Stamp Duty and Registration Charges in Bangalore (2024)
The process of property buying in the most vibrant Indian city for real estate, Bangalore is not straightforward legally, but its stamp duty and registration charges would be considered at two essential costs. It gets collected by the state government towards the confirmation that the legal verification of property transfer does actually get into formal records. Being in the Bangalore market, a first-time home buyer should have it all sorted for unexpected shocks to create an ideal plan for your purse.
We shall guide you through everything you need to know about stamp duty and registration charges in Bangalore for 2024—including how they’re calculated, current rates, and how to pay them.
What Are Stamp Duty and Registration Charges?
Stamp duty and registration charges are both forms of taxes to be paid while buying or transferring ownership of any property.
Stamp Duty is something you pay towards the government just to authenticate the transfer of property, and it is a way of “official” tax approval for your real estate transaction
Registration Charges are the charges taken to register an official transaction with a sub-registrar. This creates a public record of the conveyance, in other words.
These are essential since without them, the property transfer cannot be viewed as legally effective. Failure to pay them will trigger serious issues in the long run.
What Factors Determine Stamp Duty Rates?
Stamp duty is not one-size-fits-all because the rates change with several considerations including:
- Property Value: The higher the value of the property, the greater the stamp duty
- Type of Property: Residential, Commercial, and Industrial vary in the stamp duty.
- Location: The rates for urban areas are generally higher than that for rural areas.
- Buyer’s Gender: Sometimes, stamp duty rates are discounted for female buyers.
- These considerations apply in Bangalore’s home state of Karnataka. Now, let’s analyze stamp duty and registration charges for different types of properties in Bangalore.
For Residential Properties:
For Men:
- Above ₹45 lakh: 5%
- ₹21 lakh to ₹45 lakh: 3%
- Up to ₹20 lakh: 2%
For Women:
- Above ₹45 lakh: 5%
- ₹21 lakh to ₹45 lakh: 3%
- Up to ₹20 lakh: 2%
For Commercial Properties:
Stamp duty for commercial properties like offices, business complexes, hospitals, and schools is 5% of the higher value between the sale price and market value. Additional 10% cess and a 2-3% surcharge depend upon the location (urban or rural) of the property.
For Industrial Properties:
Stamp duty on industrial properties, such as factories, is 5% of the higher value, that is, sale price or market value, along with an additional 10% cess and a 2-3% surcharge depending upon the location. The registration charge for industrial properties is 1% of the higher value.
Registration Charges for All Property Types:
In Bangalore, the registration charges for all types of properties, whether residential, commercial, or industrial, are 1% of the property value, based on the higher of the sale price or market value.
Surcharge on Stamp Duty in Bangalore
In Bangalore, properties priced above ₹35 lakh attract a surcharge on stamp duty:
- 2% surcharge for properties in urban areas
- 3% surcharge for properties in rural areas
Besides, a 10% cess is levied on the stamp duty for properties over ₹35 lakh.
Recent Updates to Stamp Duty for Other Legal Instruments
In December 2023, the Karnataka government has revised the stamp duty for other legal instruments. This includes changes in the following documents:
- Adoption Deeds: Increased from ₹500 to ₹1,000
Affidavits: The fees now range from ₹20 to ₹100
Powers of Attorney: Increased from ₹100 to ₹500 (more than five authorizations, the fee is now ₹1,000)
Conveyance Deed for Amalgamation of Companies: Increased to 5% from 3%
How do you calculate stamp duty and registration charges in Bangalore?
How do you calculate stamp duty and registration charges in Bangalore?
Here’s a quick guide to help you calculate the stamp duty and registration charges on a property:
- Identify the property type (residential, commercial, or industrial).
Determine the location (urban or rural area).
Calculate the property value: Use either the sale price or the market value—whichever is greater.
Apply the applicable stamp duty rate depending upon the value of the property and its type.
Add 1% as registration charges. - Example Calculation:
For a ₹50 lakh residential property bought by a male:
Stamp Duty: 2% of ₹50,00,000 = ₹1,00,000
Registration Charges: 1% of ₹50,00,000 = ₹50,000
Total Charges = ₹1,00,000 (Stamp Duty) + ₹50,000 (Registration) = ₹1,50,000
For a ₹1 crore commercial property:
Stamp Duty: 5% of ₹1,00,00,000 = ₹5,00,000
Registration Charges: 1% of ₹1,00,00,000 = ₹1,00,000
Total Charges = ₹5,00,000 (Stamp Duty) + ₹1,00,000 (Registration) = ₹6,00,000
How to Pay Stamp Duty in Bangalore: Online vs Offline
Online Payment:
Pay stamp duty online. It is a hassle-free process. Here’s how:
Go to the Kaveri Online website.
Create an Account and Fill out the application
Enter your details, choose ‘Stamp Duty and Registration’ for the department type, and select ‘Stamp Duty’ and ‘Sale Agreement’ as sub-purposes.
Enter the duty amount, choose a payment method, and complete the captcha.
After submitting, you’ll receive a challan that is valid for 90 days.
Offline Payment:
To pay stamp duty offline:
- Visit the sub-registrar’s office with all necessary documents.
Ensure that both the buyer and seller (and any required witnesses) are present.
For stamp duties more than ₹2,000, purchase impressed stamps from the approved sellers or cheque/demand draft from the nationalized bank.
After all verification, the staff of the office will issue a property registration certificate.
Conclusion
Understanding stamp duty and registration charges is a critical part of any property transaction in Bangalore. These charges can significantly impact your overall budget, so it’s important to factor them in when making your purchase decisions. By staying up to date with the latest rates for 2024, you’ll be able to navigate the Bangalore property market with ease and avoid any surprises.
Whether you’re buying your first home or investing in a commercial or industrial property, always be sure to check the latest stamp duty and registration rates. With this knowledge, you’ll be better prepared to plan your finances and ensure a smooth transaction.
For further details, do visit the official Karnataka government portals or consult with a legal expert before proceeding with any property transaction. Well, happy buying!
Reference: Kaveri Service Online | Kaamdheno Residential Property – by Gajrajah Buildcon