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  • Bangalore Stamp Duty & Registration Charges

    Bangalore Stamp Duty & Registration Charges

    It is crucial to take into account not only the price of the actual property but also any additional costs that may arise, such as Stamp Duty and Property Registration Fees, when you are in the process of purchasing a home in Bangalore. The government imposes these fees in order to formalize the sale agreement and maintain ownership records for the property.

    Section 3 of the Indian Stamp Act, passed in 1899, sets forth the rules governing Stamp Duty and Property Registration Fees. Although this law is applicable nationwide, the actual fees that are assessed can change depending on the state where the property is located. Before moving forward with the purchase of a property, it is crucial to comprehend the specific fees that are applicable in the state of Karnataka, where Bangalore is situated.

    These fees are necessary to make sure that the property sale is legitimate and that the government keeps a record of the transaction. This is crucial because it offers accurate and official documentation of the property transfer, which is important for both the buyer and the seller.

    The fees are determined by the state government and can change depending on a number of elements, including the property’s value and location. They are typically calculated as a percentage of the property’s sale price, and as a result, they can add up to a sizeable additional cost for the buyer.

    Bangalore’s registration and stamp duty fees are as follows:

     

    Type of fee

    Amount

    Registration charge

    1% of the property value

    BBMP, BMRDA & Village Areas Added Cess

    10% on the stamp duty

    BBMP & Corporation Added Surcharges

    2% on stamp duty

    BMRDA & other Surcharges

    3% on stamp duty

    Adoption deed

    Rs.500

    Affidavit

    Rs.200

    Agreement relating to sale of property with possession

    5% of the market value

    Agreement relating to sale of property without possession

    0.1% of the market value (Minimum: Rs.500 and maximum: Rs.20,000)

    Deposit of titles deed related agreement

    0.1% of the market value (minimum: Rs.500 and maximum: Rs.50,000)

    Surrendering of lease

    Rs.100

    Mortgage property re-conveyance

    Rs.100

     

    Amount

    Stamp Duty Charges

    Less than Rs 20 Lakh

    2.00%

    Between Rs.21 – Rs.35 lakh

    3.00%

    Above Rs.35 lakh

    3.00%

     

    Factors that influence stamp duty charges:

    The age of the property, the age of the property owner, the owner’s gender, the use of the property, the property’s location, and the amenities offered all play a role in determining stamp duty rates. 

    • First of all, because stamp duty is based on the total value of the property, the age of the property is a crucial factor in determining the charges. Generally speaking, older homes are less expensive than newer homes, which results in a lower stamp duty fee.

    • Second, the age of the property owner is taken into consideration; in most states, senior citizens typically pay a lower stamp duty fee. This is so because the property owner’s age affects their ability to pay the stamp duty fees.

    • Thirdly, India also takes gender into account when calculating stamp duty rates. Men typically pay about 2% more in stamp duty than women do, with women typically paying a subsidised rate.

    • Fourth, another significant factor in determining the amount of stamp duty is the use of the property. Due to the fact that commercial buildings require more amenities and services than residential buildings, commercial properties typically have higher stamp duty fees than residential properties.

    • Fifthly, the location of the property is also a determining factor in stamp duty charges, with properties located in urban areas attracting a higher stamp duty fee than those located in rural or sub-urban areas. This is due to the fact that homes in cities typically have higher market values.

    • Last but not least, the amenities offered by the property also influence the costs associated with stamp duty. A higher stamp duty fee is charged on properties with more amenities, such as libraries, swimming pools, gyms, sports areas, lifts, and other facilities, while a lower stamp duty fee is charged on properties with fewer amenities. This is so that the market value of the property can increase as more amenities become available.

    Calculating Stamp Duty Charges in Bangalore and Government Proposal for Reduction in Charges for Affordable Housing

    How to Determine Bangalore’s Stamp Duty Rates?

    Knowing the stamp duty fees associated with a property is crucial if you’re planning to buy one in Bangalore. The steps to calculating stamp duty fees are as follows:

    Step 1: Visit the website https://kaverionline.karnataka.gov.in/StampDutyCalculator/StampDutyCalculation

    Step 2: From the dropdown menu, choose the document’s nature.

    Step 3: Click on the ‘Proceed’ button.

    Step 4: Provide the required information about the property.

    Step 5: To get an estimate of the stamp duty costs, click the “Calculate” button.

    The stamp duty charges may be influenced by factors such as the location, type of property and its value, age of the property, amenities, and gender of the owner.

    Proposal for Reduction in Stamp Duty Charges for Affordable Housing

    The state government of Karnataka has proposed lowering stamp duty charges for affordable housing in Bangalore. According to the proposal, homes in the affordable housing segment priced between Rs.35 lakh and Rs.45 lakh will be subject to a 3% stamp duty charge, a reduction from the current charges.

    This reduction in stamp duty charges may boost sales of affordable housing units, which account for nearly half of the country’s unsold inventory.

    In Bangalore, how are stamp duties calculated?

    • According to the BBMP, a plot in an urban area in Bangalore costs Rs.5,000 per square foot.

    • The property’s estimated value is Rs.5,000 multiplied by 100 = Rs.50,000.

    • Mr. Lalith wishes to purchase a 1000-square-foot property for Rs.5,000 per square foot.

    • Stamp Duty Charges will be 5.6% of saleable value (Rs.50,00,000 lakh) = Rs.1,50,000.

    • Registration Charges will be 3% of saleable value (Rs.50,00,000 lakh) = Rs.50,000.

    • The total Stamp Duty and Registration charges will be Rs.1,50,000 + Rs.1,50,000 = Rs.2,00,000.

    • Therefore, the total amount Mr. Lalith has to pay to obtain the property is Rs.50,00,000 + Rs.2,00,000 = Rs.52,00,000.

    Bottom Line

    The extra expenses, like Stamp Duty and Property Registration Fees, should be considered when purchasing a home in Bangalore. These costs support maintaining accurate ownership records and helping to formalise the sale agreement. The value, location, amenities, age, and other characteristics of the property as well as the owner’s gender and age are taken into account when calculating the stamp duty fees. One can go to the government website and follow the instructions to figure out the stamp duty costs. 

     

    Additionally, the Karnataka state government has suggested lowering stamp duty fees for affordable housing in Bangalore, which would be advantageous to those looking for properties in this price range. An opportunity to invest in various commercial and residential real estate properties across India, including Bangalore, is offered by Assetmonk, a new age realty investment platform.

    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.

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