Stamp Duty and Property Registration Charges in Bangalore

While purchasing a house, one must also bear in mind Stamp Duty and Property Registration as well. This is bound to increase the expenses on your house and varies from state to state. Mandated by the government under Section 3 of the Indian Stamp Act, 1899, these charges are collected to authenticate the sale agreement and to maintain a record of the property as well. The state government fixes all the charges and it is important to understand these charges before making a purchase.

The stamp duty and registration charges in Bangalore are mentioned below:

How to calculate Stamp Duty charges in Bangalore?

Follow the steps mentioned below to calculate stamp duty charges in Bangalore:

Step 1: Visit https://kaverionline.karnataka.gov.in/StampDutyCalculator/StampDutyCalculation

Step 2: Choose the nature of document from the drop-down menu

Step 3: Click on ‘Proceed’.

Step 4: Choose the required details.

Step 5: Click on ‘Calculate’.

How to Pay Stamp Duty and Registration Charges in Bangalore

The following methods can be used to pay stamp duty and registration charges in Bangalore at the sub-registrar office:

• You may purchase stamps from the Treasury or authorised dealers.
• You can print a document on a plain paper and pay the stamp duty through a challan or scheduled band/demand draft/pay order issued by nationalised bank. However, make sure you make the payment within two months of the document's execution date and get certification from the sub-registrar or jurisdictional district.
• You can make the stamp duty payment to the government via a challan or scheduled band/demand draft/pay order issued by nationalised bank.

Stamp duty slashed to 3% by Karnataka Government

Karnataka state government has proposed a decrease in stamp duty charges for homes that are valued between Rs.20 lakh to Rs.45 lakh to 3%. The reduction in stamp duty will be applicable only to houses that fall in the affordable housing segment. This is a segment that comprises 48% of the unsold inventory in the country so a reduction in stamp duty charges may boost sales of such units.

How are Stamp Duty and Property Registration Charges Calculated in Bangalore?

Let us say that a plot in an urban area in Bangalore costs Rs.5,000 per square feet as per BBMP. Therefore, the guidance value of the property will be Rs.5,000 times of 1000 = Rs.50,00,000.

Mr. Raghav would now like to purchase a property of 1000 square feet at Rs.5,000 per square feet.

Therefore, the guidance value of the property will be Rs.5,000 times of 1000 = Rs.50,00,000.

Stamp Duty Charges will be 5.6% of saleable value (Rs.50,00,000 lakh) = Rs.1,50,000.

Registration Charges will be 3% of saleable value (Rs.50,00,000 lakh) =Rs.50,000.

The total Stamp Duty and Registration charges will be Rs.1,50,000 + Rs.1,50,000 =Rs.2,00,000..

Therefore, Mr. Raghav has to pay a total of Rs.50,00,000 + Rs.2,00,000 = Rs.52,00,000 to obtain the property.

Stamp Duty Calculator

With technology amalgamated into finance, it has revolutionised the way that people access financial data. This is true for calculating stamp duty fees as well. For a reasonable price, one can estimate how much stamp duty is payable. All you need to do is enter basic details with regard to your property and click on ‘Calculate’.

What are the Factors that Determine Stamp Duty Charges?

The property’s age: Since stamp duty is calculated on the total value of the house or property, the age of a particular property plays an important role in determining stamp duty charges. This is so because older properties tend to be less expensive than newer properties.

Age of the property holder: Senior citizens usually pay a lower stamp duty charge in most states. This is why the age of a property holder plays an important role in determining stamp duty charges.

Gender of the Owner: In India, women usually pay a subsidised stamp duty fee when compared to men. Men end up paying roughly 2% more than a woman.

Purpose of the property: Commercial properties usually draws a higher stamp duty fee in comparison residential properties. This is so because commercial buildings would usually require a lot more amenities when compared to a residential building.

Location of the property: The location of the property also determines the stamp duty fee payable by an individual. A property located in an urban area draws in a higher stamp duty than if the property were to be located in a rural or sub-urban area.

Amenities: The number of amenities that a property has also dictates the stamp duty fee. A building with more amenities requires a higher stamp duty fee while a building with lesser amenities will have a lower stamp duty fee. Amenities like library, swimming pool, gym, sports area, lifts, gym, etc., will require an individual to pay a higher stamp duty fee.

FAQ on Stamp Duty & Property Registration Charges in Bangalore

1. What is stamp duty and registration charges in Bangalore?

   The Karnataka state government revised stamp duty charges in the state. Stamp duty will now be 3% for properties that are priced in the Rs.20 lakh to Rs.45 lakh range. Properties priced above Rs.45 lakh will continue to have 5% stamp duty as before. Properties that are valued at less than Rs.20 lakh will be charged a stamp value of 2%. There are no changes in the registration charges which remains at 1% of the property value no matter the kind of ownership or the value of the property.

2. How are property registration charges calculated in Bangalore?

   The Karnataka state government calculates property charges in the following way: the super built-up area is taken for the calculation in the case of multistorey apartments while the total constructed area is calculated for independent houses. For independent plots, the calculation is based on the square feet area of the plot multiplied by the current guideline values of that particular area.

3. How are registry charges calculated for Bangalore properties?

   The registration charge for properties in Bangalore is calculated at 1% of the property value irrespective of the price of the property or the ownership (male/female/joint ownership).

4. What is stamp value of property in Bangalore?

   For properties that are priced between Rs.20 lakh to Rs.45 lakh, for properties which cost less than Rs.20 lakh the stamp value is at 2%, and the stamp value is 5% for properties that cost above Rs.45 lakh the stamp value is 5%. However, apart from this, there is a surcharge of 2% and cess of 10% on the stamp duty. This means that in urban areas, for properties that cost more than Rs.45 lakh, the stamp value will be 5.6%. The stamp duty is 5.6% in village panchayat areas as well because of the surcharge of 3%.

5. How is flat registration value calculated in Bangalore?

   For flats in Bangalore, the registration value is calculated based on the super built-up area.

6. How can I register my property in Bangalore?

   You can now register your property online in Bangalore. This can be done on the government portal called Kaveri Online Services. There are more than 200 sub-registrar offices that are listed on the portal for registering your flat according to its location in the city.

7. Is stamp duty calculated on carpet area, built-up area, or super built-up area in Bangalore?

   Stamp duty is usually calculated based on the super built-up area in Bangalore.

8. Do I have to pay stamp duty on interest that will be accrued on the loan regardless of the documents signed as security for the loan?

   No, the loan amount is subject to stamp duty payment. There is no need to pay duty on interest that has accrued.

9. Do gift deeds in favour of family members qualify for a stamp duty concession?

   Yes, according to the Karnataka Stamp Act's schedule, a person must pay Rs.1,000 in stamp duty if they are the donor's husband, wife, son, daughter, daughter-in-law, or grandchild. Additional stamp duties are Rs.1,000 for local bodies and Rs.50 for infrastructure development. The total amount of duty payable is Rs.2,050.

10. Is it legal to obtain ownership of a flat or flat through the co-operative society's transfer of shares without a registered deed?

    No, it lacks legal validity. According to the Registration Act of 1908, Co-operative Societies that assign flats or apartments to their members are required to register the sale deed in the registry office.

11. Is it possible to write a document on stamp paper that is already available and then pay the unpaid stamp duty in an emergency?

    Yes, if you make the deficit stamp duty payment within a year of the date of execution (signature), the Sub Registrar will accept the deficit stamp duty and validate appropriately on the document with no penalty.

12. Is stamp duty deductible with regard to a sale deed executed in favour of a mortgage on the same property?

    Yes, there is a deduction for the amount of duty paid on the mortgage deed.