#Bangalore Real Estate#Buyers#Owners#Residential#Stamp Duty#Taxation
Starting September 2, 2024, residents of Karnataka can register their properties at any sub-registrar office within a district, with the State government launching the ‘Anywhere Registration’ system. This move is aimed at providing relief to the public by saving their time and money. So, let’s delve into this latest update and also know about the stamp duty and registration charges in Bangalore.
Stamp duty and registration fees are mandatory taxes the Karnataka government imposes during property transactions. While these charges apply to both purchase and ownership transfers, they also play a crucial role in contributing to the State’s revenue generation. To provide a convenient route to pay property registration charges in Karnataka, the State government launched the ‘Anywhere Registration’ system across the State.
Although it was launched in Bangalore in 2011, the Revenue Minister Krishna Byre Gowda recently confirmed the statewide rollout at all 257 sub-registrar offices to make the registration process faster and easier. Let’s learn more about this new initiative and the latest stamp duty and registration charges in Bangalore.
Current stamp duty and registration charges in Bangalore, Karnataka
While the state government levies stamp duty tax on the basis of its market value, the registration charge is levied for the registration of property documents under the Registration Act, 1908. These charges, often paid together, are mandatory for any individual buying or investing in a property in the State.
The below-mentioned table lists the applicable stamp duty charges on residential properties in Bangalore, based on gender and budget segment-
| Gender | Stamp Duty rates | Registration Charges |
|---|---|---|
| Male | 5% on properties above Rs 45 lakh | 1% of the property value |
| 3% on properties between Rs 21-45 lakh | ||
| 2% on properties less than Rs 20 lakh | ||
| Female | 5% on properties above Rs 45 lakh | 1% of the property value |
| 3% on properties between Rs 21-45 lakh | ||
| 2% on properties less than Rs 20 lakh | ||
| Joint (Male + Female) | 5% on properties above Rs 45 lakh | 1% of the property value |
| 3% on properties between Rs 21-45 lakh | ||
| 2% on properties less than Rs 20 lakh | ||
| Joint (Male + Male) | 5% on properties above Rs 45 lakh | 1% of the property value |
| 3% on properties between Rs 21-45 lakh | ||
| 2% on properties less than Rs 20 lakh | ||
| Joint (Female + Female) | 5% on properties above Rs 45 lakh | 1% of the property value |
| 3% on properties between Rs 21-45 lakh | ||
| 2% on properties less than Rs 20 lakh |
Earlier in March 2024, the revenue department levied an extra 0.5 percent tax rate on the property value and a minimum fee of Rs 500 per the amendments made to the Stamp Duty Act of Karnataka. This move increased the stamp duty rate to register the sale agreement for properties that had yet to be delivered.
Stamp duty rates in Bangalore for males in 2024
Previously, the stamp duty charges ranged between three and five percent of the market value, while registration charges would hover within one to three percent. In 2021, the Karnataka government reduced the stamp duty in Bangalore by two percent for houses valued between Rs 21 lakh and Rs 45 lakh.
Currently, the stamp duty in Bangalore for male homebuyers is as follows-
| Stamp Duty rates for Men |
|---|
| 5% on properties above Rs 45 lakh |
| 3% on properties within Rs 21-45 lakh |
| 2% on properties less than Rs 20 lakh |
Source: Secondary
Stamp duty rates in Bangalore for females in 2024
In Bangalore, the stamp duty and registration charges remain the same for both genders, which implies that female homebuyers would be charged the same amount as male buyers.
The following table highlights the applicable stamp duty in Bangalore charged for female homebuyers-
| Stamp Duty rates for women |
|---|
| 5 percent on properties above Rs 45 lakh |
| 3 percent on properties within Rs 21-45 lakh |
| 2 percent on properties less than Rs 20 lakh |
Source: Secondary
Stamp duty and registration charges in Bangalore for commercial and industrial properties
Commercial properties are referred to as office spaces, retail outlets, educational institutions, hospitals, etc. On the other hand, warehouses, manufacturing units, factories, and storage units are classified as industrial properties.
The table below details the ongoing stamp duty, cess, surcharge, and registration charges of both property types.
| Parameters | Commercial and Industrial Properties |
|---|---|
| Stamp duty | 5% of market value |
| Cess | 10% of stamp duty value (applicable on properties priced Rs 35 lakh and up) |
| Surcharge | 2% for urban properties and 3% for rural properties |
| Registration charges | 1% for possession and Rs 20 for non-possession |
Source: Secondary
Stamp duty and registration charges in Bangalore on different types of deeds
The section below gives a detailed overview of the different deed types and the applicable stamp duty and registration charges applicable on them-
Conveyance Deed
The stamp duty charges applicable on the conveyance deed are as following-
| Document | Stamp Duty | Registration Fee |
|---|---|---|
| Conveyance (flats/apartments) | 5% on market value + additional duty + surcharge | 1% |
| Conveyance by KHB/BDA | 5% on consideration as per the document + additional duty | 1% |
| Conveyance on Transferable Development Rights (TDR) | 1% on the market value or higher value + additional charge + surcharge | 1% |
Source: Department of Stamps and Registration, Government of Karnataka
Gift Deed
For property transferred through a gift deed, the following stamp duty charges are applicable-
| Transfer Type | Stamp Duty Charges | Registration Charges |
|---|---|---|
| If donee is not a family member of donor | 5 percent + Surcharge + Additional duty | 1% |
| If donee is a family member of donor | Rs1000 + Surcharge + Additional duty | Rs 500 (fixed) |
Source: Department of Stamps and Registration, Government of Karnataka
Lease Deed
If the property transfer is being carried out via a lease deed, the following charges will be applicable-
| Lease of immoveable property / License | Stamp Duty | Registration Fee |
|---|---|---|
| Up to 1 year residential | 0.5% on the average annual rent (AAR) + Advance + Premium + Fine. Max. 500 | Rs 100 |
| Up to 1 year commercial and industrial | 0.5% on the average annual rent (AAR) + Advance + Premium + Fine | Rs 5 for every Rs.1000/- or part there of Min Rs. 100 |
| (3) 1yr to 10 years | 1% on AAR + Advance + Premium + Fine | Rs 5 for every Rs.1000/- or part thereof |
| (4) 10yrs to 20 years | 2% on AAR + Advance + Premium + Fine | Rs 5 for every Rs.1000/- or part thereof |
| (5) 20yrs to 30 years | 3% on AAR + Advance + Premium + Fine | Rs 5 for every Rs.1000/- or part thereof |
| Lease Only | ||
| Lease of immoveable property between Family members | Rs 1000/- | Rs 500/- |
| Transfer of Lease | ||
| Where the remaining period is less than 30 years | 5% on the consideration | 1% on the consideration |
| Where the remaining period is more than 30 years | 5% on the market value | 1% on the market value |
Source: Department of Stamps and Registration, Government of Karnataka
Cancellation Deed
The charges levied on a cancellation deed are as follows-
| Cancellation of agreement | ||
|---|---|---|
| a) Cancellation of any instrument previously executed on which stamp duty has been paid as per any article of the schedule | Same duty as on the original ageement | Rs 100 or 1% on market value if it is cancellation of conveyance |
| Provided that if the original agreement is a conveyance on sale, then the stamp duty will be as per Article 20(1) | ||
| b) In favour of Govt. or Local Authorities | Rs 100 | Rs 100 |
| c) In any other case | Rs 100 | Rs 100 |
| Cancellation of Will | Rs100/- | Up to Rs 200 |
Source: Department of Stamps and Registration, Government of Karnataka
Power of Attorney
Property transfer through Power of Attorney (PoA) attracts the following charges-
| Power of Attorney | Stamp Duty (in Rupees) | Registration Fee (in Rupees) |
|---|---|---|
| For Registration of admission of one or more documents | Rs.100 | Rs.100 |
| Authorising one or more person to act in a single transaction | Rs.100 | Rs.100 |
| Authorising not more than 5 persons to act in more than one transaction | Rs.100 | Rs.100 |
| Authorising more than 5 and not more than 10 persons in more than one transaction | Rs.200 | Rs.100 |
| When given for consideration and or coupled with interest and when authorising the attorney to sell any immovable property | 5% on the market value or consideration amount whichever is higher | 1% |
| When given to a promoter or developer | 1% on market value of Property or consideration whichever is higher. Max. 15 lakh | 1% or Max 1.5 Lakh |
| When given to persons other than father, mother, wife or husband, sons, daughters, brothers, sisters in relation to the executant, authorising such person to sell immovable property situated in the State | 5% on the market value of the property | 1% |
| In any other case | Rs.200 | Rs.100 |
Source: Department of Stamps and Registration, Government of Karnataka
Sale Agreement
Stamp duty and registration charges on the sale agreement are as follows-
| Agreement relating to sale of immovable property | Stamp Duty | Registration Fee |
|---|---|---|
| (i) with possession | 5% on the Market Value | 1% |
| (ii) without possession | 0.1% on Market value equal to the amount of consideration | Rs 20 |
| Min Rs 500 | ||
| Max Rs 20,000 | ||
| (iii) Joint Development Agreement | 1% or Max Rs 15 Lakhs | 1% or Max Rs 1,50,000 |
Source: Department of Stamps and Registration, Government of Karnataka
A joint development agreement on the sale of an immovable property attracts one percent of the total market value, or Rs 15 lakh as the maximum amount. The registration fee for this agreement is also one percent or a maximum of Rs 150,000.
Stamp duty and registration charges in Bangalore on rental agreement
The stamp duty and registration charges on the rental agreement vary as per the tenure and are charged as follows-
- For a rental period of up to one year, a 0.5 percent stamp duty or a deposit of Rs 500 is levied. In this case, a rental agreement will be required. In this case, the registration charge for residential properties would be Rs 100, whereas, the registration for the commercial unit will be Rs 5 for every Rs 1,000 or part thereof.
- For 1 to 10 years of renting, stamp duty is set at a percent of the total annual rent, or a deposit of Rs 500 would be applicable.
- For a lease duration of 10 to 20 years, the set stamp duty is 2 percent of the annual rent or a deposit of Rs 500 (whichever is lower). Registration is mandatory in this case as well.
Note that the registration charges for rentals exceeding one year will be Rs 5 for every Rs 1,000 or part thereof.
Tax benefit on paying stamp duty and registration charges in Bangalore
Buying a home is an expensive task, and it involves a lot of financial investment. However, homebuyers can avail tax exemptions under Section 80C of the Income Tax Act 1961 on the amount paid as stamp duty and registration cost in Bangalore. Further, there are specific points that need to be taken care of while availing the benefit, such as:
- A person can only apply for tax benefits if the property is legally registered under his/her name.
- The respective property’s construction should be complete.
- Jointly owned properties also fall under the window of tax exemptions. Co-owners can claim these expenses while filling out their ITR (Income Tax Return) for the share they hold in a property.
- Properties excluded from the list of tax benefits are commercial properties, resale properties and residential plots.
- The actual expenses have to be made against stamp duty and registration charges to avail of tax benefits in Bangalore.
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