Stamp Duty and Registration Charges in Bangalore

Purchasing a residential property in Bangalore is an exciting milestone, but it's crucial to factor in the associated costs beyond the purchase price. Stamp duty and registration charges are essential government levies that must be paid when registering the property under your name. Understanding these charges will help you budget effectively for your property purchase.

Stamp duty is a tax levied by the Karnataka state government on the transfer of ownership of immovable property like land or apartments. It's essentially a legal document fee that serves as a proof of payment for the property transfer.

Stamp Duty Rates in Bangalore

The stamp duty rate: 5% of the market value

Additional Charges on Stamp Duty

It's important to note that the above rates are the base stamp duty. There are additional charges applicable in urban areas like Bangalore:

• Cess: A 10% cess is levied on the base stamp duty.
• Surcharge: An additional surcharge is applied depending on the location.

1. 2% for properties in BBMP limits 

2. 3% for properties in rural areas (village panchayats).

Stamp duty +Cess+Surcharge

Considering the additional charges, the effective stamp duty rates in Bangalore become:

• Properties in BBMP limits: 5% property value as stamp duty + Cess 10% of stamp duty + Surge Charge 2% of stamp duty = Total 5.6%.
• Properties outside BBMP limits: 5% property value as stamp duty + Cess 10% of stamp duty + Surge Charge 3% of stamp duty = Total 5.65%.

*Note - Additional 1% of property value will be charged as Registration charges, This is applicable for both BBMP and Rural properties.

Example Calculation

Let's say you're purchasing an apartment in Bangalore for Rs. 30 lakh in BBMP Limits. Based on the above rates:

• Base Stamp Duty: Rs. 30 lakh * 5% = Rs. 1.5 lakh
• Cess: Rs. 1.5 lakh * 10% = Rs. 0.15 lakh
• Surcharge: Rs. 1.5 lakh * 2% = Rs. 0.03 lakh
• Total Stamp Duty: Rs. 1.5 lakh + Rs. 0.15 lakh + Rs. 0.03 lakh = Rs. 1.68 lakh.

Registration charges are fees paid to the government for registering the sale deed and transferring the ownership of the property. These charges are a flat 1% of the market value or the consideration amount (sale price), whichever is higher.

In most cases, the buyer bears the stamp duty and registration charges. However, there can be negotiations between the buyer and seller regarding who shoulders these costs. It's advisable to clearly define this in the sales agreement.

Stamp duty and registration charges can be paid electronically through various methods, including:

• Online payment portals Khajane-II portal from government of karnataka.

• Sale deed duly signed by both parties.
• No Objection Certificate (NOC) from the society/apartment association.
• Encumbrance Certificate (EC) for the property.
• Latest Khata Certificate issued by BBMP or Panchayat as applicable
• Latest Property tax paid receipt 
• TDS challan deducted and paid by Buyer in favor of Seller.
• Photo identity proof of buyer and seller.
• Address proof of buyer and seller.
• PAN card of buyer and seller.

Understanding stamp duty and registration charges is essential for a smooth property purchase in Bangalore. By factoring these costs into your budget, you can avoid any financial surprises during the registration process. It's also recommended to consult with a lawyer or real estate consultants to ensure all legal aspects related to stamp duty and registration are handled correctly.

Additional Points to Consider

• This article provides a general overview of stamp duty and registration charges in Bangalore. It's advisable to refer to the official website of the Karnataka IGRS department for the latest rates and any revisions.
• The stamp duty rates might differ for specific property types like commercial properties or agricultural land.
• There might be additional charges applicable depending on the type of transaction (e.g., gift deed, inheritance).