Under Section 3 of the Indian Stamp Duty Act, 1899, it is mandatory for the buyer to pay the stamp duty and the registration charges when buying a property. It must be paid after the sales deed is processed and the amount must be mentioned clearly in the sales deed. The sales deed and the proof of the stamp duty payment stand as proof of your property ownership.
We discuss everything you need to know about the stamp duty before buying a house:
Stamp duty rate
It varies from state to state. Every state has its own stamp duty rate. Many states even offer discounted stamp duty rates if a woman is applying as the owner or co-owner.
Registration fees
Even though stamp duty varies, registration charges are the same across the country.
The penalty in case of non- payment
Since stamp duty is onetime payment, there’s also a penalty for non-payment of the same. If one fails to make the payment, then they can be fined up to two percent of the total cost of the property that needs to pay every month along with the outstanding payment.
Stamp duty for apartments
The apartment owners have to pay the stamp duty along with the individual share of the property. For example, if a property is built on 20,000 sq ft and there are five apartments, then each owner will have to pay stamp duty for 4,000 sq ft.
Documented proof of ownership
If you have paid the stamp duty, then the same is mentioned in the sales deed which acts as the proof of your ownership of the property, in case there is any dispute over the ownership in the future.
State subject
Every state has its own stamp duty laws and has the freedom to change them as per requirement. The stamp duty amounts to one the largest revenue collection of every state.
Online payment of stamp duty
Many states have given the provision to pay the stamp duty online. Few states are also offering discounts on the online payment of stamp duty.
Home loan eligibility of LIG
Earlier, the banks did not add stamp duty and registration charges to the property’s cost which caused the home buyers to part with their own savings. In 2015, the RBI directed banks to factor the stamp duty cost and registration cost if the cost of the property is less than Rs 10 Lacs. This was aimed to motivate the low-income group to invest in property.
Stamp duty for home loan agreement
Banks charge stamp duty if you are availing the home loan. The charges can be anywhere around 0.1 to 0.2 percent. The bank asks you to keep the property documents with them until you have paid the entire loan amount.
According to the report published by the real estate advisory, more than 23 percent of millennials are living with their parents now and hope to move out of the house in the next 2 to 5 years. Around 65% of millennials aspire to buy property in the f...
Being a home owner is a matter or proud. Unlike the previous generation, young people today are able to purchase a house with the help of banks and financial institutes and do not have to wait years and years to save the money for buying the home. Th...
On September 4th, the RBI directed the banks and financial institutes to link their loan rates to the external lending benchmarks. The move is set to bring more transparency in the transmission of policy.
Banks will have to option to link the home...
Good news for the affordable housing buyers. Those who were deferring their plans to buy property expecting a reduction in Goods and Services Tax (GST) rate can now finalise their plan of property purchase. As under the Credit-Linked Subsidy Scheme (...
Disclaimer: Homeonline.com is a Real Estate Marketplace platform to facilitate transactions between Seller and Customer/Buyer/User and and is not and cannot be a party to or control in any manner any transactions between the Seller and the Customer/Buyer/User. The details displayed on the website are for informational purposes only. Information regarding real estate projects including property/project details, listings, floor area, location data Read morehas been sourced from multiple sources on best effort basis. Nothing contained herein shall be deemed to constitute legal advice, solicitations, marketing, offer for sale, invitation to offer, invitation to acquire by the developer/builder or any other entity. You are hereby advised to visit the relevant RERA website before taking any decision based on the contents displayed on the website. This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.