Property Stamp Duty and Registration Charges in Bangalore Buyers planning to invest in residential property in Bangalore should be aware of the associated costs like stamp duty and registration charges while estimating the total costs required for investing in property. So, what are stamp duty and registration charges? As per the ongoing rates, you will have to pay 5 per cent of the registered value of the property as stamp duty. In addition there is a 10 per cent cess and 2 per cent surcharge on stamp duty. Accordingly, buyers have to pay 5.6 per cent stamp duty in urban areas and 5.65 per cent in rural areas as the surcharge in such areas is 3 per cent. The registration charges is 1 per cent of the total or registered property value. How to calculate stamp duty and registration charges? Both stamp duty and registration charges vary from State to State, with registration charges calculated based on the Indian Registration Act, 1908. Different parameters are employed to calculate the registration charges for different types of buildings. In Bangalore, there are different classification of buildings based on which the parameters used to calculate the stamp duty and registration charges also differ. In case of multi-storeyed apartments, the super built up area is used for calculating the stamp duty and registration charges. For plots, the square feet area of the plot is multiplied by the guideline value of the area, and in case of independent houses, the total constructed area is considered for calculating the total property value.
Calculations related to Stamp duty and Registration charges
The guideline value, more commonly known as guidance value, is the minimum value at which a property can be registered. It is decided by the respective State governments and differs from one area to another, in a city. While registration charges are mostly fixed, stamp duty in Bangalore can change from time to time, with the Karnataka government revising them mostly annually. However, unlike in other States like Haryana and Rajasthan, these charges are the same for both men and women. These charges are primarily dependent on the existing market rate of the property, the expansion of the city limits and the property market performance. Saleable Value = Size of property * Guidance Value Registration charges = 1 per cent of Saleable Value Stamp Duty = 5.6 per cent in Urban areas and 5.65 per cent in Rural areas of Bangalore Total cost of the property = Saleable value of the property + Stamp duty + Registration charges Let us take the instance of a property which measures 2000 sq. ft. in an area in Bangalore where the guidance value is Rs 5000 per sq. ft. Hence, The Saleable Value of this property = 2000 * 5000 = Rs 100,00,000 Registration charges = 1 per cent of 100,00,000 = Rs 1,00,000 Stamp duty in Urban areas = 5.6 per cent of 100,00,000 = Rs 5,60,000 Total cost of the property = 100,00,000 + 1,00,000 + 5,60,000 = Rs 106,60,000 Payment of Stamp duty and Registration charges Stamp duty and registration charges in Bangalore are paid through the Karnataka State department of Stamp duty and Registration. Stamp duty can be paid through the following means: a) Purchase of impressed stamps from treasury or authorised stamp vendors, ORb) Purchase of adhesive stamps, OR b) Purchase of adhesive stamps, OR c) Payment to the government through payment of DD/ pay order issued by any nationalised bank/scheduled bank or challan, OR d) Instrument (document) can be written on plain paper and the stamp duty can be paid through DD/ pay order issued by any nationalised bank/ scheduled bank or challan within two months of the date of execution of the instrument, and certified by the jurisdictional District or Sub Registrar.
Source: CommonFloor.com
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