Finance

How To Calculate Stamp Duty Charges Using an Online Stamp Duty Calculator?

Stamp duty refers to the additional expenditure that home buyers must pay to become the property’s legal owner as per the Indian tax regulations. Stamp duty payment is an important step to acquire the legal right of the property. To calculate the exact stamp duty rate on a home loan, use the stamp duty calculator.

 Stamp Duty

What is a stamp duty calculator?

A stamp duty calculator is an instrument that assists you to know how much stamp duty you will require paying on your residence or property in any state or city. Just by adding property details like property value, state where the home is situated and other important information, you can calculate stamp duty charges. You can also compute the stamp duty and registration charges through the stamp duty online calculator before you apply for a home loan. Doing so would provide you with a rough idea about the overall cost involved in availing a home.

How are stamp duty and registration charges computed?

Stamp duty charges are fixed by the state and thus may differ across the country. At present, the stamp duty charges may range anywhere between 3 percent and 10 percent of the property value. Property location, owner’s gender and age, property’s use, property type and project amenities are important parameters that impact the stamp duty rates.

Besides stamp duty charges, you will even require paying registration charges, which generally are collected by the government and are usually uniform throughout the state. Registration charges are generally 1 percent of the whole property’s market value.

How is stamp duty computed?

Stamp duty calculation is based on the property’s cost. Every state has its own parameter depending upon which fees are charged. It is generally paid depending upon the circle rate as estimated by the Indian government. Stamp duty charges vary based on the property type i.e., residential, or commercial, and even area type whether urban or rural. The factors considered for calculating your stamp duty charges are property status (new or old), property area (metropolitan, rural, or suburban), owner’s age, property location, owner’s gender, property type (independent or flat) and property usage (commercial or residential).

The best and simplest way to compute your stamp duty is to use a stamp duty online calculator. Such online calculators require little major information like property value, state etc., to compute your stamp duty.

Bottom line

As lenders omit stamp duty and registration charges while fixing your property’s cost, it is necessary for you to arrange the cost from your own funds. To accumulate sufficient funds to pay the charges, make sure to compute the approximate stamp duty and registration charges before you apply for home loan.

Jeffery D. Silvers
Love and share my articles, I will be happy to react on it ! Spent 2002-2009 promoting weed whackers in Edison, NJ. Earned praise for importing junk food for fun and profit. Spent 2001-2006 exporting teddy bears in Atlantic City, NJ. Had some great experience investing in tattoos in Fort Walton Beach, FL. Spent 2002-2007 selling action figures in the aftermarket. Enthusiastic about working on basketballs on the black market.