Buying a home is exciting. However, the property price is not the only cost you pay. In fact, two extra charges catch many buyers off guard \u2014 stamp duty and registration charges. So let’s understand both, simply and clearly.<\/p>\n\n\n\n
What Is Stamp Duty?<\/strong><\/p>\n\n\n\n Stamp duty is a tax paid to the state government. It is charged when you buy a property. Think of it as the government’s fee for making your ownership legal and official.<\/p>\n\n\n\n Without paying stamp duty, your property documents are not valid in court. Therefore, it is not optional. Every buyer must pay it.<\/p>\n\n\n\n How Much Is Stamp Duty?<\/strong><\/p>\n\n\n\n The rate varies from state to state. However, as a general guide:<\/p>\n\n\n\n For example, if your home costs \u20b950 lakhs and the stamp duty rate is 6%, you pay \u20b93 lakhs as stamp duty alone. So always factor this into your budget early.<\/p>\n\n\n\n What Are Registration Charges?<\/strong><\/p>\n\n\n\n Registration charges are separate from stamp duty. Additionally, they are paid to register the property in your name at the local sub-registrar’s office. This step makes you the legal owner on record.<\/p>\n\n\n\n How Much Are Registration Charges?<\/strong><\/p>\n\n\n\n Typically, registration charges are 1% of the property value<\/strong>. Moreover, some states cap this amount at a fixed fee. So it is worth checking your state’s rules before you plan your budget.<\/p>\n\n\n\n Who Pays These Charges?<\/strong><\/p>\n\n\n\n In almost all cases, the buyer pays<\/strong> both stamp duty and registration charges. Furthermore, these must be paid before or at the time of property registration. The seller is generally not responsible for these costs.<\/p>\n\n\n\n Are These Included in Your Home Loan?<\/strong><\/p>\n\n\n\n This is a question many first-time buyers ask. Unfortunately, most banks and home finance companies do not<\/strong> include stamp duty in the home loan amount. As a result, you need to arrange this money separately.<\/p>\n\n\n\n However, some lenders do offer to cover a part of these charges. Therefore, it is always worth asking your housing finance partner before you finalise the loan.<\/p>\n\n\n\n How to Pay Stamp Duty<\/strong><\/p>\n\n\n\n The process is straightforward. Here is how it works:<\/p>\n\n\n\n Furthermore, always keep your payment receipt safe. You will need it at the time of registration.<\/p>\n\n\n\n Tips to Reduce Your Stamp Duty Burden<\/strong><\/p>\n\n\n\n Stamp duty can be a large sum. However, there are a few smart ways to reduce it legally:<\/p>\n\n\n\n A Quick Summary<\/strong><\/p>\n\n\n\n Plan Before You Buy<\/strong><\/p>\n\n\n\n Stamp duty and registration charges together can add up to 6% to 8%<\/strong> of your property value. For a \u20b950 lakh home, that is \u20b93 to \u20b94 lakhs extra. So plan for this cost well in advance.<\/p>\n\n\n\n EMI calculator<\/strong> can be used to estimate your monthly payments. Then set aside funds separately for these charges. Above all, talk to your home loan finance company early. A good housing finance partner will help you plan the full cost \u2014 not just the loan amount.<\/p>\n\n\n\n Ready to apply for a home loan?<\/strong> Start with easy home finance options online today and get one step closer to your dream home.<\/p>\n\n\n\n Knowledge Hub<\/strong>\n
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\n\n\n\n<\/td> Stamp Duty<\/strong><\/td> Registration Charges<\/strong><\/td><\/tr><\/thead> What is it?<\/td> Tax on property purchase<\/td> Fee to register ownership<\/td><\/tr> Who pays?<\/td> Buyer<\/td> Buyer<\/td><\/tr> Typical rate<\/td> 5%\u20137% of property value<\/td> ~1% of property value<\/td><\/tr> Included in home loan?<\/td> Usually no<\/td> Usually no<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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