Stamp duty and registration charges are imposed by the state governments on any property purchase as per the pre-set rate. Paying these fees are mandatory, and failing to do so will not transfer the ownership of land, which carries legal implications.
Therefore, receipts of registration and stamp duty in Bangalore serves as a legal document of the ownership of a particular property.
What is stamp duty and registration charges in Bangalore?
Stamp duty fee varies from place to place and is decided by the state government. The current stamp duty fee in Bangalore’s current stamp duty fee is 2% for properties under Rs.20 lakh, 3% for properties whose value ranges between Rs.21 lakh to Rs.45 lakh and 5% for properties above Rs.45 lakh.
Along with paying the stamp duty fee, buyers will be required to pay 1% of the total value of the property as one’s registration charges.
Stamp duty is a legal charge payable on the sale agreement. Property buyers pay the stamp duty to the sub-registrar of the area where the property is located.
How is stamp duty in Bangalore calculated?
Individuals willing to buy a property in Bangalore can calculate stamp duty charges by following the steps mentioned below.
Step 1: Go to Kaveri Online Services portal
Step 2: Select the document’s nature from the drop-down menu
Step 3: Select the region type – BBMP, Municipal Corporation, City Corporation, gram panchayat, town panchayat and other details like indicative market value and indicative consideration amount. In case one is not aware of the market value can know it by clicking the ‘Calculate Market Value’ tab to proceed
Step 4: Right after filling in the details, the calculator will show the total stamp duty payable to the government
These easy steps will help property buyers to know the stamp duty and registration charges related to the property they are looking for.
Factors that determine stamp duty charges in Bangalore
Stamp duty charge depends on certain parameters. The factors are as follows:
Property’s age: The age of property plays a crucial role in setting stamp duty charges as older properties are cheaper as compared to new properties. Buyers will have to pay a higher stamp duty fee for a new property than an old property.
Age of a property holder: Senior citizens are granted subsidies on stamp duty; as a result, they have to pay comparatively less stamp duty charge.
Owner’s gender: Generally, women property owners pay a subsidised stamp duty fee than men in many parts of India. However, that is not the case in Bangalore. In Bangalore, stamp duty rates are the similar for men and women,
Usage of property: Whether the property is for commercial use or residential use affects the stamp duty rate. Commercial properties tend to attract more stamp duty rates than residential properties.
Property’s location: For properties located in urban areas, stamp duty levied is higher in comparison to properties located in rural or suburban areas.
Amenities: Properties with more amenities will charge more stamp duty rate than a property that has fewer amenities. Properties with amenities like a community hall, swimming pool, elevators, gym etc., can also influence the stamp duty charges.
Stamp duty varies depending on these parameters; therefore, property buyers can take the assistance of a stamp duty calculator to compute the stamp duty fee instantly that is to be paid on the property.
As stamp duty and registration charges adds up to the additional expenses, availing home loan can act as a respite. However, borrowers will have to meet the home loan eligibility criteria.
One can use the home loan EMI calculator to compute the EMI payouts beforehand. It will help borrowers manage their finances better and pay EMI on time. Paying out EMIs on time further improves the eligibility criteria.
Property buyers can check the pre-approved offers extended by leading NBFC’s on financial products like home loans, loan against property etc. These offers streamline the lending process. Individuals can check the pre-approved offers by entering their name and contact details.
Borrowers who are wondering how to apply for home loan and whether it will cover the stamp duty fees and registration charges. It is also crucial to note that home loans will not cover the additional charge levied by stamp duty and registration charges.
Overall, stamp duty in Bangalore is an essential document as it serves the legal status of one’s property transaction. Moreover, not paying them on time can also lead to penalty charges, which will further increase the cost of owning a property.