Stamp Duty & Registration Charges in Karnataka | Kotak Mahindra Bank

25 JUNE, 2021

While purchasing a residential or commercial property in Karnataka, you must have often heard the terms stamp duty and registration charges. As a buyer, you must pay these on the purchase of any property in the state. Stamp duty is a tax that you pay to the State government on the transfer of a property from the seller to the buyer.  This charge differs in every State of India and is based on the market value of the property you buy. On paying the stamp duty, your documents are stamped and made legally valid. Whereas a registration charge is the fixed percentage that you need to pay to get the property registered in your name.

How Is Stamp Duty Calculated in Karnataka?

The stamp duty in Karnataka depends on several factors like age of the property, gender and age of the buyer, location, and type of the property, etc. But determining the actual stamp duty can be difficult by considering the above aspects. For simpler estimation, you can use the official online calculator made available by the State government. Not only will you learn about the stamp duty charges applicable but also the surcharge and cess value. Follow the step-by-step procedure to calculate the stamp duty in Karnataka:

 

  • Visit the Kaveri Online Services website (https://kaverionline.karnataka.gov.in/StampDutyCalculator/StampDutyCalculation)
  • Select the nature of your document and click on ‘Show Details’
  • You will be redirected to a page where you must input the region type, indicative market value and indicative consideration amount
  • Values such as the surcharge value, cess value, stamp duty and property registration charges in Karnataka shall be visible
  • In case you don’t know the market value of your property, you can make use of the calculator available on the page for accurate stamp duty estimation

 

With this, you can successfully determine the tax applicable on your transaction. Go through the stamp duty applicable in Karnataka below:

 

Region

Stamp Duty Rate

Registration Charge

Karnataka

2% on properties less than Rs 20 Lakh

1%

3% on properties between Rs 21 Lakh and Rs 35 Lakh

3% on properties between Rs 35 Lakh and Rs 45 Lakh

 

Note: The stamp duty and registration charges in Karnataka are the same for men and women.

 How to Pay Stamp Duty Charges in Karnataka?

You can pay the stamp duty in Karnataka with the help of e-stamping and franking. To stamp your property documents via franking, you must visit an authorised franking centre or bank. For completing the stamping process online, you need to visit the Stock Holding Corporation of India Limited (SHCIL) website. There you will find the option of e-stamping and paying the registration fees.

Property registration process in Karnataka

  • Log on to the Kaveri Online Services website.
  • Create your own user ID through the ‘Register as new user’ option.
  • Once you are logged in, use the ‘online EC’ option given under Services.
  • Follow the instructions given by the website through the process until you reach the EC.
  • You can select the ‘Document Registration’ option given under the tab of pre-registration data entry section
  • You then have to enter the right information successively through various pages including property details, approvals, fee details, etc.
  • After you have done that, you can book an appointment to finish the online process.
  • Once you have gotten an appointment, the buyer, the seller, and witnesses have to go to the registrar’s office.
  • Once there, you have to show your ID to the registrar along with the demand draft for the amount that the seller has to be paid by the buyer.
  • You can then sign the registry and the places in the property documents you need to and complete the registration.

 

Frequently Asked Questions (FAQs)

Can you get a refund of the stamp duty paid in Karnataka?

Yes, you can get a refund on cancelling the e-stamp certificate in Karnataka.

Is it possible to claim tax benefits for stamp duty and registration charges in Karnataka?             

Yes, you can claim tax benefits on the stamp duty and registration charges under Section 80C of the Income Tax Act.

What are the consequences of not paying the stamp duty charges?

A penalty will be levied on the stamp duty and the document could be impounded when presented to any public officer, if the document is not duly stamped.

Hence, one should be aware of the stamp duty and registration charges before applying for a home loan and buying a house in Karnataka.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.