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Stamp Duty and Property Registration in Karnataka: A Complete Guide

Writer's picture: Sahara Sultana Sahara Sultana

Updated: Oct 23, 2024

In Karnataka, the process of property registration and the payment of stamp duty are essential legal requirements for validating property transactions. These requirements are governed by various laws, including the Indian Stamp Act, 1899, and the Registration Act, 1908. This guide provides an overview of stamp duty rates, registration charges, and the procedures involved.


Stamp Duty Rates in Karnataka:

The stamp duty in Karnataka is based on the property's value and is applicable uniformly across different buyer categories. The rates are as follows:

Property Value

Stamp Duty Rate

Above ₹45 lakh

5% of the property value

Between ₹21 lakh and ₹45 lakh

3% of the property value

Below ₹20 lakh

2% of the property value

In addition to the stamp duty, a registration charge of 1% of the property’s value is also applicable. Example Calculation of Stamp Duty and Registration Charges in Karnataka, For a property valued at ₹40 lakh:

  • Stamp Duty: 3% of ₹40 lakh = ₹1.2 lakh

  • Registration Charge: 1% of ₹40 lakh = ₹40,000

  • Total Charges: ₹1.2 lakh (Stamp Duty) + ₹40,000 (Registration Charge) = ₹1.6 lakh


Registration charges on Property in Karnataka:

When purchasing property in Karnataka, you need to pay stamp duty and registration charges to the Department of Stamps and Registration, Government of Karnataka. The charges vary depending on whether the property is located in an urban or rural area.

Type of Fee

Amount

Registration Charge

1% of the property value

BMRDA and Other Surcharges

3% of stamp duty

BBMP and Corporation Added Surcharges

2% of stamp duty

BBMP, BMRDA, and Village Areas Added Cess

10% of stamp duty

Note: In rural areas, the BBMP and Corporation added surcharges and cess do not apply, as these are specific to urban areas.


Factors Influencing Stamp Duty and Registration Charges in Karnataka:

Several key factors can impact the stamp duty and registration charges in Karnataka

  1. Property Value: The stamp duty increases with the property's value, following a tiered structure.

  2. Location: Properties in urban areas, particularly within city limits like BBMP, may be subject to additional surcharges or cess.

  3. Property Type: Different rates may apply depending on whether the property is residential, commercial, or agricultural.

  4. Government Policies: State policies and budget changes can influence the rates, potentially introducing new surcharges or offering concessions.

  5. Special Concessions: Certain categories, such as first-time homebuyers or those purchasing properties in affordable housing schemes, may be eligible for discounts or exemptions.


Looking for a Property Lawyer in Karnataka, talk to our team

Exemptions and Concessions in Karnataka Stamp Duty:

Under Section 80C of the Income Tax Act, 1961, you can claim tax benefits for expenses related to stamp duty and registration charges, with a maximum deduction limit of ₹1,50,000. However, this exemption is applicable only to new properties and does not cover commercial properties, residential plots, or resale properties. Understanding the applicable rates and payment process for Karnataka house registration charges is essential, as it is a mandatory legal requirement.

Property Registration Process in Karnataka

  1. Log on to the Kaveri Online Services Website:

  2. Create Your User ID:

    • Select the 'Register as new user' option and create your account by filling in the required details.

  3. Log In to Your Account:

    • Once registered, log in using your credentials.

  4. Access the 'Online EC' Option:

    • Under the 'Services' section, click on the 'Online EC' (Encumbrance Certificate) option.

  5. Follow the Website Instructions:

    • Follow the on-screen instructions to proceed through the process until you reach the Encumbrance Certificate (EC) stage.

  6. Select 'Document Registration' Option:

    • Navigate to the 'Pre-Registration Data Entry' section and choose the 'Document Registration' option.

  7. Enter Property Details:

    • Provide the required information, including property details, approvals, and fee details, across the various pages.

  8. Book an Appointment:

    • Once all details are entered, you can book an appointment to complete the registration process online.

  9. Visit the Registrar's Office:

    • On the scheduled appointment date, the buyer, seller, and witnesses must visit the registrar's office.

  10. Present Identification and Payment:

    • Present your identification documents and the demand draft for the payment amount to the registrar.

  11. Sign the Registry Documents:

    • After verification, sign the registry documents to complete the property registration.

 

Looking for a Property Lawyer in Karnataka, talk to our team: https://www.legalshiksha.com/property-lawyers-in-bengaluru





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Disclaimer: The information on the website is for information purpose, Legalshiksha.com and its team isn't responsible for any actions which you might have taken. If you need any legal advice please contact us or any advocate before proceeding with your case hearing.

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