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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)
Registration Charge | 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.
Please include details on how to arrive at value of resale flat based on age of flat. Is it only based on guidance value or there is a calculation to consider depreciated value of the flat?
Dear Muttu,
We are going to explain in detail in our coming blog posts about how to arrive at the value of resale flat based on the age.
Actually, there are lot more other factors which are to be included to calculate the value of the property.
Unfortunately, In Karnataka, there is no such concept of depreciation applicable while calculating the resale value of the flat.
In other places like Pune, Mumbai and some other states there are clear guidelines on depreciation and its use for resale properties.
In Our next blogs, we will definitely come with some solutions you face.
Thanks and Regards,
Zippserv Team
I like the post Its has nice article It's really effective and very impressive, We hope this information will help everyone.
HI
can you pls confirm if the Home loan (nationalized Bank)
is sanctioned as per Agreement Value or Guidance Value of the property (Resell Independent House
regards
Dear Mr. Roy,
In this case the bank will do an independent valuation of the property. We call that as consideration value.
For Example, you want to buy a property whose guidance value is 50,00,000 Rs. As per Agreement, it is 1.2cr.
So The nationalized bank won't sanction 1.2 cr. After valuation, let's say the price came to be 80,00,000 INR.
So the bank will sanction 80% of the consideration price.
Regards,
Zippserv
I. Wanted to sell my property measuring 1500sft building built on 600sft plot,Age of the property is 10years,at Kumaraswamy layout,Bangalore.please suggest me what is the minimum guidence value for which this property can be regitered
let me know what is the registration value for 2600sqft builtup area at hulimavu, GF 750sqft Granite flooring, 1st Floor & 2nd 925sqft marble flooring,
thanks for the post, really his post very impressive and in a effecive way.
I am buying a property in BANGALOR. Project name is Icon. The price break up is land 48 lakhs, construction 83 lakhs and taxes plus maintenance deposit 16 l. Builder is saying we have to pay stamp duty on total cost including tax and maintenance deposit. Is this correct way to calculate the stamp duty and registration charges?
I want to register. It's a 600 sq. Feet plot and constructed 450sq with RCC in TG Layout in Ittammadu pl let me know the registration charges.
Hi,
Thanks for sharing the knowledge this is very helpful. I am buying a properly which has the BMRDA approval. I am told the stamp duty and reg under BMRDA can be paid based on guidance value not necessarily sale value, is this correct, please advise.
Please tell me what is the guidance value for flats in Frazer Town, Bangalore (Off Mosque Road). The property is about 650 sq. ft,, mosaic flooring, 27 years old construction.