1. Summary
  2. Stamp Duty
  3. Stamp Duty Calculator
  4. Stamp Duty Calculation


Whether you’re aiming to get a home currently or in the future, it’s crucial to understand that the value of your home doesn’t comprise registration, stamp tax, and franking charges. Most homebuyers understand stamp tax and Franking because the same. Let’s assist you to get an improved understanding of those 2 terms during this section.

In India, each purchaser is needed to pay varied charges when shopping for a home. These embody registration fees, stamp tax payments, and Franking charges. you will be aware of the terms, and most frequently, folks get confused between stamp tax and Franking charges on consumer credit. Let’s get to understand the distinction between these 2 terms:

Stamp Duty

This is primarily a tax that homebuyers are susceptible to pay money for legalizing their documents (such as sales deeds or transfer of property or assets), throughout the house shopping method. In step with tax laws, it’s necessary for each purchaser to pay stamp tax, to point out that his/her property is wrongfully valid. Let’s get to understand some necessary points:

  • Stamp Duty varies from state to state
  • In Mumbai, around five-hitter of stamp tax is levied on the overall price of the property
  • In India, the foremost common modes of stamping are franking, e-stamping, and a paper-based technique.
  • Franking charges
  • Franking may be a method of obtaining your agreement sealed, so confirming that you simply have created the stamp tax payment. Franking proves that your documents are legal. Once you approach a bank or a Franking agency, they affix your agreement work with a stamp or denomination, employing a machine, so indicating that your stamp tax is paid. Franking charges are applied to each consumer credit and property sale document. The fees vary from state to state.
  • Here may be a transient clarification of how to stamp tax differs from Franking Charges:
  • Stamp Duty may be a tax element that you simply are needed to pay to the govt. to legitimate your home shopping for documents. On the opposite hand, franking may be a method of stamping that indicates you’ve got paid the mandatory stamp tax charges.
  • Stamp Duty is calculably supported by the overall price of a property, and also the charge per unit is different in each different state. Usually, it’s within the vary of three to four-dimensional. This relies on the state block, location, age, and kind of property, among others. A franking charge is mostly 0.1% of the house loan price. As an example, if you’re taking a consumer credit of Rs 1.5 lakhs in Mumbai, then you’re susceptible to paying  0.1% on the property price. This implies you wish to pay approximately Rs 30,000.
  • Home Loan franking charge or stamping is sometimes administrated by banks or agencies that are authorized by the govt. Once it involves stamp tax, it’s paid at the time of the house registration method that’s done at the Sub-Registrar of Assurances.
  • Most folks are aware that the payment of stamp tax is a vital procedure at the time of home shopping. The franking charge on consumer credit is hidden by the banks. Hence, it’s invariably necessary to envision each stamp tax and franking charge when you intend to shop for a home.

Stamp Duty Calculator

Stamp duty calculators are wont to realize the stamp tax applicable on a given property in any state across the country by getting into varied details like property price and also the name of a state.

Stamp Duty Calculation

You should remember the fact that stamp tax charges on property registration vary from state to state. There are multiple parameters employed by the authorities to calculate charges involving the kind of building or plot concerned.

For example, some states think about the made space for scheming stamp tax and registration charges for freelance homes whereas a figure is found out supported the settled space within the case of residences. The stamp tax may also be revised by states annually as per the state budget. In some states, ladies get a concession on each stamp tax and registration charge.

Here are a number of the factors that you simply should detain mind regarding the implication of stamp tax at the time of property registration.

  • The calculation is primarily done supported by the “Guidance Value” of the property, the minimum price at which the property ought to be registered. the worth is set by the competent authority underneath the authorities.
  • The charges are indirectly proportional to the value of the property and different aspects like market performance.
  • The location of the property like urban or rural areas conjointly encompasses a say decide the stamp tax due.
  • Other levies like state and central taxes are applicable on registration and stamp tax charges.