According to a report, the Government has extended 20% reduced circle rate on commercial, residential and industrial property in Delhi till December 2021.
This data suggests that the stamp duty in Delhi will also reduce.
Ideally, an individual needs to pay the stamp duty and registration charges when purchasing a property in Delhi. This certificate will serve as proof of property ownership.
Hence, it is essential to understand the steps for stamp duty payment. This will streamline the entire process.
How to pay stamp duty in Delhi?
Stamp duty in Delhi is a transactional tax paid by home buyers to the State Government. These rates are fixed by the Central Government and are often revised.
Steps to pay stamp duty are-
Step 1: Vist the Delhi online registration information system website and login
Step 2: Select the appropriate deed from the deed writer option. Select the area in which property is located under sub deed option
Step 3: Fill in details of the buyer, seller and witnesses.
Step 4: Enter the consideration amount and make payment.
Individuals should know that the website calculates the registration fee and stamp duty based on the circle rate of the property.
Ideally, one can use a stamp duty calculator that evaluates a property’s minimum value based on the higher value between circle rate and considerable amount.
A property buyer needs to visit the Sub Registrar’s Office to complete the property registration.
Apart from learning how to pay stamp duty in Delhi, individuals should be aware of its variables. They need to keep a tab over the current stamp duty rates.
What are the stamp duty rates in Delhi?
The rates set against stamp duty in Delhi are-
- Stamp duty rate on joint ownership- 5%
- Stamp duty rate for men- 6%
- Stamp duty rate for women- 4%
Stamp duty rate in Delhi for female homebuyers is set lower. This is done to encourage women ownership.
However, both men and women are mandated to pay uniform flat registration charges. The registration fee for both men and women is 1% of the value of a property.
Additionally, women homeowners can gain additional deductions on interest paid against a home loan up to 2 lakh and Rs.1.5 lakh on the principal amount. However, the property needs to be self-occupied.
If the husband and wife are joint property owners and both have a separate income source, both can claim tax deductions.
Since purchasing a house requires substantial funds, opting for a home loan seems justifiable.
Apart from offering tax rebates, a home loan also offers certain additional benefits.
What are the benefits of a home loan?
Following benefits make a home loan a good financial source for purchasing a house:
- Substantial fund
The primary reason to avail of a home loan is the loan amount. Ideally, a borrower can gain a considerable amount against the said credit to purchase a property. They can also use the excess fund to pay the stamp duty and registration charges.
- Simple eligibility
Eligibility terms against home loans are simple and easy to fulfill. The general requirement include-
- Salaried applicants need to have work experience of a minimum of three years.
- Age limit for salaried is 23 to 62 years and 25 to 70 years for self-employed applicants.
- Self-employed individuals need to show documents proving the business continuity of more than five years.
- Minimal documentation
Applicants need to submit minimal documents for verification. The amount is disbursed into a borrower’s account after the lender finds the papers authentic.
Some requirements include-
- Income proof like bank account statement for last six months
- Salary slips
- Business vintage of at least five years.
- KYC papers
- Flexible tenor
Borrowers get the flexibility to choose a tenor based on their financial strength against a home loan. This helps them make significant savings on the repayment structure.
For instance, choosing a short home loan tenure reduces interest outgo, which makes this borrowing affordable. Comparatively, a long tenor would only reduce EMIs.
To understand the concept better and possibilities of savings, one can use a housing loan EMI calculator.
These are some features of a housing loan that make it a viable option for novice house buyers. Additionally, these individuals should check rates under stamp duty in Delhi and make payments accordingly.