Buying a home is no easy feat. Besides it being expensive in itself, there are also a lot of additional costs that you incur during the process. One such cost while buying a property is its stamp duty charges and registration fees. While your home loan might help you finance your dream home, the stamp duty cost also needs to be factored in. The stamp duty charges are based on a certain proportion of the property cost.
A stamp duty calculator is a unique tool to know the amount of stamp duty you need to pay on your property. It is available online and you need to enter the details of the property to calculate the amount of stamp duty. The rate of stamp duty is determined by the state governments.
What is a stamp duty calculator?
A stamp duty calculator is an online tool that helps you to know the exact amount of stamp duty tax you have to pay on your property. It usually comes down between 4%-10% of the cost of the property. Besides this, there is an additional charge of 1% levied for the registration. Besides these, there may even be some sub-charges that you may incur. A stamp duty calculator will help you identify and calculate these charges with ease.
How does it work?
You just need to enter the details of your property like the agreement cost of the property, ownership details, state/union territory details, and if you are an existing customer of the lender. The calculator will then show you the payable stamp duty tax for you.
Things that affect your stamp duty rates
Stamp duty rates may vary from state to state, depending on the applicable laws there. However, some basic criteria influence the stamp duty costs across states. These include:
- The age of the property
- Cost of the property
- Number of floors available
- Type of property – flat or farmhouse
- Location of the property
- The intent of use – residential or commercial
- Property owner’s gender and age
Besides these, there may be other costs like deeds of partition that may also be included while determining the amount of stamp duty.
Benefits of using a stamp duty calculator:
- Makes transactions easy and convenient: A stamp duty calculator makes the transaction process easy and convenient for both buyers and sellers. It removes all sorts of complexities in the property buying process.
- Accuracy and transparency: A stamp duty calculator ensures transparency and accuracy in transactions, thus helping buyers to make an informed decision with confidence.
- Fast processing: A property transaction is a long, tedious process involving lawyers, real estate agents, financial institutions, etc. You might have to wait for months to know your stamp duty obligation while the property transactions are being carried out. A stamp duty calculator eliminates all those issues and facilitates fast processing.
If you are a first-time buyer or an existing owner, a property is always considered one of the soundest investment options. A stamp duty calculator can help you determine your upfront financial obligation and arrange adequate funds to finance your property in addition to home loan.