Stamp Duty Charge - Things to Know - Home Loan Stories - Kotak Bank

There are many factors which need to be considered for home aspirants while opting for home loans. One of them is stamp duty and registration charges included in home loan. It is a government tax, which is levied on any kind of monetary transaction that takes place while completing your home purchase. It is paid as per the provisions of Indian Stamp Act, 1899. The Stamp Duty and Registration Charges are different for different states.

It is essential to understand that stamp duty should be paid in full and without any delay, failing which a penalty can be levied. A stamp duty on home loan is a legal instrument which has an evidentiary value (admissible in a court of law as evidence). There are a number of factors which determine your stamp duty charges. We have listed some of them:

  • Age of the Property: This plays a crucial role in determining the stamp duty charges you will be required to pay. Usually old buildings attract less stamp duty charges and new buildings attract a higher charge
  • Age of the Owner: The age of the owner also plays a role in determining the charge as discounts may be available on stamp duty charges for senior citizens
  • Gender of the Owner: Like senior citizens, women also get a discount on stamp duty charges if the property is registered in her name
  • Location: If your property is located in a municipal locality or an upscale urban area, be prepared to pay a higher stamp duty. If your property is located in Panchayat limits or outskirts of the town, you will land up paying less to get it stamped.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.