Stamp Duty and Registration Charges are the two key factors that impact a customer’s property purchasing budget in Bangalore. The Stamp Duty is levied by the state governments on the basis of the market value of the property, whereas, Registration Charges are levied as per the Registration Act, 1908, for registration of the property. However, to promote affordable housing, from April 1, 2020, stamp duty on new flats (costing less than Rs. 20 lakh) has been reduced to 2 per cent from 5 per cent.
The table below shows various charges applicable on property registration in Bangalore.
Stamp duty and registration charges in Bangalore
| Type | Applicable Charge |
| Stamp Duty | ● 5.6% on properties above Rs. 20 lakh ● 2% on properties less than Rs. 20 lakh |
| Property Registration Charges | 1% of the property value |
| Cess | 10% on the Stamp Duty |
| Surcharge | 2% on the Stamp Duty |
Note: In areas under Village Panchayat, the surcharge is 3 per cent and the total stamp duty value is 5.65 per cent.
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Factors Affecting Stamp Duty Charges
There are several factors that affect the Stamp Duty charges in Bangalore. These are:
- Property Location: In urban areas, stamp duty levied on the property is higher than in rural or suburban areas.
- Purpose: The stamp duty applicable on a commercial property is higher than on a residential property.
- Property Age: As the stamp duty is levied on the property value, old properties, due to having a low price, attract lower stamp duty than the comparatively new one.
- Amenities: Property or building with more amenities attract more stamp duty than a property with fewer amenities.
- Owner’s Age:In most states of India, senior citizens pay subsidized stamp duty than others.
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Calculation of Property Registration Charges In Bangalore
In Bangalore, different standards are used for total charge calculation on the basis of property type. Below-mentioned are some of the examples of the same.
- For multi-storey apartments, the super built-up area is considered for calculation
- For plots, the square ft. area of the plot is multiplied by the prevailing guideline value of the respective circle/zone
- For independent houses, the total constructed area is considered
Also Read: Meaning of carpet area, built-up area and super built-up area
It is important to underline here that the stamp duty rates are variable, and change from time to time. There is no fixed timeline set by the Karnataka government for revision of these charges. However, most of the times, the state government revises them annually.