Stamp Duty and Registration Charges in Karnataka

stamp duty in karnataka — (Source: sobhaenrich.com)

Buying a property in any Indian state mandates an individual to pay stamp duty and property registration charges. This amount is collected against any immovable and movable assets.

One can register this property against their name by paying the required fees to the municipal corporation.

Individuals planning to purchase a residential or commercial property in Karnataka must check the levied registration charges. Keep reading to learn more about stamp duty in Karnataka and its calculation.

What Are the Property Registration & Stamp Duty Rates in Karnataka?

As discussed earlier, property registration in Karnataka is essential to get ownership. This rule is mandated by Section 3 of the Indian Stamp Act 1899, which again authenticates a property’s sale agreement and maintains an appropriate record for it.

Individuals should know that the stamp duty and registration charges vary from state to state. It can increase with the property type and size.

Recently the Karnataka Government has reduced the stamp duty charges by 3% for homes ranging between ₹35 lakhs to ₹45 lakhs.

This decision has made the stamp duty charges affordable and initiated healthy savings for property buyers. Moreover, the Government targets sale of affordable housing in India, which is nearly 48% of the unsold inventory.

Hence, a reduction in stamp duty indicates growth in demand for such affordable housing.

Let’s check what are the current stamp duty and registration charges in Karnataka.

Property Registration Charges in Karnataka

Take a look at the Karnataka property registration charges in this table illustrated below.

[1]

Fee Type	Fee Amount
BMRDA, BBMP and village areas added cess	10% on the stamp duty
Registration charge	1% of the property value
BMRDA and other surcharges	3% on the stamp duty
Corporation and BBMP added surcharges	2% on the stamp duty

What Are the Stamp Duty Rates in Karnataka?

[2]

Stamp Duty	Property Value
3%	Between ₹21 lakh - ₹35 lakh
2%	Less than ₹20 Lakh
3%	Above ₹35 lakh

Let’s check what is the stamp duty in Karnataka, based on gender.

Individuals should know that registration and stamp duty charges are similar for both men and women in Karnataka, unlike other states.

[3]

Buyer	Stamp Duty	Registration Charges
Men, Women, Joint owners	Stamp duty is 3% on properties worth ₹45 lakhs, 2% on properties less than ₹20 lakhs, and 5% on those worth over ₹45 lakhs.	The registration charge is 1% of the property cost.

Individuals should know that apart from stamp duty the Government also levies cess and surcharge. Ideally, a surcharge of 2% and cess of 10% charged on property priced above ₹35 lakh.

One buying a property in a rural area has to pay a surcharge of 3% as the home buyer is obligated to pay a 5.65% stamp duty.

What Are the Stamp Duty Rates on Different Property Deeds in Karnataka?

Here are the applicable stamp duty rates in Karnataka on different property deeds:

[4] [5]

Property Deeds	Stamp Duty
Sale Agreement	During a sale agreement, the stamp duty is tagged at 0.1% of the property’s market value and it is borne by the new buyer.
Loan Agreement	The minimum stamp duty payable for a buyer is set at ₹500. As per Article 6 of the Karnataka Stamp Act, a stamp duty of 0.1% is collected for a loan agreement in Karnataka.
Gift (If Donee is not a family member of donor)	5% on the market value + Additional duty + Surcharge
Gift (If Donee is a specified family member of donor)	₹1000 + surcharge and Additional duty

Let’s check the ways to calculate stamp duty and registration charges in Karnataka. This will help in understanding the concept better.

How to Calculate Registration Charges and Stamp Duty in Karnataka?

Individuals should know that the stamp duty is based on property value and area. This rate is a set value that doesn’t allow purchasing a property priced less than the mentioned amount.

However, stamp duty is charged on a high property value and reckoner rate.

Let’s look at an example to understand the calculation of Karnataka state stamp duty for a property.

A property costs around ₹5,000 per square ft as per BBMP.

Guidance property value

₹5000x1000= ₹50,00,000

An individual wants to purchase a property of 1000 square feet at ₹5,000 per sqft in Karnataka.

Here the guidance property value will be-

Guidance property value

₹5000x1000= ₹50,00,000

The Karnataka stamp duty charges will be –

Stamp Duty Charges

5.6% of ₹50,00,000 = ₹1,50,000

Let’s check the Karnataka property registration fee

Registration Charges

3% of ₹50,00,000 = ₹50,000

Here the total stamp duty and registration charges are needed.

Total of Stamp Duty and Registration charges

₹1,50,000 + ₹50,000 = ₹2,00,000

Hence, an individual has to pay the mentioned amount:

Total amount needed to be paid

Property cost+ Total of Stamp Duty and Registration charges ₹50,00,000+ ₹2,00,000= ₹52,00,000

However, a manual calculation can be time straining and filled with errors. It is beneficial to use a convenient tool such as an online Karnataka stamp duty calculator.

Steps to Use a Stamp Duty Calculator

Individuals can find a stamp duty calculator and registration charge calculator on financial websites. This tool is free to use and offers precise results within seconds.

The steps to use this smart tool are as follows-

Step 1: Visit the website offering a stamp duty online calculator. Select the nature of the property and proceed.
Step 2: Select the region type such as city corporation, BBMP, town panchayat, municipal corporation, gram panchayat, etc.
Step 3: Enter the property value and market value to get the applicable stamp duty in that area.

Let’s check how to pay stamp duty and property registration fees in Karnataka.

How to Pay Stamp Duty and Registration Fees in Karnataka?

The steps to pay registration fees and stamp duty in Karnataka online are as follows.

Online Procedure

Step 1: Visit the official K2 website and click on ‘Generate Challan’.
Step 2: Fill in the relevant details such as an address, email ID, contact number, etc. Select the rural and urban property location
Step 3: Select the stamp and registration department type and select the sub-registrar office in the DDO office section. Click on stamp duty in purpose and agreement for sale of immovable property in sub purpose.
Step 4: Enter the stamp duty amount and mode of payment. Click on the submit option and enter the CAPTCHA code.

The challan number will be generated.

Individuals should know that the challan is valid for 90 days. Hence, individuals should register the property by a sub-registrar after completing online property registration in Karnataka.

Offline Procedure

Individuals have to visit the sub-registrar office in the locality in which the property is located. Individuals have to submit the mentioned documents signed by both seller and the buyer for registration.

Individuals have to bring two witnesses to complete the procedure. The process completes after paying the required registration fee and stamp duty. The sub-registrar will offer the registration document after verification.

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

Here are a few essential points you need to consider before paying stamp duty in Karnataka:

The date of the issued stamp paper must not be more than 6 months from the transaction da
All assets applicable for stamp duty must be stamped before registration or the next working day.
The stamp paper must be in the name of individuals involved in a transaction.
The adhesive stamp removed at the execution time is not available for reuse

What Are the Factors That Affect Stamp Duty in Karnataka?

Factors that affect the stamp duty in Karnataka are as follows -

Factors	Stamp Duty Rates and Registration Charges in Karnataka
Age and gender	Senior citizens have to pay a lower stamp duty charge in Karnataka. This factor affects the charges significantly. Moreover, in India, men have to pay 2% more stamp duty. This is not applicable to Karnataka.
Property location	Stamp duty charges are usually higher in the urban area, while properties outside these areas enjoy lower stamp duties.
Property age	The stamp duty is calculated on the total value of the house or property where the age of this property plays a crucial role. Individuals should know that older properties are less expensive than newer ones.
Basic amenities	Properties surrounded with basic amenities such as elevators, swimming pools, etc., have higher stamp duty. The property value will be higher.

Are Tax Benefits Available on Stamp Duty and Registration Charges?

Section 80C of the Income Tax Act 1961 allows tax benefits on expenses related to stamp duties and registration charges. Here the maximum deduction limit is ₹1,50,000.

However, commercial houses, residential plots and resale property are not eligible for this tax deduction. This tax exemption applies to new properties.

These are some essential details on stamp duty in Karnataka and registration charges. As paying stamp duty is mandatory, knowing the rates and payment steps makes the process easier.

FAQs About Stamp Duty and Registration Charges in Karnataka

All

Which cities have a high stamp duty in Karnataka state?

Chennai, Hyderabad, and Kerala are cities that have a high stamp duty in Karnataka. The stamp duty ranges between 7-9%in these cities.

Which properties are not eligible for this tax deduction?

Commercial houses, resale properties, and residential plots are not eligible for this tax deduction. This tax exemption applies to new properties only.

What factor influences the flat registration value in Karnataka?

The registration value of flats in Karnataka is based on super built-up area.