When you are buying a new house, there are some unexpected additional expenses that you have to take care of. Stamp Duty is one of those expenses. Usually, this is a cost you might end up overlooking, but you have to know how to take care of it when the time comes.
What is Stamp Duty?
Stamp Duty, simply put, is a tax levied on any immovable property having a value of over Rs. 100 that is registered, in accordance with Section 3 of the Indian Stamp Duty Act, 1899. This tax is paid after your sale deed is processed, apart from the stamp duty you have to pay when you take out a housing loan.
What is the Rate of Stamp Duty?
The rate of stamp duty varies between 4-10% of the total cost of your house in general. This is coupled with the registration fee as well, which is 1% of the stamp duty. For women, stamp duty rates are lowered in many states in order to encourage ownership of property amongst them. In Delhi, for example, women only have to pay 4% stamp duty instead of the normal 6%.
You can pay stamp duty online as well instead of going to the Collector of Stamps, but only in a few states like Maharashtra which have initiated this measure to simplify buying a house.
What Precautions Should I Take?
If you fail to pay the complete stamp duty on time, you will have to pay a fine of 2% on the outstanding amount every month, going up to 200% of the original amount.
Also, if you end up getting into a dispute regarding your house in the future, you will not be able to receive proper legal aid since it is the stamp duty documents that act as concrete proof that you legally own your property. It will also be difficult for you to sell your property in the future since you will not be a complete legal owner of it.
How Can I Calculate Stamp Duty Online?
Calculating stamp duty online is a simple process – a simple Google search will yield many websites that can do this for you.
One of these websites is Legal Service India (www.legalserviceindia.in) where you simply need to enter the total value of your property and the state it is in and click submit.
You can also contact agents at Tata Capital housing finance loans to assist you with this calculation.
When you buy a house, avoid going broke because of extra expenses like stamp duty – apply for a Tata Capital home loan. Tata Capital’s home loans feature the most flexible home loan eligibility criteria along with low home loan interest rates starting at 9.25%. In addition to all this, Tata Capital offers you multiple options when it comes to repayment of your loan, ensuring that you will not have to lose sleep over it. With a maximum loan amount of Rs. 5 crores, the benefits are endless when you apply for a housing loan with Tata Capital.