Stamp Duty and Property/Flat Registration Charges in Bangalore

Recently, stamp duty and registration charges in Bangalore were reduced from 5% to 3% for assets in the price segment under ₹ 21 lakhs to ₹ 35 lakhs.

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

Registration charges and Stamp duty in Bangalore are slightly different from other states and cities. Typically, the stamp duty is between 3% and 5% of the market value. Whereas, the registration charges are between 1% and 3%, depending on the market value. For instance, 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 5% for properties valued above ₹ 45 lakhs.

Present Stamp Duty and Registration Charges in Bangalore

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

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 – In the stamp duty and Registration fee calculator page

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. However, if you do not know the market value , click on “Calculate market value” option.

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

Know more about why Property Insurance is important?

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.

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.

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.
• Commercial properties, resale property, and residential plots are not eligible for this tax benefit.

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.