Stamp Duty & Registration Charges in Bangalore, Karnataka

A buyer must pay various taxes in addition to the amount paid to the seller of a property in order to legally acquire the said property. Stamp duty and registration fees for property registration are the most common of these costs.

These charges are mandated by the government under Section 3 of the Indian Stamp Act of 1899 and are collected to authenticate the sale agreement as well as to keep a record of the property.

All fees are set by the state government, and it is critical to understand these fees before making a purchase. This will almost certainly increase your home's expenses and varies by state.

In the following sections, we'll go over how much money you'll have to pay in stamp duty and registration fees if you buy a home in Bangalore, Karnataka.

Stamp Duty in Karnataka

In an effort to stimulate the property market, the Karnataka government reduced stamp duty Bangalore charges from 5% to 3% for properties priced between Rs. 21 lakhs and Rs. 35 lakhs in May 2020.

For properties worth up to Rs. 20 lakhs, the stamp duty was reduced from 5% to 2% in 2019. To address the concerns of those looking for property priced above Rs. 35 lakhs, homebuyers have asked for a 3% flat stamp duty charge on all properties above Rs. 21 lakhs.

The state government slashed stamp duty rates on homes worth under Rs. 35 lakh last year. You must pay 5% of the whole or registered property value (above Rs. 45 lakh) in stamp duty and 1% of the total or registered property value in registration fees in accordance with current rates.

But has the reduction in stamp duty made buying a property in Bangalore affordable?

Let's look at an example.

Assume the property costs Rs. 40 lakhs and the stamp duty is 5%, which works out to Rs. 2 lakhs. With a 3% stamp duty, the amount would be Rs. 1.20 lakhs only. This indicates that a reduction in the stamp duty rate lowers the overall cost of owning a property.

However, a reduction in stamp duty is insufficient to make homeownership affordable. According to a study by IIM, Bangalore, the registration fees have to be reduced as well.

Stamp duty and registration fee reductions are frequently feared by authorities as a threat to the government's revenue. However, according to a study conducted by the National Housing Bank, such reductions encourage those looking for low-cost housing to purchase the property.

Given that many more units would be built under the Housing For All 2022 scheme, these charges are usually paid by buyers of land or built property and range between 5% and 13%. It generates additional revenue and compensates for any revenue loss due to stamp and registration fees.

Registration Charges and Stamp Duty in Bangalore, Karnataka

Let us first look at the amount charged with respect to the types of fees:

  • Registration charge - 1% of the property value
  • BMRDA, BBMP, and village areas added cess - 10% on stamp duty
  • Corporation and BBMP added surcharges - 2% on stamp duty
  • BMRDA and other charges - 3% on stamp duty

In Bangalore, unlike in the majority of other Indian countries, stamp duty is the same for women and men.

Group Stamp duty charges Registration charges
Single male/single female/Joint (male + male or male + female or female + female)

5% on properties worth more than Rs 35 lakh.
3% on properties priced between Rs 21 lakhs and Rs 35 lakhs
3% off properties priced between Rs 35 lakhs and Rs 45 lakhs
2% on properties worth less than Rs 20 lakhs

1% of the estimated property value

Stamp Duty Surcharge in Bangalore

In addition to stamp duty, you will need to budget for the cess and surcharge, as mentioned in the section above. A 10% cess and a 2% surcharge apply to properties priced above Rs. 35 lakhs. This is also valid in the case of cities and urban areas. As a result, you will have to pay 5.6% in stamp duty. Because the surcharge is 3% in rural areas, a home buyer pays 5.65% as stamp duty.

How can I Calculate Registration Charges and Stamp Duty in Bangalore?

Different standards are used to calculate the registration fee and stamp duty for different property types.

Let us have a look at the standards in Bangalore:

  • The super built-up area is taken into account when calculating the cost of multi-story apartments.
  • In the case of plots, the sq ft area of the plot is multiplied by the current guideline value for that area.
  • The total constructed area is taken into account for independent houses.

Stamp duty rates are not fixed and are subject to change at any time. However, there are no set deadlines for the Karnataka government to revise these charges. The State government usually revises them once a year.

These fees are primarily determined by the current market rate of the property, the expansion of city limits, and the performance of the property market.

Given below are the steps to calculate stamp duty and property registration charges in Bangalore, Karnataka:

  • Step 1: Go to the Kaveri Online Services website or click here to go to the page.
  • Step 2: Fill in the nature of the document and then continue. In this case, we chose the nature of the document to be "sale of flat."
  • Step 3: Enter property information such as region type (BBMP, city corporation, municipal corporation, town panchayat, gram panchayat, or others). You can select this option from the drop-down menu.
  • Some other details that you will have to mention are the indicative market value and the indicative consideration amount.

    The market value is the value calculated as per the consideration (or ready reckoner, or stamp duty) mentioned in the document, whichever is higher, to arrive at the stamp duty rates and charges. If the consideration value is greater, this will be considered when calculating stamp duty.

    If you are unsure of the market value, you can calculate it now using the provided calculator. To proceed, simply click on the ‘Calculate market value' button.

    Once you've entered your information, the calculator will display the estimated stamp duty charges, surcharge, cess, total stamp duty, and total registration fees for your property.

Factors Determining Stamp Duty Charges

Let us take a look at the factors determining stamp duty charges:

  • The age of the property - Because stamp duty is calculated on the total value of the house or property, the age of a specific property is important in determining stamp duty charges. This is due to the fact that older properties are typically less expensive than newer properties.
  • Age of the property owner - In most states, senior citizens pay a lower stamp duty charge. As a result, the age of a property owner is important in determining stamp duty charges.
  • Gender of the owner - In India, women typically pay a lower stamp duty fee than men. Men end up paying roughly 2% more than women.
  • The purpose of the property - Commercial properties typically attract a higher stamp duty fee than residential properties. This is because commercial buildings typically require far more amenities than residential buildings.
  • Property location - The stamp duty fee payable by an individual is also determined by the location of the property. A property located in an urban area is subject to a higher stamp duty than a property located in a rural or suburban area.
  • Amenities - The number of amenities provided by a property determines the stamp duty fee. A building with more amenities necessitates a higher stamp duty fee, whereas a building with fewer amenities necessitates a lower stamp duty fee.

Stamp Duty and Registration Charges in Bangalore - FAQs

Beginning in July 1980, the buyer is required to pay stamp duty based on the market value of the immovable property.

Hyderabad, Chennai, and Thiruvananthapuram? are among the cities with high stamp duties ranging from 7% to 9%.

The surcharges are calculated at 2% on stamp duty.

The stamp duty charges are the same for both men and women in Bangalore.