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:
|Serial Number||Description of document||Stamp Duty Fee||Registration Fee|
|3||Agreement pertaining to the selling of real estate|
|(i) with possession||5% on the market value||1%|
|(ii) without possession||0.1% on the market value equal to the amount of consideration Min: Rs.500 Max: Rs.20,000||Rs.20|
|(iii) Joint Development Agreement||1% subject to a maximum of Rs.15 Lakhs||1% subject to a maximum of Rs.1.5 lakh|
|4||Agreement relating to Deposit of Title Deeds (D.T.D)||0.1% Min: Rs.500 Max: Rs.50,000||0.1% Min: Rs.100 Max: Rs.10,000|
|5||a) Revocation of any previously signed document on which stamp duty has been paid in accordance with any article of the schedule||Similar to the original instrument's responsibility As long as the original document is a conveyance on sale and the stamp duty is in accordance with article 20(1)||Rs.100 or 1% on the market value if it is cancellation of conveyance|
|b) In favour of Government or Local Authorities||Similar to the original instrument's responsibility As long as the original document is a conveyance on sale and the stamp duty is in accordance with article 20(1)||Rs.100 or 1% on the market value if it is cancellation of conveyance|
|c) In any other case||Rs.100||Rs.100|
|6||Conveyance (including flats/apartments)||5% on the market value+ Surcharge + additional duty||1%|
|Conveyance by BDA / KHB||5% based on the factors mentioned in the document + Surcharge + Additional duty||1%|
|Conveyance on Transferable Development Rights (TDR)||1% on the market value or factors mentioned in the document whichever is higher + Surcharge + Additional duty||1%|
|7||Exchange||5% on the market value on the higher value of the two + Surcharge + Additional duty||1%|
|(i) If Donee is not a member of the family of donor||5 % on the market value+ Surcharge + Additional duty||1%|
|(ii) If Donee is a specified member of the family of donor||Rs.1000 + surcharge & Additional duty||Rs.500 fixed|
|9||Lease of immoveable property / License|
|(i) Up to 1 year residential||0.5% on the average annual rent (AAR) + Advance + Premium + Fine. Max.500||Rs.100/-|
|(ii) Up to 1 year commercial and industrial||0.5% on the average annual rent (AAR) + Advance + Premium + Fine||Rs.5 for every Rs.1,000 or part thereof
|(iii) More than 1 year but less than 10 years||1% on AAR + Advance + Premium + Fine||Rs.5 for every Rs.1,000 or part thereof|
|(iv) More than 10 years but less than 20 years||2% on AAR + Advance + Premium + Fine||Rs.5 for every Rs.1,000 or part thereof|
|(v) More than 20 years but less than 30 years||3% on AAR + Advance + Premium + Fine||Rs.5 for every Rs.1,000 or part thereof|
|(vi) More than 30 years or perpetuity or not for definite term||As per Art 20(1) on Market value or AAR+ advance + premium + deposit + fine whichever is higher||1%|
|Lease of immoveable property between members of a family||Rs.1,000/-||Rs 500/-|
|(i) If possession of property is given||5% on the amount + surcharge||1%|
|(ii) If possession of property is not given||0.5% + Surcharge||0.5% Maximum of Rs.10,000/|
|11||(a) (i) For Non-Agriculture (converted) Property situated in Municipal Corporation or Urban Developmental Authorities or Municipal Councils or Town Panchayats area||Rs.1,000 per share||Rs.500 per share|
|(ii) Other than the above||Rs.500 per share||Rs.250 per share|
|(b) Agri Land||Rs.250 per share||Rs.50 per share|
|(c) Movable property||Rs.250 per share||Rs.100 per share|
|(d)Combination of above||Maximum of above per share||Maximum of above per share|
|12||Power of Attorney|
|Regarding the registration of the execution of one or more papers||Rs.100/-||Rs.100/-|
|Allowing multiple people to act in a single transaction||Rs.100/-||Rs.100/-|
|Allowing a maximum of five people to operate in a single transaction or generally||Rs.100/-||Rs.100/-|
|Approving more than five but no more than ten people for multiple transactions or generally||Rs.200/-||Rs.100/-|
|When giving permission for the attorney to sell any real estate for consideration or with interest||5% on the market value or consideration amount whichever is higher||1%|
|When given to a developer or a promoter||1% on market value of Property or consideration whichever is higher. Maximum : Rs.15 lakh||1% Maximum: Rs.1.5 lakh|
|When granted to anyone other than the executant's father, mother, wife, son, daughter, brothers, or sisters, allowing that individual to sell real estate located in the state of Karnataka||5% on the market value of the property||1%|
|In any other case||Rs.200/-||Rs.100/-|
|13||Re-conveyance of mortgage property||Rs.100/-||Rs.100/-|
|(i) Where release is not between the members of the family||5% on market value or consideration whichever is higher||1% on market value or consideration whichever is higher|
|(ii) Where release is between the members of the family||Rs.1000/-||Rs.500/-|
|(i) If disposition of property is not among the members of the family||5% on the market value + Additional duty||1% on the market value|
|(ii) If disposition of property among the specified members of the family||Rs.1000 + Additional duty||Rs.500/-|
|(iii) Cancellation of Settlement||Rs.200/-||Rs.100/-|
|(a) Where the remaining period is less than 30 years||5% on the consideration||1% on the consideration|
|(b) Where the remaining period is more than 30 years||5% on the market value||1% on the Market value|
|(i) Concerning any funds or sums that the author has transferred to the trust as corpus, a declaration of trust||Rs.1000/-||1%|
|(ii) Concerning any immovable pro Regarding any real estate that the author owns and transfers to the trust for which they serve as the only trustee||Rs.1000/-||1%|
|(iii) Regarding any real estate that the author owns and has transferred to a trust but for which the author is neither a trustee nor one of the trustees||5% (under article No. 20(1))||1%|
|(iv) Cancellation of Trust||Max. Rs.200/-||Rs.100/-|
|Cancellation of Will||Rs.100/||Max. 200|
|Deposit of a Sealed Cover containing a will||Nil||Rs.1000/-|
|a) Sealed Cover withdrawal||Nil||Rs.200/-|
|b) Opening sealed Cover charges||Nil||Rs.100/-|
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’.
The following methods can be used to pay stamp duty and registration charges in Bangalore at the sub-registrar office:
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.
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.
Stamp Duty & Property Registration Charges
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.
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.
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.
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.
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).
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%.
For flats in Bangalore, the registration value is calculated based on the super built-up area.
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.
Stamp duty is usually calculated based on the super built-up area in Bangalore.
No, the loan amount is subject to stamp duty payment. There is no need to pay duty on interest that has accrued.
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.
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.
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.
Yes, there is a deduction for the amount of duty paid on the mortgage deed.
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