What is the Stamp Duty Charge in Bangalore?

State governments depend heavily on stamp duty for revenue. It’s a tax levied by the

state government on purchases based on the property’s market value. The tax is a

source of income for the states and the proceeds go towards developmental work. 

When you purchase a property the Registration Act of 1908 mandates you to register

the ownership documents in government records. You are also liable to pay a certain

percentage of the property cost towards such registration. These compulsory charges

add up to the overall cost of buying a home in any city. The same is true for Bangalore.

In an effort to improve the property market, the Karnataka government reduced the

stamp duty charges. With this declaration, properties valued between Rs 35 lakh and

Rs 45 lakh will now be subject to a 3% stamp duty. As before, properties worth more

than Rs 45 lakh would be subject to a 5% charge. There have been no changes to

registration fees reported.

If you’re looking to buy a home in Bangalore and have a specific budget in mind, you

must consider the amount that you will have to pay for getting your property

registered. The Karnataka government has declared a reduction in stamp duty on

properties valued between Rs 35 lakh and Rs 45 lakh in order to raise real estate

sentiment in the state. All such properties will now attract 3 per cent stamp duty.

The state government cut stamp duty rates on properties priced under Rs 35 lakh last

year. According to current rates, stamp duty is 5% of the total or registered property

value (over Rs 45 lakh) and registration fees are 1% of the total or registered property

value in Bangalore.

How much is the stamp duty in Bangalore?

In addition, stamp duty is subject to a ten percent cess and a two percent surcharge.

In total, a buyer is liable to pay 5.6 percent (for properties above Rs 45 lakh) stamp

duty in urban areas. In areas under Village Panchayat, the surcharge is 3 percent, and

thus the total stamp duty value is 5.65 percent.

Though state governments levy stamp duty on the property based on its market value,

the registration charge is levied for document registration under the Registration Act of

1908. These charges, while mandatory, differ from state to state and city to city based

on city laws.

In Bangalore, how is stamp duty calculated?

To calculate the registration fee and Stamp duty, different standards are used for

different property types. In Bangalore –

• The super built-up area is taken into account when calculating the price of multi-story apartments.

• For plots, the sq ft area of the plot is multiplied by the prevailing guideline value of that area

• For independent houses, the total constructed area is considered.

The stamp duty rates are not fixed and are subject to change from time to time.

However, there are no fixed timelines for these charges to be revised by the state

government. The Karnataka government usually revises them once a year. In

Bangalore, unlike many other states such as Haryana and Rajasthan, these fees are

the same for men and women.

These charges are mostly dependent upon the current market rate of the property,

expansion of city limits, and real estate sector performance.