How Are Stamp Duty and Registration Charges Calculated?

On purchasing a property, buyers of the property have to pay stamp duty and registration charges. These charges are based on the value of the property. Because the charge is levied by the state government, stamp duty charges differ in different states of India. Overall, the charges can be between 4% and 7%. The buyer of the property is responsible for paying the stamp duty charges. In the case of property exchange, both the parties involved are liable for making the payment of stamp duty. In other words, stamp duty charges are divided equally between the parties. Knowing about the techniques of stamp duty calculation can be advantageous if you are buying a property or planning to buy a property.

Calculation of Stamp Duty Charges

Different factors determine the actual stamp duty charges. Property value is the base on which stamp duty charges are calculated. The market value of the property and circle rate also play a critical role in deciding stamp charges. Between the market value and the circle rate, stamp duty is calculated on the higher value. For instance, if you have bought a property for INR 50 lakhs and the circle rate is INR 60 lakhs, the stamp duty needs to be paid on the higher amount, which is INR 60 lakhs. Other factors that influence this calculation include property type, property area, property status, gender of the property buyer, and the age of the property buyer.

For your convenience, you can use the stamp duty calculator available online for easily calculating the exact charge. The calculator saves you from manually calculating the charges, which can be tedious and time-consuming. Using the below-mentioned steps, you can calculate these fees and charges using an online calculator:

• Find an online stamp duty calculator. You can visit the website of Bajaj Housing Finance and use the calculator provided there.
• From the drop-down menu, select the state in which property is located.
• Using the slider, select the value of the property.
• The calculator automatically shows you the stamp duty liability and also the stamp duty rate applicable in the selected state.

Stamp duty is a non-refundable charge and helps in establishing the ownership of the property. It is also a legal obligation to pay the stamp duty charge. By deciding to register the property in the name of a female owner, it is possible to reduce the burden of stamp duty charges. Women property buyers generally get 1% to 2% discount on the usual stamp duty rate. On the paid stamp duty charges, individuals can claim tax benefits under Section 80(C) of the Income Tax Act.

In addition to the stamp duty charges, byers of the property must also pay registration charges. In most of the Indian states, buyers have to pay 1% on the market value of the property as registration charge.

What is loan against the property?

For buying a property, you can also avail of a loan against the property you already own. A loan against property (LAP) is a secured and high-value financing option that comes without any end-use restriction. Since this kind of loan includes a collateral, individuals easily get approval for a loan against property. loan against the property interest rates are also comparatively lower. If you decide to avail of a loan against property, loan against the property EMI calculator can be of great help. Using the calculator, you can choose an affordable EMI and a suitable repayment tenor for comfortably paying off the loan.