Stamp duty tax is a tax you pay when you buy a property over a certain price ‘threshold’. It also depends on whether you’re buying your first home or your next home. How much you pay depends on the value of the property you’re buying.
After the amendment in September 2021, a 3% stamp duty is to be paid for all properties that cost between INR 21 lakh and INR 45 lakh. In the case of properties priced higher than INR 45 lakh, the stamp duty in Mysore will be 5%.
What is stamp duty in Karnataka 2024?
Stamp Duty in Karnataka on Legal Documents Increased
According to the bill passed on 11th December 2023: Affidavits, which currently carry a stamp duty of Rs 20, will incur a stamp duty of up to Rs 100. Stamp duty in Karnataka on Power of Attorney has been increased from Rs 100 to Rs 500.
If you have recently purchased a property in Karnataka, you are liable to pay stamp duty in Karnataka. According to Section 3 of the Stamp Act of India, you must submit this charge to the Revenue Department of your local government. Failure to pay this fee timely incurs penalties and can affect your ownership of that particular property.
You can also read on to know the Karnataka stamp duty and registration fees in a simple way
Stamp Duty Charges in Karnataka
Recently, the State Government has reduced the Karnataka stamp duty charges from 5% to 3% for properties valued at Rs. 35 to Rs. 45 lakhs, curtailing the financial burden on its citizens. However, this decreased rate applies only to the new properties to be registered.
Nevertheless, while transacting this stamp duty, buyers also have to pay registration charges on the newly owned property. So, they must know both the applicable stamp duty and registration charges in Karnataka in 2022 and settle them accordingly to complete their property mutation.
Property Registration Charges in Karnataka
Let’s first know the all applicable charges included during the registration of a property:
| Types of Fee | Charges |
| Registration charge | 1% of the real estate’s value |
| Added cess charge of BBMP (Bruhat Bengaluru Mahanagara Palike), BMRDA (Bangalore Metropolitan Region Development Authority) and Village area | 10% of the stamp duty |
| BMRDA and other surcharges | 3% of the stamp duty |
| Added surcharges of BBMP and Corporation | 2% of the stamp duty |
| Affidavit | Rs. 200 |
| Adoption Deed | Rs. 500 |
| Agreement for selling properties with possession | 5% of the current market price of the estate/ |
| Agreement for selling properties without possession | 0.1% of the market price of the estate (Minimum charge: Rs.500/ Maximum Charge Rs.20,000) |
| Lease surrendering charges | Rs. 100 |
| Property re-conveyance charges for mortgage | Rs. 100 |
| Agreement regarding title deed deposits | 0.1% of the property’s market price |
After knowing these property charges, you need to discover the stamp duty rate in Karnataka.
Stamp Duty in Karnataka on Different Property Valuations
Following is the property valuation-wise payable stamp duty in Karnataka:
| Value of the Real Estate | Stamp Duty Charges |
| Lower than Rs. 20 lakh | 2% |
| Price in between Rs. 21 to Rs. 35 lakh | 3% |
| More than Rs. 35 lakh | 3% |
Stamp Duty on Different Property Deeds in Karnataka
| Property Deeds | Stamp Duty |
| Sale Agreement | In a sale agreement, the buyer is responsible for paying the stamp duty which is calculated at 0.1% of the market value of the property. |
| Loan Agreement | In Karnataka, the minimum amount of stamp duty that a buyer has to pay is ₹500. This is in accordance with Article 6 of the Karnataka Stamp Act, which states that a stamp duty of 0.1% is charged for a loan agreement. |
| Gift (If Donee is not a family member of the donor) | 5 % on the market value + Additional duty + Surcharge |
| Gift (If Donee is a specified family member of the donor) | Rs.1000 + surcharge and Additional duty |
How to Calculate Stamp Duty and Registration Charges in Karnataka?
Karnataka State Government enables its residents to calculate their stamp duty quickly through its portal. Here is a stepwise guideline to know their applicable duties through this online platform:
- Visit Kaveri Online ServicesVisit the ‘Kaveri Online Services’ portal of Karnataka’s Stamp and Registration Department.
- Click on ‘Stamp Duty and Registration Fee calculator’Scroll down to “Services for Guest User’ and click on ‘Stamp Duty & Registration Fee Calculator’
- Select the type of document from the dropdown list new page will open up. Select the document type and click on ‘Show Details’
- Add Other DetailsChoose the region type, indicative consideration amount, and indicative market value. Click on ‘Calculate’.
After these steps, this stamp duty calculator of the Karnataka State Government will display the payable duty and registration charge.
Ways to Pay Stamp duty in Karnataka
It is important to remember that stamp duty charges exceeding Rs. 2000 cannot be paid online in Karnataka, especially in property transactions. Instead, there are two ways to pay the stamp duty charges:
- Buy impressed stamps from licensed vendors or treasury.
- Pay the government through a cheque or demand draft issued by a nationalized bank
How to Pay Stamp Duty in Karnataka Online?
You need to undergo the following steps to pay your stamp duty online:
Step 1: Visit the ‘Khajane-II‘ portal of the Karnataka State Government
Step 2: Scroll down and click on ‘Generate Challan’. A challan form will appear in the next window.
Step 3: Fill in the form with the required details
Step 4: Select department and registration type and the sub-registrar office in the DDO office section, and after that, select agreement of sale in sub-purpose and stamp duty in purpose
Step 5: Provide the stamp duty figure and payment mode, click on submit, and provide the CAPTCHA code
After this, you will get a challan reference number and the receipt of the stamp duty payment. You need to save and print this important document for your future reference.
Procedure to Pay Stamp Duty Charges in Karnataka Offline
Step 1: Visit the local sub-registrar’s office
To pay stamp duty in Karnataka, you must visit the local sub-registrar’s office and submit the necessary documents.
Step 2: Signed Documents
The documents must be signed by both the buyer and seller, and witnesses for property mutation must be present. Stamp duty charges exceeding Rs. 2000 cannot be paid online.
Step 3: Purchase impressed stamps
You can purchase impressed stamps from licensed vendors or treasury, or pay through a cheque or demand draft issued by a nationalized bank. After paying the stamp duty and registration charges, your sub-registrar will authenticate the property purchase documents.
Step 4: Registration Certificate
You will receive your property registration certificate once the authentication is completed.
Factors Affecting Stamp Duty in Karnataka
Here are some basic factors that can influence the applicable stamp duty charges:
- Age of Property: As newer property provides a higher market price than the older ones, their stamp duty also becomes more.
- Property Location: This stamp duty levied on properties in urban areas is generally higher compared to estates in rural areas.
- Amenities: A property with more facilities such as floors, gym, swimming pool etc., incurs higher duty.
- Proprietor’s age: Across several states in India, the property owner’s age also becomes a dependent factor of stamp duty. Generally, senior citizens enjoy a waiver in their applicable charges.
- Gender of the owner: Like senior citizens, female property owners also get reduced duties than their counterparts. However, in Karnataka, this charge is similar for both genders.
- You must not reuse the adhesive stamps removed while executing the property registration process.
Areas Factored While Calculating Stamp Duty and Registration Charges in Karnataka
Stamp duty charges in Karnataka are determined by the state government and may be revised from time to time Here are the various factors that are taken into consideration when determining the charges :
- For plots, the area in square feet is multiplied by the prevailing guideline value to determine the stamp duty charges.
- For flats or apartments, the stamp duty is calculated based on the super-built-up area.
- For independent houses, the total constructed area is considered for stamp duty calculation.
Tax Benefits on Stamp Duty in Karnataka
Section 80C of the Income Tax Act 1961 provides tax benefits on expenses related to stamp duties and registration charges, with a maximum deduction limit of ₹1,50,000. However, commercial houses, residential plots, and resale properties are not eligible for this tax deduction; it applies only to new properties.
Factors to Consider Before Paying Stamp Duty in Karnataka
Here are a few things that you carefully check while paying your stamp duty and plot registration charges in Karnataka:
- You must pay this concerned duty within 6 months of collecting the stamp paper.
- Every record of the property to be registered must have the necessary stamp before registration. At least, you need to complete this on the next workday.
- Ensure that all the collected stamp papers are issued against your name if you are responsible for paying the amount.
Final Word
This subregistrar stamp duty in Karnataka ensures the transfer of ownership of properties within this state to another person’s name. therefore, after purchasing a property in this state, you must pay the amount to establish your legal right to it. The Karnataka state government has come up with its virtual portals to help you calculate and pay your stamp duty effortlessly.
