Table of Contents
- Introduction
- What is Stamp Duty?
- Stamp Duty Rate In Bangalore
- Registration Charges in Bangalore
- Surcharge on stamp duty in Bangalore
- How Can You Pay Stamp Duty in Karnataka?
- How to Pay Stamp Duty in Karnataka Online?
- How to pay Stamp duty in Karnataka Offline?
- How to calculate Stamp Duty?
- Key points to check before making your stamp duty payment in Karnataka
- Refund Process for Stamp Duty in Bangalore/Karnataka
- Factors Affecting Stamp Duty in Karnataka
- What are the Tax Benefits On Stamp Duty and Registration Charges?
- Conclusion
- Faq's
Introduction
When you plan to buy a home in Bangalore, many need to take cognizance of the many taxes that a homebuyer has to pay to the government at several stages of the home-buying process. One such important tax is the stamp duty that has to be paid against a property purchase. The stamp duty is not a tax levied exclusively in Bangalore but is a charge determined and fixed by the respective state government.
Apart from stamp duty, a homebuyer also has to pay a registration charge along with the stamp duty.
So, if you are someone who plans to buy a home in Bangalore, this article will help you get a comprehensive detail about the stamp duty and registration charges in Bangalore 2024.
Before we jump onto the charges, let us refresh our memory by recalling what stamp duty is.
What is Stamp Duty?
If you are planning to buy a house in Bangalore, you have to pay the latest stamp duty.
A stamp duty is a tax that is paid to the State government when a property is transferred from one owner to another. It differs from state to state and is determined by the market value of the property you purchase. Your documents are stamped and legally valid only after paying stamp duty. In contrast, a registration charge is a fixed percentage that you must pay to register your property.
Stamp Duty Rate In Bangalore
| Property Cost | Stamp Duty Charges |
| Above Rs 45 Lakh | 5 percent |
| Between Rs 21 Lakh and Rs 45 Lakh | 3 percent |
|
Property up to Rs 20 lakh
| 2 percent |
Registration Charges in Bangalore
| Property Cost | Registration Charges |
| Above Rs 45 Lakh | 1 percent |
| Between Rs 21 Lakh and 45 Lakh | 1 percent |
| Up to Rs 20 Lakh | 1 percent |
Surcharge on stamp duty in Bangalore
In addition to the stamp duty in Karnataka, it's important to set aside a budget for the cess and surcharge when calculating property registration charges in Bangalore and other cities across the state. If the property is priced above Rs 35 lakh in urban areas, there is a cess of 10 percent and a surcharge of 2 percent. So essentially, the stamp duty amounts to 5.6 percent. However, for properties in rural areas, the stamp duty is 5.65 percent due to a higher surcharge of 3 percent for homes priced above Rs 35 lakh.
How Can You Pay Stamp Duty in Karnataka?
In Karnataka, Stamp duty of more than Rs 2000 can not be paid online. In case you are wondering that stamp duty for a property would anyway be higher than Rs 2000, you are right, however, stamp duty is also levied on other transactions too.
Here are two options through which you can pay your stamp duty
1) Through the purchase of impressed stamps from licensed vendors
2) Via Cheque or DD addressed to the government by a nationalized bank
If you want to pay stamp duty (up to Rs 2000) online then use this link https://k2.karnataka.gov.in/index_en.html
How to Pay Stamp Duty in Karnataka Online?
Step 1: Visit the official website of the Department of Stamps and Registration, Karnataka (https://kaverionline.karnataka.gov.in/Layout/Layout)
Step 2: Look for the Online Payment or E-Payment section on the website homepage
Step 3: Click on the option related to Payment of Stamp Duty.
Step 4: You will be directed to a new page where you need to select the type of document (e.g., Sale Deed, Gift Deed, Lease Deed, etc.)
Step 5: Enter the required details about the property, transaction, and parties involved.
Step 6: Calculate the stamp duty amount based on the details provided.
Step 7: Choose the payment method (net banking, credit/debit card, or other available options) and make the payment.
Step 8: After successful payment, you will receive a payment receipt and a digitally stamped document.
How to pay Stamp duty in Karnataka Offline?
Step 1: Go to the nearest sub-registrar office or the designated bank authorized to collect stamp duty.
Step 2: Procure the required stamp duty payment challan/form from the office or bank.
Step 3: Fill in the required details about the property, and transaction, along with parties involved in the form.
Step 4: Calculate the stamp duty amount based on the details provided and pay the amount in cash or through demand draft.
Step 5: After payment, you will receive a receipt as proof of payment.
How to calculate Stamp Duty?
To figure out the stamp duty for your property in Bangalore, follow these steps:
Step 1: Go to the Kaveri Online Services website or click on this link for direct access.
Step 2: Use the Karnataka stamp duty calculator, but make sure you have some details ready. Choose the nature of the document, such as the sale of flat.
Step 3: Provide property information like the region type (BBMP, city corporation, municipal corporation, town panchayat, gram panchayat, or others). Select from the drop-down menu. Also, input the indicative market value and indicative consideration amount. The indicative consideration amount is crucial it is the value determined based on the consideration, ready reckoner, or stamp duty mentioned in the document, whichever is higher. If the consideration value is higher, that will be used to calculate stamp duty.
Step 4: If you do not know the market value, the calculator can help you estimate it. Click on Calculate market value to proceed.
Step 5: Once you have filled in the details, the calculator will display the indicative stamp duty charges, surcharge, cess, total stamp duty, and total registration fees for your property.
Key points to check before making your stamp duty payment in Karnataka
- Ensure that the issuance date of stamp paper is within six months of the transaction date.
- Stamp all eligible assets before registration.
- All individuals involved in the transaction must sign the stamp paper.
- Once the adhesive stamp is removed during execution, it cannot be reused.
- For Gift Deed Registration Charges in Karnataka, when transferring to a non-family member, it involves 5 percent of the market value of the property plus surcharges and cess. Additionally, there is a 1 percent registration cost of Rs. 1000, along with surcharge and cess, and a fixed registration fee of Rs. 500 for a transfer to a family member.
Refund Process for Stamp Duty in Bangalore/Karnataka
In Bangalore, if a sales deed is canceled, you can request a refund of 98 percent of the paid stamp duty.
To initiate this process, submit the original agreement and cancellation deed along with the refund application.
Visit the nearest office of the sub registrar for specific guidance and requirements.
Factors Affecting Stamp Duty in Karnataka
Age and Gender: Senior citizens in Karnataka enjoy a reduced stamp duty rate, but there is no gender-based difference.
Property Location: Stamp duty rates tend to be higher in urban areas compared to other locations.
Property Age: The age of the property significantly influences stamp duty, with older homes typically having lower costs.
Basic Amenities: Properties with amenities like lifts and swimming pools incur higher stamp duty, contributing to an increased property value.
What are the Tax Benefits On Stamp Duty and Registration Charges?
Under Section 80C of the Income Tax Act of 1961, you can avail tax deductions on stamp duties and registration fees, with a maximum deduction of Rs 1,50,000. This benefit applies only to new homes, and commercial properties, residential plots, and resale properties are not eligible.
Stamp duty in Karnataka after December 11, 2023, revision (Other Services)
Adoption deed: Increased from Rs 500 to Rs 1,000
Affidavits: Increased from Rs 20 and up to Rs 100
Powers of attorney: Hiked from Rs 100 to Rs 500. When more than five but not more than 10 people are authorized by the PoA, stamp duty will be Rs 1,000 in place of the earlier Rs 200
Divorce papers: Hiked up from Rs 100 to Rs 500
Certified copies: Hiked from Rs 5 to Rs 20
Trusts: Increased to Rs 2,000 from the existing Rs 1,000.
Conveyance deed of amalgamation of companies: Hiked to 5 percent from 3 percent
Property partitions converted for non-agricultural purposes: Increased from Rs 1,000 per share to Rs 5,000 per share in urban areas, increased from Rs 500 per share to Rs 3,000 per share in gram panchayats, Increased from Rs 250 per share to Rs 1,000 per share in gram panchayats.
Conclusion
Understanding the intricacies of stamp duty and registration charges is vital for anyone planning to buy a home in Bangalore. These charges, determined by the state government, significantly impact the overall cost of property acquisition. While stamp duty is a tax paid to the government upon property transfer, registration charges are fixed percentages necessary for legal property registration.
Moreover, it is essential to consider additional factors such as surcharges, cess, and refund processes to navigate the property transaction smoothly. The availability of online and offline payment methods further facilitates the payment of stamp duty.
Furthermore, various factors like age, gender, property location, and amenities influence stamp duty rates in Karnataka. Additionally, understanding tax benefits under Section 80C of the Income Tax Act can provide financial relief to homebuyers.
By being informed about these aspects, prospective homebuyers can make well-informed decisions and navigate the property buying process in Bangalore with confidence and ease.
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