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24 MARCH, 2022
There are many different costs that you need to consider when you plan to buy a home, like the basic cost of the property, GST, brokerage, interiors, maintenance, etc. While you can negotiate on some of these costs, stamp duty is one fixed cost and has to be paid upfront while buying your house.
Knowing your stamp duty charges right at the time of house hunting and their impact on the overall affordability of the property can help you prepare a budget and decide on the additional funds you need to arrange for the house purchase above the home loan. Even a small change in the stamp duty can translate to better interiors or added comfort. But is calculating your stamp duty that easy? Sure it is, thanks to a stamp duty calculator.
What Is Stamp Duty?
Stamp duty is an indirect tax that you need to pay for the purchase and sale of properties. Stamp duty is levied by the state government and varies from state to state. It is mandatory to pay the stamp duty charges for property transfer. Without the payment of stamp duty charges, your house purchase is not validated. Unless you pay the stamp duty, the property is not transferred in your name. Typically, states levy 5-7% of the property value as stamp duty. It also varies based on gender, where stamp duty is lower for females in many states. Similar to stamp duty, you also need to pay 1% of the property value as registration charges.
What Is a Stamp Duty Calculator?
A stamp duty calculator is an online computation tool that helps you determine your stamp duty obligation before you purchase your property. While the stamp duty percentage looks insignificant, it often amounts to lakhs of rupees depending on the property value. Therefore, using a stamp duty calculator can help you know the exact amount of stamp duty charges. You can then know the amount you need to arrange for the overall property purchase before applying for the home loan. To use the stamp duty calculator, you must have the following variables - agreement cost of the property, gender of the owner, and the state you are purchasing the property in.
You can use a stamp duty calculator with the following steps:
With a stamp duty calculator, you can know the amount you need to set aside for the payment of stamp duty. It is an upfront value and not included in the home loan value. Using this calculator, you can determine the amount of funds you need over and above the home loan to pay for the stamp duty.
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