Under Section 3 of the Indian Stamp Act 1899, the GOI mandates the payment of stamp duty and registration fees while purchasing a property. Property buyers must know the stamp duty in Bangalore before buying a property there.
The following charges authenticate the sale agreement and keep a record of the property. Stamp duty of a place depends on the ready reckoner rate or the property’s value, whichever is higher.
Factors that determine stamp duty charges in Bangalore
The stamp duty charge in Bangalore is 5% on properties above Rs.45 lakh, 3% on properties between Rs.21-45 lakh. In 2019, the stamp duty was slashed from 5% to 2% on properties less than Rs.20 lakh. The Registration fee is 1% of the property value.
There are certain parameters on which the stamp duty in Bangalore depends:
- Property’s age: With time, the worth of property depreciates and that is why stamp duty for older properties is cheaper than the newer ones.
- Buyer’s age: Senior citizens are granted subsidies on the stamp duty and that is why even age is an important factor in determining the stamp duty rates.
- Owner’s gender: In most states, females pay less stamp duty than men. However, in Bangalore men and women both are charged the same stamp duty fee.
- Location of property: For property located in an urban area, property buyers have to pay a higher stamp duty charge. One will have to pay less stamp duty charge for properties located in a semi-urban or rural area.
- Nature of property: Commercial property demands a higher stamp duty fee as compared to residential building.
- Amenities and other services: The more the amenities in a property, the higher is the stamp duty rate levied on it. Properties with amenities like a gym, children play area, community hall, swimming pool etc., attract more stamp duty fees.
Stamp duty charges are not fixed and change from time to time as per the decision of the Karnataka Government.
Also, borrowers can take help of a stamp duty calculator to know how much stamp duty is payable to the government.
Type of area on which stamp duty in Bangalore is calculated
Different standard of a property is checked before calculating stamp duty:
- A super-built up area is considered for calculation for multi-storey apartments.
- As per the plots are considered, stamp duty is the product of the square feet of the plot and the prevailing guideline value of the area.
- Entire constructed area is considered for independent houses.
Stamp duty and registration charges depend on prevalent market value of a property and its market performance.
Documents required for paying stamp duty in Bangalore
Property buyers are required to submit the following documents at the time of property registration:
- Sale agreement and sale deed
- Khata Certificate
- NOC from apartment association
- Encumbrance certificate
- A registered development agreement for joint development property
Furthermore, for under-construction property Possession letter from builder, builder-buyer agreement, sanctioned building plan are needed.
Stamp duty charge and registration fee is bound to add to the extra expenses while buying a property. Customers can opt for a high-value home loan from several financial institutions to ease the financial stress. However, borrowers must consider home loan eligibility criteria before applying.
Additionally, borrowers must try to keep 750 + CIBIL score for a home loan. Individuals with subpar CIBIL scores can improve by paying the EMI on time, mixing credit instruments and others.
Potential borrowers can avail high quantum loans after calculating monthly loan instalments using a home loan EMI calculator.
For Individuals wondering how to apply for a home loan, it is imperative to note that a home loan does not cover these extra charges.
Borrowers can further look at pre-approved offers extended by several leading financers on financial products like home loans, loans against property etc. These offers accelerate the entire lending process. Individuals can check the pre-approved offers by entering their names and contact details.
To recapitulate, the stamp duty in Bangalore and registration fee are integral are integral to the entire property transaction. It determines that the property is legally transferred to the property buyer.