Stamp duty charges and registration charges in Bangalore, Karnataka


Stamp duty charges in Bangalore have been reduced from 5% to 3%, for properties in the affordable segment, up to Rs 45 lakhs

In this article, we discuss how much money you will have to pay as stamp duty and registration charge, if you are buying a property in Bangalore. However, before we proceed with that, we need to know what stamp duty is.

 

Stamp duty in Bangalore

Stamp duty is the legal fee that the buyer pays to the sub-registrar of the area where the property is located, to get the property registered under his name in government’s records. Stamp duty is a levy decided by state governments.

 

Stamp duty charges in Bangalore in 2021

The Karnataka assembly, on September 20, 2021, passed an amendment to the Stamp Act, 1957, under which the state has cut stamp duty on properties priced between Rs 35 lakhs and Rs 45 lakhs to 3% from the earlier 5%. The reduced rates are applicable only on registration of new properties. The Karnataka government had announced the decision to cut the stamp duty on July 22, 2021. In 2019, the stamp duty was rationalised from 5% to 2%, for properties of up to Rs 20 lakhs.

 

Stamp duty for women in Bangalore

Stamp duty rates in Bangalore are the same for men and women, unlike in most other Indian states.

CaseStamp duty rateRegistration charges
When a man, woman or joint owners (regardless of gender) buy the property3% on properties of up to Rs 45 lakhs.

2% on properties less than Rs 20 lakhs.

1% of the property value

See also: Bangalore master plan: Everything you need to know

 

Property registration charge in Bangalore in 2021

Buyers in Bangalore have to pay 1% of the deal value as the registration charge. Note that the registration charge is over and above the stamp duty charge.

 

Surcharge on stamp duty in Bangalore

Besides stamp duty, you will have to reserve a budget for the cess and surcharge. For properties priced above Rs 35 lakhs, a cess of 10% and a surcharge of 2% are applicable. This is in the case of urban areas. So, effectively, you will be paying 5.6% as stamp duty. In the case of rural areas, a home buyer pays 5.65% as the stamp duty, because the surcharge is 3%.

 

How to calculate stamp duty in Bangalore

Step 1: Simply log on to the Kaveri Online Services website or click here to be directed to the page.

Step 2: The stamp duty calculator has certain prerequisites. Fill in the nature of the document and proceed. In this case, we have selected ‘sale of flat’ as the nature of the document.

 

Stamp duty and registration charges in Bangalore

 

Step 3: You will be asked to fill in property details such as region type – whether BBMP, city corporation, municipal corporation, town panchayat, gram panchayat, or others. You can choose this from the drop-down menu.

Other details to be included are the indicative market value and the indicative consideration amount. What is the indicative consideration amount? To arrive at the stamp duty rates and charges, the market value is the value as worked out as per the consideration (or ready reckoner, or stamp duty) mentioned in the document, whichever is higher. If the consideration value is higher, this will be taken into account to calculate stamp duty.

If you are unaware of the market value, you can also calculate it at this stage using the calculator provided. Simply click on ‘Calculate market value’ to proceed.

Once you have filled in the details, the calculator will show you the indicative stamp duty charges, surcharge, cess, total stamp duty and total registration fees for your property.

 

Stamp duty and registration charges in Bangalore

 

See also: All about Karnataka Bhoomi RTC Portal

 

Type of property and area taken into consideration to calculate stamp duty

Property typeArea taken for calculation purposes
Multi-storey apartmentsSuper built-up area
PlotsSq ft area of plot multiplied by current guideline value
Independent housesTotal constructed area

 

Factors involved in stamp duty charges

Note that there are many factors that determine stamp duty charges.

FactorHow it impacts
Age of the propertyOlder properties are cheaper
Age of the buyerSenior citizens need to pay lower stamp duty
Gender of ownerIn most states, women pay lower stamp duty. In Bangalore, rates are the same for both men and women.
Nature of propertyHigher stamp duty for commercial properties.
Location of propertyProperties in urban areas command higher stamp duty
Amenities and servicesMore amenities mean higher stamp duty.

Check out price trends in Bangalore

 

E-stamping may replace franking in Bangalore

The Karnataka state government may make electronic stamping (e-stamping) mandatory, doing away with physical franking of documents altogether. Both procedures are modes through which the state government collects stamp duty for various transactions. Franking is done at the sub-registrar’s office but e-stamping, which was launched in 2008, is a much simpler process. The documentation is stored in a digital form in a central data bank for verification purposes. All applicants, in case of e-stamping, are given a unique certificate number, thereby, ensuring that chances of fraud are next to nil.

It is interesting to note that franking was brought in after the stamp paper scam of 2001. However, this process did not turn out to be foolproof either and the state government suffered revenue loss. By December 2020, the registration department earned Rs 6,799 crores but the authorities believe that this number could have been higher. Of late, franking fraud has become common. It is to avoid such problems that the state government may make e-stamping mandatory.

Check out properties for sale in Bengaluru.

Is stamp duty calculated on carpet area basis in Bangalore?

Even though properties now have to be sold on the basis of carpet area under the provisions of the RERA, the stamp duty on property in Bangalore is typically calculated on the super built-up area. In case of independent houses, the total constructed area is used to calculate stamp duty in Bangalore.

 

Stamp duty charges and registration charges in Bangalore: Latest updates

September 21, 2021

Karnataka state legislative assembly passes amendment on stamp duty reduction 

Making an amendment to the Stamp Act, 1957, the Karnataka state legislative assembly, on September 20, 2021, passed a bill on reducing the stamp duty on flats priced between Rs 35 lakhs and Rs 45 lakhs to 3% from the existing 5%. However, the advantage of this 2% reduction will only be applicable on first-time registration of properties. With the mayhem caused by the Coronavirus pandemic, this move is expected to be a win-win situation for both, the realty segment and LIG families. Going forward, the government may examine a duty cut on properties across other price ranges too.

 

FAQs

Who pays stamp duty, the buyer or seller?

Starting July 1980, the buyer must pay stamp duty on the market value of the immovable property.

Which cities have high stamp duty rates?

Chennai, Kerala and Hyderabad are among cities that have a high stamp duty, in the range of 7% to 9%.

How much is the BBMP & Corporation added surcharges?

It comes to 2% on stamp duty.

 

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