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Apart from paying the amount to the seller of a property, a buyer is also liable to pay various taxes, to legally acquire the said property. The most common among these expenses, are stamp duty and registration charges on the property. 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 .
Karnataka announces stamp duty cut for affordable housing in 2021
In an attempt to give a boost to the property market, the Karnataka government on July 22, 2021, cut the stamp duty from 5% to 3%, for properties worth up to Rs 45 lakh. In 2019, the stamp duty was rationalised from 5% to 2%, for properties of up to Rs 20 lakh. In May 2021, stamp duty was cut to 3% from 5% for properties worth up to Rs 35 lakh.
Stamp duty charges in Bangalore in 2021
Stamp duty rates in Bangalore are the same for men and women, unlike in most other Indian states.
| Case | Stamp duty rate | Registration charges |
| 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 |
See also: Bangalore master plan: Everything you need to know
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.
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.
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 that determine stamp duty charges
Note that there are many factors that determine stamp duty charges.
| Determinant | 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. |
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.
Registration charges in Bangalore
For flats costing less than Rs 20 lakhs, the state government, in 2020, reduced the registration charges from 5% to 3%. This rate also applies to industries buying land or building. Trend watchers, however, suggest that this move would be helpful, only if properties priced up to Rs 50 lakhs are brought under its fold, given that there are very few properties priced under Rs 20 lakhs in Bangalore today.
FAQ
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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