While investing in real estate you must know the different charges associated with the purchase. Stamp duty and registration charges are some of these mandatory charges which have been mandated according to Section 3 of the Indian Stamp Act of 1899. The stamp duty is collected to make the transaction of the property legally valid and to record the same in the government records.
The state government is responsible to fix the stamp duty charges and is an important source of income for the state government. Stamp duty is the tax imposed on the purchase of the property based on the market value of the property. These additional costs add up to the total cost of the property and thus you must know these stamp duty implications before purchasing the property. The stamp duty charges have been revised by the government of Karnataka due to the pandemic conditions in their annual budget of 2021-22. Let’s discuss the stamp duty implications on different properties in Bangalore further.
Factors considered in calculating the stamp duty
Some of the common factors which help in determining the stamp duty on the property include:
The age of the property
As the stamp duty implications are decided on the total value of the property, the age of the property plays a very important role in determining the stamp duty charges on a property. Let’s take an example of a new and the old building. The price of the property will be more for the new building than the old building. Thus, in this case, the age of the property becomes important in determining the actual value of the property.
Age and gender of the property holder
The age of the property holder is yet another important factor to be considered while deciding the stamp duty implications as in most of the states, the tax imposed on properties owned by senior citizens is lower.
Like age, gender is also another important factor to be considered while calculating your stamp duty charges. When a property is purchased in the name of a woman, the stamp duty is subsided to encourage property ownership in women.
Location of the property
The location of the property also plays a vital role in determining the value of the property. The stamp duty imposed on the property is higher in case the property is situated in the urban areas and lower in case the property is situated in the rural or suburban area.
Stamp duty in Bangalore
The stamp duty has been revised recently. The stamp duty imposed on properties in Bangalore applies to men and women equally. The following table provides a better understanding of how the division of stamp duty is applicable on your property.
Type of property
Properties above Rs 45 lakhs.
Properties price between Rs 35 lakhs to Rs 45 lakhs
Properties priced between Rs 20 lakhs to Rs 35 lakhs
Properties less than Rs 20 lakhs
While reserving money to meet these costs of purchase, also make sure to set some for the cess and the surcharge. You are required to pay a cess of 10% and a surcharge of 2% on properties that are priced above Rs. 35 Lakhs. If the property is situated in the rural region then you are required to pay a stamp duty of 5.65% as the surcharge payable is at 3%.
How to calculate stamp duty in Bangalore
To calculate your stamp duty charges, follow the step provided below:
Step I: Log into the official website of the Kaveri.
Step II: To calculate the stamp duty imposed on properties, you are required to furnish few details such as the nature of documents and proceeds.
Step III: Fill in details such as the BBMP, City Corporation, Municipal Corporation, town panchayat, gram panchayat, etc. You can choose all this from the drop-down box provided on the website. Some of the other details to be provided include the market value and the consideration amount.
Step IV: Click on the ‘calculate market value’ option if you are not aware of it. Market value and the consideration value plays an important role in determining the stamp duty charges as it is calculated based on the market value or the agreement value whichever is higher.
Step V: After you have filled in all these details, the calculator will indicate your stamp duty charges, surcharges, cess, and your total stamp duty and registration fee on your property.
Stamp duty and registration charges are two mandatory expenses while purchasing the property. The buyer of the property is required to furnish these changes to get legal ownership of the property and register the property under his name in the government records. It is only the registered documents that will have legal validity in the court of law as well. Thus it is very important that you set aside funds to furnish these charges.
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Bangalore Stamp Duty & Registration Charges FAQ's:
The stamp duty charges in Bangalore depend on the price of the property. The stamp duty is 5% for properties above Rs 35 lakhs while it is 3% for properties between Rs 21 lakhs-35 lakhs and properties priced between Rs 35 lakhs to Rs 45 lakhs. The stamp duty for properties below Rs 20 lakhs stands at 2% of the market value as well. The registration charges in Bangalore are at 1%of the market value.
You can calculate the stamp duty charges by visiting the official portal of Kaveri and entering all the necessary details of your property.
You do not have to pay GST on stamp duty. Stamp duty is the tax that is payable on the purchase of commercial or residential property.