When buying a property in India and deciding the home loan amount to be secured to facilitate the transaction, one of the key expenses that homebuyers must factor in but often forget is the stamp duty. The stamp duty is a tax paid to the state government during property transactions, legalizing the deal and serving as proof of ownership. The stamp duty varies depending on factors like the market value of the property and the state in which the transaction has taken place. For most homebuyers, calculating stamp duty can seem like a daunting task. Fortunately, stamp duty calculator have simplified the process of calculating the estimated stamp duty on a property purchase. 

What is Stamp Duty? 

The stamp duty is a tax that state governments impose on property transactions. The stamp duty is not only applicable to real estate purchases but also car purchases and sometimes, even the purchase of shares. The stamp duty payable depends on several factors. Below we discuss some of these factors. 

1. Property Value: The higher the value of the property bought with the loan funds, the higher will be the stamp duty applicable. 
2. Location: Stamp duty varies based on state. Different states apply different stamp duties on property transactions.
3. Type of Property: The stamp duty applicable also changes depending on whether the property is residential, commercial or land. 
4. Buyer Status and Gender: Stamp Duty tax exemption may be available to first-time homebuyers. Further, many states offer rebates on stamp duty to female homebuyers.

Stamp Duty Calculator: What is It and How Does it Work? 

A stamp duty calculator is an online tool that lets you calculate the stamp duty applicable to your property purchase. This online tool considers various factors affecting home loan eligibility to calculate the stamp duty payable on your property transaction. The stamp duty calculator is also user-friendly, and accurate, and can prove to be greatly helpful with home loan and property purchase planning. It helps you better understand whether or not you can afford to purchase the property you have your eyes on. 

Follow these steps to use the stamp duty calculator: 

1. Enter the purchase price or the market value of the property you plan to buy.
2. Next, select your location or the state in which the property is located. 
3. Some stamp duty calculators are more detailed and may require you to provide additional information, such as whether or not you are a first-time homebuyer or if you qualify for any other exemptions. Similarly, the calculator may also ask you if you plan to buy the property for yourself or if it’s an investment purchase. 
4. Once all the required details go into the stamp duty calculator, the calculator will give you an idea of the stamp duty you will need to pay on your property purchase. 

Benefits of Using a Stamp Duty Calculator

Here are some of the benefits of using a stamp duty calculator and some reasons why you should use this handy tool when applying for a home loan. 

1. The stamp duty calculator lets you calculate the exact stamp duty payable on your property purchase, making home loan planning easier and more accurate. 
2. The stamp duty calculator helps you save time by providing results within a fraction of a second. 
3. The calculator is free to use. Borrowers can easily try out different combinations of values to see how the output/result changes. 
4. This online tool is easily available and quite straightforward to use. Home loan borrowers and home buyers can use it while on the go. 

Final Words

If you are planning to take the home loan route to live your dream of homeownership, make sure to take additional costs, such as the stamp duty and registration charges into account, when deciding the right loan amount for you. Further, use online tools, such as the stamp duty calculator and the home loan EMI calculator, to make the process of applying for a loan and loan repayment planning easier. Further, make every effort to secure the loan at the lowest home loan interest rates by maintaining a high CIBIL score, income and job stability, low debt-to-income ratio, low LTV ratio, and meeting all the home loan eligibility requirements. Low home loan interest rates will lead to affordable EMIs, making the process of loan repayment stress-free.