Stamp Duty and Property Registration Charges in Bangalore

Any residential or commercial property, whether purchased for oneself or as a gift, needs to be compulsorily registered under the Karnataka Government. This is done through the Department of Stamps and Registration in Bangalore. Stamp duty is a Government tax, paid to the sub-registrar to transfer the ownership of the property.

This legal tax system varies across states, and currently, in Bangalore, the overall stamp duty is 5% for properties valued between ₹21 Lakhs to ₹45 Lakhs. However, if the property’s total value is below ₹20 Lakhs, a 2% stamp duty is applicable. This range can vary depending on the type of property.

According to the current guidelines by the Karnataka Government, property types can include wills, leases, conveyances, gifts, agreements with or without possession, mortgages, and more. The stamp duty and property registration charges in Bangalore for some properties are outlined below:

Registration and stamp duty charges in Bangalore vary according to the type of deed, such as conveyance, will, lease, and others. The charges for some of these are outlined below:

• Conveyance Deed

A conveyance deed is essential for transferring property ownership in Bangalore. The stamp duty charges for a conveyance deed are 5% of the property’s value, while the registration charges are 1%.

• Lease Deed

When leasing property to someone else in Bangalore, lease deed charges apply. If the lease duration is up to 1 year, the stamp duty will be 0.5% with an advance and premium fine. The registration charges are ₹5 for every ₹1,000, or part thereof. 

For leases of 10, 20, or 30 years, the stamp duty will be 1%, 2%, or 3%, respectively.

• Joint Development Agreement

A joint development agreement is created when landowners and developers collaborate. The stamp duty for this agreement is 2% of the property value, and the registration fee is 1%, with a maximum charge of ₹1.5 Lakhs.

• Rental Agreement

For commercial rent agreements, the stamp duty is 0.5% of the average annual rent, and the registration fee is a minimum of ₹200. For commercial or industrial rent agreements, the stamp duty is the same, and the registration fee remains unchanged. 

These charges apply only for rental agreements of up to 1 year.

• Cancellation Deed

When an agreement is cancelled and the stamp duty has already been paid, there will be no change in the stamp duty charges. However, if the cancellation is for a conveyance deed, a charge of ₹100 or 1% of the market value will be applied.

Disclaimer: The above-mentioned fees and charges are subject to changes as per updates in policies. Check the latest charges before proceeding.

The Karnataka Government has recently implemented a significant change in stamp duty charges for residential properties. As per the new regulations, any residential property or flat valued below ₹45 Lakhs will now incur only 3% stamp duty charges. Previously, the stamp duty for such properties was 5%. 

This amendment, made under the Karnataka Stamps Act, 1957, aims to boost the struggling property market post-pandemic and address the issue of vacant flats. First-time buyers looking for properties within this price range can now save more when making a purchase.

To calculate the stamp duty and registration charges in Bangalore, you need to input some property details into the calculator. The calculation follows these steps:

1. Multiply the stamp duty by the actual market value of the property.

2. To calculate the registration fee, multiply the registration charge by the actual market value of the property.

3. Add the stamp duty and registration fee to the property’s value to determine the total amount you need to pay.

Alternatively, you can also use online calculators to ease the process.

You can pay the stamp duty charges in Bangalore online by navigating to the official Kaveri portal by the Karnataka Government. Here are the steps you can follow to pay your stamp duty in Bangalore:

1. Visit Kaveri Online Services portal by the Karnataka government, and click on ‘External Links’ option.

2. Click on Khajane-2 Gateway, and then choose the 'Khajane- 2 Challan Generation' option under ‘Portals and Services’.

3. You will be redirected to a new page, click on 'Generate Challan'

 

4. Enter the date, remitter details, department details, and details about the purpose

 

5. Click on 'Submit' to complete the process

 

 

To own a property or transfer the ownership of a property to another person in Bangalore, documents will be required from all parties involved. Some of these documents include:

• RTC- Rights and Tenancy Corps documents 

• If the property is a joint property, then a Registered Development Agreement is needed

• All title documents

• Copies of all previous agreements

• Sale Agreement

• Encumbrance Certificate

• Conversion order

• Any tax receipts- paid

• Khata certificates

• Absolute sale deed in the name of the present seller

• Possession certificate received from the builder

In Bangalore, if you want to get a refund for the stamp duty already paid, you need to file an application. According to the department, 98% of the amount is refundable, and you also need to submit the original cancellation document. 

Note that a service charge may be deducted from the refund amount. To process this, you can visit the nearest sub-registrar’s office and submit the refund application.

Tax exemptions are only allowed for new properties in Bangalore. According to the stamp duty charges instructions, you can get tax benefits for new homes under Section 80C of the Income Tax Act, 1961. However, this does not apply to commercial or business properties.

In certain cases, stamp duty charges are exempted in Bangalore, including: 

• Mortgage, loan agreements, credit deeds, and hypothecation deeds executed for availing loans from KSFC, commercial banks, RRBs, co-operative banks, and KVIB/KVIC

• Industrial-enterprise-executed lease, lease-cum-sale, and absolute sale deeds for industrial plots, sheds, and tenements by KIADB, KSSIDC, KEONICS, industrial co-operatives, and approved private industrial estates

To address any grievance to the Stamps and Registration Department of Karnataka in Bangalore, you can either call or log in to the website. To make a direct call to the department, dial 1902 to address your concerns. 

Alternatively, you can visit the grievance redressal portal, log in with your credentials, and submit your request. You can expect a swift response during working days.