When a transaction is made on the property, the Government levies a charge to help the buyer become legal owners of the property.
This charge is known as Stamp duty. As such, Stamp duty is an additional expense that might have high rates sometimes in India. To avoid paying these high rates, Indian property buyers attempt to avoid paying them at all. That is why a Stamp duty calculator can be useful for calculating the expense that needs to be paid off on the home loan.
ADVERTISEMENT
Here is all you need to know regarding Stamp duty for a home loan.
A Brief About Stamp Duty
Stamp duty is the tax home buyers in India must pay during a home purchase. This may be applicable for both residential and commercial property purchases. Leasehold and freehold properties may also come under this category. However, the Stamp duty rate may vary per one state or another.
A Stamp duty calculator may help you map out the amount you might have to pay for the same living in a specific state. So, if you do not have much prior information on Stamp duty regarding your state, this type of calculator can help provide exacting information. All you need to do is fill in your property value and the state name where you live. Then, the calculator will deliver the results accordingly.
How Are These Calculated?
Generally, the Stamp duty rate may vary from 3% to 10%, depending on the property value. Many other factors may influence the rate of your Stamp duty. This includes your gender, the state you live in, the type of property you have chosen and the amenities you may be availed of. However, there is also a certain registration charge you may have to pay off with your Stamp duty price. The Federal Government collects this. As such, the rate of registration is the same in each state. Generally, this rate is 1% of the total property market value.
For example- If you have bought a home worth Rs. 50 Lakhs in Kolkata, then you may have to pay 5% as Stamp duty. As such, the registration fees will be Rs 50,000.
Does Home Loan Cover Stamp Duty And Registration Charge?
The Stamp duty and registration fees must be taken care of by the property buyer. It is not a part of the home financing process. Once the sale agreement is signed, the Stamp duty may be paid before, on or after this. However, keep in mind that once your sale agreement occurs, it becomes prudent to pay off the Stamp duty at the earliest. Once you have paid the Stamp duty, you will also need to take care of the registration fees. This must be done within four months of the date of execution.
You must carry certain important documentation to prove yourself a potential fit as an Indian citizen to get the Stamp duty. Some of these documents may include a sale agreement contract, Khata certificate and Deed of sale.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
