Step by step guide: How to use stamp duty calculator? - Loan Trivia


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Thursday 16 September 2021

Step by step guide: How to use stamp duty calculator?

stamp duty calculator

 When a borrower purchases a property, the state government levies a tax amount, known as stamp duty. This is also known as a confirmation fee essential for the legalization and verification of the ownership of a property. Without paying this amount, individuals will not be considered as the legal owner of the property.

Applicants can use a stamp duty calculator to assess the overall cost of stamp duty that needs to be paid while purchasing a property. But before that, borrowers need to know how to use this effective calculator.

How to use a stamp duty calculator?

To obtain the stamp duty value, borrowers need to input the following factors in a stamp duty calculator available online -

  • Property’s location

  • Value of property

After feeding this information, borrowers can determine the stamp duty value and have a fair idea of their borrowing amount for a housing loan in India.

While paying stamp duty charges, borrowers need to furnish the following documents:

  • Sale deed

  • Khata certificate

  • Provide a photocopy of the society share certificate, NOC and society registration certificate in case of a housing project

  • Current financial statement

  • Tax payment of last 3 months

  • Encumbrance certificate 

  • In case of land purchase with a home loan, applicants need to provide title documents of a landowner, records of right and tenancy corps or a 7/12 extract and conversion order.

Borrowers are required to submit some essential documents if asked. Thus, this stamp duty calculator makes it convenient for the applicants to assess the additional charges associated with a home loan.

Individuals must know that these stamp duty charges vary across the country, and in India, it ranges from 3%-10%. Apart from stamp duty charges, borrowers also need to pay registration charges imposed by the Central government and do not differ across the country. Usually, 1% of property’s total market value is imposed as registration charges.

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