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14 DECEMBER, 2021
You might know that once you have purchased the property you need to pay the stamp duty and registration charges to validate the purchase. The cost of stamp duty forms a significant addition to the overall purchase price. Therefore, you must be aware how much stamp duty you need to pay before buying the property to ensure it is well within your budget. Stamp duty is calculated on the market value of the property. Knowing your stamp duty cost can help you plan your finances accordingly. You can calculate your stamp duty with a stamp duty calculator.
Here is a guide on stamp duty calculator with the steps to use them. But first, know about stamp duty and its importance.
What Is Stamp Duty?
Stamp duty is an indirect fee that the state government levies on you whenever you buy or sell a property. Your property purchase is validated only after you have paid the stamp duty and registration charges. Payment of stamp duty validates the property in your name and makes your property documents legal. Your property purchase is not completed, and neither are you considered the legal owner of the property until you pay the stamp duty. Every state levies different stamp duty on the properties as per their discretion. However, it is usually 5-7% of the market value of the property.
Similarly, it is mandatory to register your property with the registrar by paying the registration charges. It is usually 1% of the property’s market value.
While these percentages look relatively small, they can turn into lakhs of rupees depending on your property value. Therefore, you must know how much you need to pay so that you can determine your budget accordingly.
What Is a Stamp Duty Calculator?
A stamp duty calculator is an online tool that you can use to calculate your stamp duty value and registration charges. With a stamp duty calculator, you can find the exact stamp duty amount for your property. You can calculate your stamp duty with the following steps:
While the state government levies stamp duty, it is based on various factors like age, usage of the property, size, location and type of the property. Moreover, stamp duty also often differs on the gender of the owner. Many states levy lower stamp duty for women buyers.
You must know that stamp duty is an out-of-pocket expense and is not included in the total home loan amount sanctioned by the lender. Therefore, being aware of the stamp duty cost will help you choose a house whose down payment and stamp duty you can afford. Use the stamp duty calculator from Kotak Mahindra Bank’s website and know your stamp duty, today.
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