Role of Stamp Duty Calculator in Property Registration

Are you going to buy a home soon? Congratulations as you are finally going to have your own abode where you can come after a tiring day at work and rejuvenate.

However, you must have researched about a property and also a home loan if you did have funds on your own. But, more than buying a new property, its registration could be taxing.

Hence, if you are set to buy a property, the price quoted by a builder is not the final price that you will pay. When you register it in your name, there will be an addition of a few lakh to it.

Also, when you go to register it in your name, you will be charged stamp duty and registration charges, cess and few things more. As a result, all these costs may increase the value of your home by 10% or more.

In India, an average of 5-7% of the value of a property is computed as stamp duty, and registration charges make for an additional 1%. Hence, to know your exact funding needs, you can use the stamp duty calculator India facility.

Few important things to know about stamp duty:

  • The stamp duty would vary as you move from north to south or from east to west side of a particular city or state. Basically, the local municipal corporation and the revenue department decides the applicable stamp duty. For instance, a property purchased in south Delhi would attract a higher stamp duty compared to a property bought in North or East Delhi. There are a lot of factors considered by the state revenue department to decide the applicable stamp duty. The best way to find out the applicable charges is by contacting a legal professional.
  • The stamp duty also varies depending on the age of property. Old properties would attract a different percentage as stamp duty as compared to new properties.  

What is a Stamp Duty Calculator?

A stamp duty calculator India facility is an online tool. It can help you calculate stamp duty and registration charges on your ‘to be purchased’ home. All that you can do is:

  • Enter the information about your property like the location, its total value, and click on the ‘calculate’ button to get to an exact figure.
  • You can use a property registration fee calculator if you also want to know the registration charges
  • You can add cess and surcharges to get to the final amount required to register the home
  • If you can’t use these online tools, you can always walk into one of the nearest property registrar offices to get all the details. You may or may not pay some charges for using such services at an office.
  • The stamp duty calculator India facility is mostly available free of cost at a leading lender’s website.

Can you Claim Tax Benefit on Stamp Duty and Registration Charges?

Have you recently purchased or build a property and paid stamp duty and registration charges? Then you may want to know if you can claim it tax benefits.

As per the Section 80C of the Income Tax Act, stamp duty and registration charges are allowed as a deduction. The maximum deduction that you can enjoy is Rs.1.5 lakh. You can claim this deduction only in the year you actually made the payment towards these expenses.

Having an own home is an achievement but registering it in your name to make it officially yours could demand some money. It is in the form of the stamp duty and registration charges.

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