While purchasing a house, one must also bear in mind stamp duty and property registration charges 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:
|Type of fee||Amount|
|Registration charge||1% of the property value|
|BBMP, BMRDA & Village Areas Added Cess||10% on the stamp duty|
|Stamp duty||5.6% of the property value|
|BBMP & Corporation Added Surcharges||2% on stamp duty|
|BMRDA & other Surcharges||3% on stamp duty|
Let us say that a plot in a urban area in Bangalore costs Rs.5,000 per square feet as per BBMP. Therefore, any property sold in this area cannot go below Rs.5,000. However, properties can be sold above this value.
Stamp Duty & Property Registration Charges
Therefore, the guidance value of the property will be Rs.5,000 times 1000 = Rs.50,00,000.
Stamp Duty Charges will be 5.6% of saleable value (Rs.50,00,000 lakh) = Rs.2,80,000.
Registration Charges will be 1% of saleable value (Rs.50,00,000 lakh) =Rs.50,000.
The total Stamp Duty and Registration charges will be Rs.2,80,000 + Rs.50,000 = Rs.3,30,000.
Therefore, Mr. Raghav has to pay a total of Rs.50,00,000 + Rs.3,30,000 = Rs.53.30,000 to obtain the property.
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’.
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.
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