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In this article, we discuss how much money you will have to pay as stamp duty and registration charge in Karnataka in 2021 if you are buying a property in cities like Bengaluru. However, before we proceed with that, we need to know what stamp duty is.
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 and registration charges in Bangalore/ Karnataka 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.
As mentioned earlier, homebuyers have to pay registration charges on property purchases in Karnataka. Buyers in Karnataka 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.
Stamp duty for women in Bangalore in 2021
|Case||Stamp duty rate in Karnataka
||Registration charges in Bangalore/ Karnataka|
|When a man, woman or joint owners (regardless of gender) buy the property||3% on properties of up to Rs 45 lakhs.
2% on properties less than Rs 20 lakhs.
|1% of the property value|
Stamp duty rates in Bangalore in 2021 are the same for men and women, unlike in most other Indian states.
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Surcharge on stamp duty
Besides stamp duty in Karnataka, you will have to reserve a budget for the cess and surcharge as part of the property registration charges in Bangalore and other cities within the state. 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 2: The Karnataka 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.
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.
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Type of property and area taken into consideration to calculate stamp duty
|Property type||Area taken for calculation purposes|
|Multi-storey apartments||Super built-up area|
|Plots||Sq ft area of plot multiplied by current guideline value|
|Independent houses||Total constructed area|
Factors involved in stamp duty charges
|Factor||How it impacts|
|Age of the property||Older properties are cheaper|
|Age of the buyer||Senior citizens need to pay lower stamp duty|
|Gender of owner||In most states, women pay lower stamp duty. In Bangalore, rates are the same for both men and women.|
|Nature of property||Higher stamp duty for commercial properties.|
|Location of property||Properties in urban areas command higher stamp duty|
|Amenities and services||More amenities mean higher stamp duty.|
Note that there are many factors that determine stamp duty charges. These also impact the house or flat registration charges in Bangalore and other cities, which homebuyers need to consider.
Check out price trends in Bangalore
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.
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.