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Stamp Duty and Registration Charges in Bangalore

About Stamp Duty & Property Registration Charges

Stamp duty and home registration charges are crucial components of property pricing. These charges tend to influence the purchasing power of an intending homebuyer.

Recently to boost real estate sales in the state and to make a residential property more affordable, the state government of Karnataka has reduced the stamp duty charges.

Accordingly, properties priced between Rs.35 lakh and Rs.45 lakh will be subject to a stamp duty of 3% subsequently. Previously, properties priced in the same range were subject to a 5% stamp duty in Bangalore.

With or without the rate cuts, it is important for intending homebuyers to find out the applicable stamp duty and flat registration charges in Bangalore. Moreover, it is indispensable information if one plans to avail of a home loan  to purchase a property in Bangalore.

What is Stamp Duty?

Under Section 3 of the Indian Stamp Act, 1899, the government makes property charges and stamp duty charges mandatory. These charges are levied to authenticate a property’s sale agreement. Also, stamp duty and property registration charges in Bangalore are levied to maintain property records.

The said charges are fixed and imposed by the state government. Since registration and stamp duty in Bangalore impact the cost of purchasing a property, it is important to find out about them in advance.

What is the Stamp Duty on Property in Bangalore?

Take a look at this table below to gain insight into stamp duty and registration charges in Bangalore.

Registration Charges and Stamp Duty in Bangalore

Gender of Property Owner Plot Registration Charges in Bangalore Stamp Duty Charges in Bangalore
Male and Female 1% of property value

2% on property worth less than Rs.20 lakh

3% on property worth between Rs.21 lakh and Rs.45 lakh

5% on property worth more than Rs.45 lakh

Joint Owners (Male + Female/Female + Female/Male + Male) 1% of property value

2% on property worth less than Rs.20 lakh

3% on property worth between Rs.21 lakh and Rs.45 lakh

5% on property worth more than Rs.45 lakh

 

Besides stamp duty, homebuyers in urban areas have to pay a 10% cess and a 2% surcharge on properties worth more than Rs.35 lakh. In the case of properties in rural areas, the applicable surcharge is 3%.

How are Stamp Duty Charges Calculated?

Follow these simple steps to compute stamp duty in Bangalore:

Step 1: Log on to the official website of the department of stamps and registration of Karnataka.

Step 2: Navigate to the ‘Calculator Prerequisites.’

Step 3: elect the suitable 'Nature of Document' from the drop-down menu.

Step 4: Enter property details such as city corporation, region type, town panchayat, or gram panchayat

Step 5: Enter indicative market value and consideration amount.

You can click on the 'Calculate Market Value' link to determine the same.

After these steps are covered, the calculator will display vital details such as – stamp duty charges, surcharge, total stamp duty, cess, and Bangalore property registration charges.

Individuals finding this calculation cumbersome can use a Stamp Duty Calculator in Bangalore to estimate such expenses instantly.

Factors Influencing Stamp Duty Charges

Several factors tend to impact stamp duty charges. The most prominent ones are discussed in brief:

Factors Impact
Property’s Age Older properties attract lower stamp duty
Property’s Nature Commercial properties attract higher stamp duty
Buyer’s Age Senior citizens are entitled to pay lower stamp duty
Property’s Location> Properties located in urban areas attract higher stamp duty
Amenities and Services Properties furnished with more amenities come with higher stamp duty

 

In some states, women are entitled to pay lower stamp duty. However, men and women pay the same stamp duty in Bangalore. Find out the applicable rates and charges for better financial planning.