Stamp duty charges and registration charges in Karnataka in 2021


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 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.

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

 

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%.

See also: All you need to know about Kaveri Online Services

 

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 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.

 

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 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.

 

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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