In general, stamp duty is a government-imposed tax on real estate transactions. Simply having physical possession of a real estate property, such as a house, is insufficient. You must also have proof of legal ownership of the property, for which stamp duty and registration fees must be paid.The state government is responsible for levying and collecting stamp duty, which differs from state to state as per the constitutional framework. Furthermore, stamp duty is calculated based on the property's valuation, which is determined by characteristics such as the property's kind (residential or commercial), age, and location. Because it increases the overall property cost, it is critical to understand and integrate it into your financial planning architecture when purchasing a home.