Stamp Duty & Property Registration Charges in Karnataka

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 stamp duty 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:

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.

Exemptions and Concessions in Karnataka Stamp Duty

Section 80C of the Income Tax Act 1961 provides tax benefits for expenses related to stamp duty and registration charges, with a maximum deduction limit of ₹1,50,000. It is important to note that this tax exemption only applies to new properties and not to commercial houses, residential plots, or resale property. Understanding the rates and payment process for Karnataka house registration charges is crucial, as it is a mandatory requirement.

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.

Key Points to Remember before Paying Stamp Duty in Karnataka

There are a few essential points to consider before paying stamps and registration Karnataka:

• The Karnataka stamp paper should be issued within six months of the transaction date.
• All assets eligible for stamp duty must be stamped before registration.
• All parties involved in the transaction must sign the stamp paper.
• Adhesive stamps removed during execution cannot be reused.
• Gift deed house registration charges in Karnataka for non-family transfers are 5% of the property’s market value plus surcharges and cess, along with a 1% registration cost of Rs.1000 + tax + cess. The registration fee for a transfer to a family member is set at Rs.500.

What Are the Factors That Affect Stamp Duty in Karnataka?

Various factors impact the stamp duty and registration charges in Karnataka. The property's age affects its value and, ultimately, its stamp duty price. Additionally, senior citizens are charged a lower rate than younger buyers. While some states in India offer lower rates for women, in the land registration process in Karnataka, both genders have to pay the same stamp duty fee.

The nature and location of the property also affect the Karnataka property registration charges; commercial properties attract higher stamp duty rates, and properties located in urban areas also have higher expenses. Moreover, providing more services and amenities increases the stamp duty charges. You get an estimate of the costs with the Karnataka stamp duty calculator.