Buying your dream home is a once-in-a-lifetime experience because it can be an overwhelming experience that requires an exorbitant amount of money that you will be required to repay over a period of 25-30 years. When you buy a home, you must go through the following steps: shortlisting the property you want to buy, applying for a home loan, meeting the eligibility criteria, documentation, receiving the sanction letter, and so on. One of the most important steps in this process is paying the stamp duty charges to ensure that the property is registered in your name.

Stamp duty is an indirect tax levied by the government on all property purchases, and paying the stamp duty allows you to claim ownership of the property because it designates proof of purchase between two or more parties. The stamp papers are purchased in either the seller’s or the buyer’s name and are valid for 6 months. It is in your best interest to pay these stamp duty charges as soon as possible because a delay in payment of stamp duty will result in a penalty of 2% per month (up to 200% of the remaining amount).

Here are some of the Stamp Duty Registration factors to consider:

• Age of your property
• Valuation of your property
• Your property’s location and the city in which it is located
• Gender of the property owner
• Age of the property owner
• Usage of the property

Here is a list of the documents you will need for a stamp duty registration:

• Partition deed
• Transfer certificate 
• Mortgage deed
• Exchange deed
• Tenancy deed
• License agreement
• Lease deed
• Reconveyance of mortgage property
• Power of attorney

Stamp Duty Calculator

Stamp duty charges are typically between 5-7% of the property’s market value, and registration fees are frequently 1% of the property’s current market value. Although even with the lowest percentages, the cost of stamp duty can run into lakhs, so it is critical that you consider these costs. These charges are not covered by the home loan, so you must have an adequate amount of savings when applying for a home loan.

It is recommended that you use a housing loan stamp duty calculator to determine the estimated cost that you will pay. A Stamp Duty Calculator can be used as follows: 

Step 1: Go to an online Stamp Duty Calculator.

Step 2: Enter your property’s address (State or City based on the calculator)

Step 3: Enter the valuation of your property.

Step 4: Click Submit to see the Stamp Duty charges you’ll be paying.