18 FEBRUARY, 2022

A stamp duty calculator can help you determine the amount you need to pay towards your stamp duty on purchasing the house. It can help create a tentative budget where you include all the expenses you need to incur for the house purchase. 

 

Here is an ultimate guide on stamp duty calculators to help you compute your stamp duty effortlessly. First, let us find out what stamp duty is and why is it important?

 

What is stamp duty?

Stamp duty is an indirect tax that the state government imposes for monetary transaction while buying property. You need to mandatorily pay stamp duty on your property purchase. Your property purchase is not validated and the ownership of the property is not transferred in your name until you pay the stamp duty. Typically, the stamp duty is between 5-7% of the property’s value, but it varies from state to state. Many states charge a lower stamp duty rate for women. Along with the stamp duty, you also need to pay the registration charges at the registrar office. The registration charges are usually 1% of the property’s value and are uniform all over the country. 

 

What is a stamp duty calculator?

A stamp duty calculator is an online tool that helps you calculate your stamp duty obligation on your property's purchase. With a stamp duty calculator, you can compute the amount of stamp duty you need to pay towards your house. The stamp duty calculator processes the property value and rate of duty to calculate the duty.

 

How to use a stamp duty calculator?

You can use the stamp duty calculator with the following steps:

  • Click on the stamp duty calculator page
  • Enter the value of the house property you have purchased
  • Enter the name of the state from the drop-down menu
  • Select your ownership
  • Get the stamp duty amount

 

The stamp duty amount is based on the property’s value, which is determined after considering the location, property value.

 

Why is the stamp duty calculator useful?

Stamp duty forms a substantial cost of the entire amount you pay for purchasing a house. The more expensive the house, the more is the stamp duty. A stamp duty calculator is important as it helps you determine the total amount you would need to buy your dream house. With the stamp duty calculator, you can find the amount you need over and above the cost of the house. Stamp duty calculator will help you determine your affordability for the house purchase and will help you avail the right amount when you apply for home loan.

 

Stamp duty is an out of pocket expense and is not included in the home loan amount. Therefore, with a stamp duty calculator, you can calculate the stamp duty amount and then check if you will be able to afford the house after paying the upfront amount for the down payment and stamp duty.

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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.