Stamp duty and Registration costs are associated with the purchase of a flat. Stamp duty and Registration charges vary from state to state. These are payable under Section 3 of the Indian Stamp Act, 1899. The government collects these Charges to validate sale agreements as well as to keep a record of it.
A sale deed on which stamp duty is paid is a proper and legal document. It can work as an evidence in courts. The buyer bears the cost of stamp duty as well as registration cost. These charges are fixed by the state government.
Respective state governments declare the Guidance Value. Guidance value is of two types. Land Value and Composite value. Composite value comprises of land value as well as the value of the building. Once in every 3-4 years, the guidance value increases. One can’t sell a property below guidance value. So the saleable value of the property should actually be the guidance value or the market value, whichever is greater.
Flat, Land and Property Stamps and Registration charges in Bangalore (also valid all over Karnataka)
|1% of Saleable Value of the Property|
|Stamp Duty||5% of Saleable Value of the property|
|BBMP, BMRDA & Village Areas Added Cess||10% on stamp duty|
|BBMP & Corporation Added Surcharges||2% on Stamp Duty|
|BMRDA & other Village Areas added Surcharges||3% on Stamp Duty|
Stamp Duty works out to be 5.6% in Urban Areas and 5.65% in Rural Areas. Registration charges are 1% of the property value. One can find the cost of such stamp duty and registration charges in Karnataka Government Portal.
How the Flat, Land and Property Stamp duty and Registration charges are calculated?
For an example, Consider an area in Bangalore i.e. “Binnamangala Hutting Colony”. The guidance value of “Binnamangala Hutting Colony” is Rs. 4,805 per square feet as per BBMP in effect from 1st of April 2017. This implies the property registration value of Binnamangala Hutting Colony must not be below Rs. 4,805 per square feet. It may be higher, but must not be below it. Since this Area is under Bangalore Urban, the stamp duty charges will be 5.6% of guidance value or the market value, whichever is greater.
Let’s consider a person “Anand” who wants to buy a land in Binnamangala Hutting Colony. The property measures 1,200 sq. ft. The value of the property for sale is equal to guidance value. Now the calculation goes as below.
The Guidance value of the property will be Rs. 4805 times 1,200. So, it is Rs. 57,66,000.
Stamp Duty Charges=5.6% of saleable value (Rs.57,66,000 lakh) =Rs. 3,22,896.
Registration Charges=1% of saleable value (Rs.57,66,000 lakh) =Rs. 57,660.
The total Stamp Duty and Registration charges will be Rs.3,22,896+Rs. 57,660=3,80,556.
Anand needs to pay the saleable value of the property, Stamp Duty and Registration Charges i.e. Rs. 61,46,556.
If you want to know stamp duty of your property, then we have designed a stamp duty calculator for you and it is completely free to use.
You can avail Zippserv Property registration services either to buy a new property or a resale property in the attached link.
Notes To Be Remembered:
- The buyer or seller must buy the stamp paper. No third person is allowed to buy the stamp papers on behalf of buyer or seller.
- Nowadays e-Stamp papers are available.
- e-Stamping is nothing but a stamp paper generated through a computer based application and a secure way of paying Non-Judicial stamp duty to the Government.
- Few advantages of e-Stampings - Certificate can be generated within minutes, Certificate generated is tamper proof, the authenticity of the certificate can be checked through the inquiry module, it, as has a Unique Identification Number (UIN) and specific denomination, is not required.