Learn About Stamp Duty on Property Purchase in India
Stamp duty can turn out to be a significant percentage of the property’s value, according to the state in which the property is in. Thus, many homebuyers often forget to account for it in their financial planning and face difficulty arranging money to pay the same. Let’s learn more about stamp duty to make sure you are not one among them.
How is stamp duty calculated?
Stamp duty is calculated as a percentage of the total property value. This percentage differs from state to state. For instance, if you are buying a property that costs Rs 50 lakh and if you are from a state that has 8% stamp duty, you will have to pay Rs 4 lakh.
But if you are unsure about the percentage of stamp duty your state levies and want an easy way to calculate, you can use a stamp duty calculator. Once you input the property value and the state in which your property is, it will give you the exact amount of stamp duty you will have to pay.
Why is accounting for stamp duty important?
As mentioned above, stamp duty is a form of tax, and tax payment is important in any country. Many people try to evade the same, but it is not advisable as it can land you in a lot of trouble. Instead, it is wise to account for it when you do your financial planning for the house itself.
One important thing to note here is that a home loan doesn’t cover the stamp duty; instead, it is something that you have to bear on your own as a homebuyer.
How can you pay stamp duty?
Once you have figured out the amount of money you have to pay, you can play online and offline.
The offline process is more common. The land registration and all its agreements are written on stamp papers. A stamp paper has an assigned monetary value to it, and the total value of all the stamp papers used is usually equal to the stamp duty that has to be paid.
At the same time, you can also pay stamp duty online through the StockHolding Corporation of India Limited website. Here, you will have to select the state and fill out the necessary information. It will show you the amount you have to pay as stamp duty, and you can make a payment using one of the online payment methods.
Although stamp duty can be heavy on the pocket, you must pay it for the property registration process to be complete. Calculate your stamp duty and make sure you are prepared to pay it.