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Home Loan Excludes Stamp Duty and Registration Charges

· Home Loan

There are several costs involved when you are purchasing a home. Some of them are parking space or a maintenance fee, stamp duty and registration charges. When you go for home loans, these charges will not be covered in that. You have to spend separately for home loan stamp duty and registration charges and maintenance fee, etc. You have to set aside money from your pocket for these expenses. Currently, it is charged up to 12% depending upon the region and the prevailing government’s discretion. However, the National Housing Bank (NHB) has requested the government to reduce the rate to 5-6%. Let’s see about the stamp duty and registration charges in detail.

Stamp Duty

According to Indian Stamp Act, 1899, this is the tax that is levied on any kind of monetary transaction that takes place at the time of purchase of your home. Some of the transactions that are included in this tax are conveyance deeds, sale deed and power of attorney papers. On paying of stamp duty, one can claim these documents. The exact value is decided based on the value of the property and this is compared with the circle rate and the amount is calculated on the higher value.

Registration Fee:

Apart from the stamp duty, you have to pay registration fee to get the property registered in your name. It is charged 1% on the value of the property or its market price. This also varies according to the city or region.

So when you go for home loan, you have to set aside an amount for stamp duty and registration as it will not be included in the home loan that you are availing.

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