Stamp Duty & Property Registration Charges in Bangalore

stamp duty charges in bangalore — (Source: hdfcsales)

Recently, stamp duty and registration charges in Bangalore were reduced from 5% to 3% for assets in the price segment up to ₹ 45 lakhs.

Therefore, knowledge about stamp duty in Bangalore is essential if you wish to own property there.

What Are Stamp Duty Rates for Properties in Bangalore?

The government of Karnataka has reduced the stamp duty rates from 5% to 3% for properties valued under ₹ 35 lakh to ₹ 45 lakh. For properties valued under ₹ 20 lakh, applicable stamp duty charges in Bangalore are 2%.

Whereas, if the property's value falls between ₹ 21 lakh - ₹ 35 lakh, the stamp duty is 3%. The stamp duty charge is 3% for properties valued above ₹ 35 lakh.

Present Stamp Duty and Registration Charges in Bangalore

Let us look at the current stamp duty and registration charges in Bangalore –

What Is the Stamp Duty in Bangalore for Men and Women?

Gender	Stamp Duty Rate	Registration Charges
Woman, man or joint owners (notwithstanding gender)	3% if property value is up to ₹ 45 lakh 2% if property value is less than ₹ 20 lakh	1% of total property value

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What Is the Stamp Duty in Bangalore as Per Area Type?

Areas	Stamp Duty
Urban areas	5.6% (for properties more than ₹ 35 lakh)
Rural areas	5.65%

How to Calculate Registration Charges and Stamp Duty for a Property in Bangalore?

Stamp duty is calculated based on property value and circle rates. Circle rate is the minimum value under which you cannot buy a property in India. Stamp duty is primarily levied on a higher circle rate or property value.

This means, if the circle rate is ₹ 55, 00,000 and property value is ₹ 60,00,000, stamp duty will be applicable on the greater value, i.e. ₹ 60, 00,000.

Let us now calculate stamp duty and registration charges in Bangalore for a flat -

Area	Rate
Circle Rate	₹ 38,400 per sq. m
Flat Size	1, 500 sq. m
Total Value	₹ 5,76,00,000
Stamp Duty	5.6 % of ₹ 5,76,00,000= ₹ 32,25,600

The property registration charges in Bangalore can be calculated as well:

Area	Rate
Property Cost	₹ 5,76,00,000
Registration Charges	1% of ₹ 5,76,00,000 = ₹ 5,76,000

How to Use a Stamp Duty Calculator?

An online stamp duty calculator can be used to skip the manual calculation and to save time. Here are the steps to follow –

Step 1 – Visit the stamp duty calculator page on Kaveri Online Service portal.

Step 2 – From the drop-down menu, select Nature of Document.

Step 3 – Then select Region Type – municipal corporation, city corporation, gram panchayat, town panchayat, BBMP, or other.

Step 4 – Fill the Indicative Consideration Amount and Indicative Market Value.

Step 5 – Click on "Calculate", and the stamp duty charges in Bangalore will appear on the screen.

How to Pay Stamp Duty and Registration Fees in Bangalore?

Payment for stamp duty and registration charges in Bangalore can be in the office of the sub-registrar through the following methods –

Buying stamps from authorised vendors or the treasury.
Pay to the government through challan or scheduled band/ pay order provided by nationalised bank/ demand draft.
A document can be printed or written on plain paper, and stamp duty can be paid using challan or scheduled band/ pay order provided by nationalised bank/ demand draft. However, the payment must be made within two months from the execution date of the document and certified by the sub-registrar or jurisdictional district.

What Are the Points to Consider Before Paying the Stamp Duty in Bangalore?

Here are the points to consider before paying the stamp duty charges in Bangalore –

All properties applicable for stamp duty should be stamped before registration or the next working day from the day of execution. A property deed can be stamped within three months if it is executed outside the territory. Execution means both parties involved in the transaction, signed in agreement.
The gap between the transaction date and issuing of stamp paper should not be more than six months.
Stamp paper must have the names of individuals involved in the transaction.
Stamp duty charges in Bangalore can be made through adhesive stamps. The adhesive seal is removed during execution time to avoid the reuse of stamps.

What Are the Factors That Affect Stamp Duty Charges in Bangalore?

Factors affecting stamp duty charges in Bangalore are –

Factors	Effect on Stamp Duty Charges in Bangalore
Property’s Age	Older the property, lesser the stamp duty rates.
Property Owner’s Age	Senior citizens usually pay a lesser stamp duty charge.
Location of Property	Properties in urban localities have greater stamp duty rates than those in suburban or rural areas.
Property’s Purpose	Stamp duty charges are higher if the property is used for commercial purposes.
Amenities	If a property has more amenities, it charges a higher stamp duty.

Are Tax Benefits Available on Stamp Duty and Registration Charges?

Yes, tax benefits are available on stamp duty and registration charges according to Section 80C of Income Tax Act 1961. Maximum tax deduction limit of this criteria is ₹ 1,50,000.

Here are some of the things one should keep in mind while applying for the tax benefits –

Tax deduction benefits can only be availed when the actual payment is made towards these expenses.
A person applying for the tax benefits must be a legal owner of the property.
Property’s construction must be complete.
Tax deduction benefits for co-owners in joint ownership are calculated on their share in property. Nevertheless, maximum tax deduction limits remain the same as ₹ 1,50,000.

Stamp duty and registration charges provide legal assurance towards the buyer's property and generate revenue for the state. Current stamp duty and property registration charges in Bangalore decide the property's final value.

Frequently Asked Questions

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What is the current property registration charge in Bangalore?

Present property registration charge is 1% of the property's market value in Bangalore.

Who pays the stamp duty, buyer or seller?

The buyer pays stamp duty for all immovable assets.