Buying a home requires a lot of money. You can take a Bajaj Finserv Home Loan for this. But the price quoted to you for the house is not the final price you pay. You need to factor in costs such as the stamp duty and registration charges applicable.
Home loans cover up to 75 to 80% of the property’s value, but it doesn’t cover stamp duty and registration charges. You need to meet these costs from your pocket. Read on to how the stamp duty and registration fees are calculated for your home.
What is stamp duty?
Stamp duty is the duty you need to pay the state government while transferring the title of a home to your name. Paying stamp duty is mandatory for the registration of your property under section 3 of the Indian Stamp Act 1899. Stamp duty and registration charges vary across states and are dependent on a few factors such as:
Property’s location
Properties located under a municipal area attract higher duties than those under the ambit of a panchayat. For example, a property worth less than Rs. 25 lakh located in a municipal area in Kolkata attracts stamp duty of 7-8%*. On the other hand, if the property falls under a panchayat area, the stamp duty to be paid is 5%.
Age of the property
The age of the property also determines the stamp duty to be paid. For instance, if you buy a pre-owned home that has been used for a few years, it would attract a lower stamp duty than a new home.
Owner’s age and gender
Senior citizens and women get a discount on stamp duty and registration charges.
Amenities that come with your home
The amenities offered at the premises where your house is located also play a crucial role in determining stamp duty. You will need to pay higher duty if there are swimming pools, elevators, a gymnasium or community halls.
Registration charges
Registration charges are the charges you need to pay over and above the stamp duty and are generally 1% of the property value. For instance, if you have purchased a home worth Rs. 50 lakh, the registration charges will be Rs. 50,000.
Today, you can pay for stamp duty and registration charges with physical stamp papers, e-stamping or franking. So, once you purchase a home make sure you pay the requisite stamp duty and registration fees.
Pre-approved offers on home loans from Bajaj Finserv on home loans and other financial offerings make owning your dream home easy. All you need to do is to share some basic details to know about your pre-approved offer.
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