Stamp Duty and Property/Flat Registration Charges in Karnataka

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.

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.

You may also like Property Insurance

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.

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.

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

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.