Stamp Duty Calculator: Payment, Tax Benefits, Charges And More

Whenever you buy a property, you need to pay stamp duty charges. Every state has a different charge that is levied and based on where you reside, you will need to pay the tax accordingly. You can find the right stamp duty calculator for the sake of calculating the stamp duty charges appropriately. The rates can be anywhere from 3 to 7 percent.

Stamp duty charges are an additional cost that is incurred when buying new homes. It is a mandatory charge that has to be paid or else the registration of the property will not be considered binding and legal. So, here we are going to share the important details about the stamp duty calculator.

What Are Stamp Duty Charges?

Stamp duty charges are a form of tax that a buyer has to pay to the state government whenever you are looking to buy a new house. When you pay the stamp duty charges, it will act as legal proof of the ownership of the purchase. If you don’t pay the charges, you will not be able to attain legal ownership status. In India, the charges are going to vary from four to nine percent of the market value of the property.

How Do You Calculate The Stamp Duty?

Stamp duty is levied on the ready reckoner rate or the market value or the circle rate or even the consideration value of the property. Whichever is higher among these, will be charged.

Let us clear the details with the help of an example. If you agreed to buy a flat for Rs.60 lakhs and the circle rate is Rs. 50 lakhs, then the stamp duty will be charged on Rs. 60 lakhs. If suppose it is 5% in the state you reside in, then the stamp duty charges will be Rs. 30,000.

The Charges In Home Loan

Some people wonder if the home loan amount that is sanctioned is going to cover the stamp duty and the registration charge as well. You have to know that these charges are not a part. You have to pay them over and above and it is an additional expense that is incurred.

Sometimes, if you do not have any liquid credit, you can choose to take another personal loan for the sake of paying these charges. However, always analyse your paying capability before taking any loan because the last thing you want is to sink into the type of debt you can’t stand or manage.

What Happens If The Buyers Pay An Inadequate Stamp Duty?

If the buyer of a property doesn’t pay the right amount of stamp duty charges and only pays some part of it, he/she is liable to be penalized.

The actual penalty amount is going to vary from one state to the other. In most of the states, the penalized amount is going to range from 8 to 20 percent of the actual stamp duty. They may also face imprisonment based on the rules of the state. Some state confers both imprisonment and the penalty as well.

When Do You Need To Pay The Stamp Duty?

Mostly, the stamp duty is paid when you are looking to register your property. This amount needs to be paid on the day the documents are executed. It is mandatory to pay the charges or else your ownership will not be considered legal. In case of any dispute arising, later on, you will not be able to get any legal help as you will not be treated as the owner of the property.

Who Needs To Pay The Stamp Duty Charges?

The stamp duty charges will have to be borne by the home buyer. If both the seller and the buyer agree mutually and list the details in the legal agreement, they may jointly agree to share the charges. The share and contribution can be different as well. However, whatever they decide should be a mutually agreeable decision and needs to be listed in the contract.

Can You Claim Stamp Duty Charges As Tax Refunds?

Yes, there is a provision for the deduction of stamp duty charges under section 80C of the income tax act. However, there is an upper limit of Rs. 1.5 lakhs.

Can You Avoid The Payment Of Stamp Duty Charges?

No, there is no way you can evade stamp duty charges. As per the Indian Stamps Act, 1908 all stamp duty tax evaders will have to bear monetary penalties or even a jail term up to a maximum of 12 months. Different states have their own rules and the penalty amount varies, but all states will have some charges to pay as a means of penalty.

How Can I Save The Stamp Duty Charges?

Some states offer a rebate if the house is purchased in the name of a woman. Haryana, Delhi, Uttarakhand, and Rajasthan have a rebate of 2% for female property buyers. So, if you want to save the stamp duty calculator charges, you will be able to make some savings in this manner.

How To Pay The Stamp Duty And Registration Charges?

After having cleared most of your queries, here is now the detail for how you can pay the stamp duty and registration charges,

1. Physical stamp papers

This is the old and traditional way of payment. Here you buy stamp papers from authorized sellers and then make the contract on it. This is usually the chosen method when the stamp duty charges are not very high as the stamp paper rates are then paid while buying the legal paper.

2. Franking

This is not a very common method as one needs to pay an extra charge that is levied by the franking agent. However, if you are willing to pay the franking charge, you can use this way and then use the banks that do the franking process and get the stamp duty tax paid.

3. E-stamping

This is by far the most common and popular method in current times. You can pay the amount online or deposit it in a bank and get the challan. You can then enter the acknowledgement number present in the challan on the SHCIL portal. Make sure to follow the on-screen instructions and you will be able to get the e-stamp papers.

So, these are the key details that you need to know as far as the stamp duty calculator is concerned. Make sure to know the rates being charged in your state and then follow the process.

The stamp duty rates in Maharashtra will differ from the stamp duty charges in Karnataka.