Understanding the Stamp Duty & Registration Charges for Buying a New Home - Home Loan Stories | Kotak Mahindra Bank

09 JUNE, 2021

 

Purchasing a home includes numerous charges apart from the cost of the house itself. You may not be familiar with many of these expenses, which can increase the overall ownership cost of your home. The most common and significant charges are stamp duty and registration charges, which you must pay while buying a property. The State government fixes these charges and thus, the rate can differ from region to region.

Below, you can check out more about stamp duty and registration charges and how you can pay these charges.

What Is Stamp Duty?

Stamp duty is the tax that State governments levy on transactions while transferring assets or properties. Some papers such as mortgage deeds, home loan agreements, etc. must be stamped to be legally valid. The stamp duty charges vary from one State to another and the fee is a set percentage of the property value.

What are Registration Charges?

Registration charges are a cost you must pay to have the property registered in your name. This charge can be a percentage of the total value of the property or the market value depending on where you purchase the property.

Methods for Stamp Duty and Registration Charge Payment

You can pay for stamp duty and registration charges in the following three ways:

  • Physical stamp papers
    Usually, this method is used to make payment by getting non-judicial stamp papers. You can purchase this from an authorised seller and print the terms of the agreement on the paper. But this method is time-consuming and in case of high stamp duty, you require more number of stamp papers. Thus, many individuals opt for other options for making stamp duty payment.
  • E-stamp
    E-stamping is the new mode of completing the stamping process online. The Stock Holding Corporation of India Limited (SHCIL) is the Central Record Keeping Agency for e-stamping in the country. But this method of paying stamp duty is only available in certain States of India. You can visit the official website of SHCIL to complete it from the comfort of your home.
  • Franking
    Franking is another convenient alternative to paper-based stamping where you get the documents stamped by the authorised agency. You can go to a franking centre or a bank to get the papers stamped, indicating you have paid the stamp duty charges. You may have to pay a fee for franking which is low when compared to stamp duty.


Property Registration Procedure

You’ll need to follow the below steps in order to register your property:

  • Property title verification
  • Property value estimation
  • Preparation of stamp papers
  • Sale deed
  • Stamp duty and registration charge payment
  • Visit sub-registrar for registration
  • Submit the documents
  • Post document verification, your registration will be complete.


Can you mention about procedure of registration

Ensure to check the stamp duty and property registration charges applicable in your region to avoid last-minute troubles. To avail a hassle-free home loan, get in contact with us at Kotak Mahindra Bank and fulfil that life goal of purchasing your dream home.

 

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.

 

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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.