article 47-A as published by the registration department.
How the rate has changed
The percentage is not written into the Act. The Government sets it by notification (an official order published in the Gazette) under section 9(1)(a) of the Stamp Act. The Government Orders (G.O.s) the research found trace the rate like this:
- 30 July 2010G.O.Ms.No.719
Stamp duty on sale deeds reduced from 7%/6% to 5%.
- 30 March 2013 (from 1 April 2013)G.O.Ms.No.162
Reduced further, from 5% to 4%.
- 26 November 2014G.O.Ms.No.394
Rescinded G.O.Ms.No.162 and restored the rate in G.O.Ms.No.719 — 5% — "with immediate effect".
Stamp duty and market value
Consideration is what the buyer agrees to pay, as written in the deed. Market value is the value the authorities place on the property. The two can differ — for example when the price in the deed is lower than the official value of the land. Because Article 47-A takes the higher of the two, declaring a lower price does not lower the duty below what the market value would produce.
Research-established Market value is not a figure you simply enter. It is set under section 47-A of the Stamp Act and the A.P. Revision of Market Value Guidelines Rules, 1998. The Sub-Registrar gives a market-value slip for the property. If the parties do not agree with it, the registration department's own FAQ explains that the document is referred to the District Registrar (Collector) for determination, with part of the deficit duty deposited meanwhile. The official guideline values for a locality are published by the department.
Because Article 47-A takes the higher of consideration and market value, declaring a lower price does not lower the duty below what the market value would produce.