One should consider the cost of registration and stamp duty while calculating the cost of buying property. Paying stamp duty is a compulsory part of the process that involves buying property. The process for Calculating Stamp Duty and Registration Charges for Karnataka is the same as other regions. The value of the property is first assessed. This is done by considering both the circle rate and the market rate. The circle rate refers to the minimum amount for which the property can be sold in a particular area. This rate is fixed by local regulatory authorities. This is done in order to ensure that both buyers and sellers have a fair idea of the cost of the property in a particular area. The market rate is the rate agreed to by the buyer and the seller. The market rate is always higher than the circle rate. The stamp duty is calculated on the rate that is higher, which is the market rate.
In general, the cost of the stamp duty is borne by the buyer, but there could be cases where the developer can opt to pick up the cost of the same. The stamp duty varies from state to state. But in general, the stamp duty ranges from three to ten per cent of the value of the property. The rate also varies depending on location. The stamp duty charges for a property located in a rural area will not be the same as the charges for a property located in an urban area. The state government specifies the stamp duty rates for each type of location.
In Karnataka, the property registration charge is 1% of the total value of the property. The stamp duty is 5% of the total value of the property. If the property is in a location that is administered either by the BBMP or BMRDA, then a surcharge of either 2% or 3% is added to the cost of the stamp duty. In general, one can assume that the stamp duty charges for properties located in urban areas will be close to 5.6% and the stamp duty charges for properties located in rural areas will be close to 5.65%. Therefore, if you wish to buy property worth Rs.50,00,000 in an urban area, then, your registration charges will be 1% of that which will be, Rs.50,000. Then, since the location selected is urban, the stamp duty charges will work out to 5.6% of Rs.50,00,000. Then, the stamp duty charges will be, Rs.2,80,000. Therefore, the total cost of the property will be the sum of the actual value of the property, the registration charge, and the stamp duty charge. In this case, it will be Rs.53,30,000. Therefore, when you budget for the property, you need to keep this amount in mind in order to be able to fully cover the cost of the property.
It is to be noted that the government will not permit any reduction in the stamp duty charges. Willful default will attract a penalty or even imprisonment.
In general, the cost of the stamp duty is borne by the buyer, but there could be cases where the developer can opt to pick up the cost of the same. The stamp duty varies from state to state. But in general, the stamp duty ranges from three to ten per cent of the value of the property. The rate also varies depending on location. The stamp duty charges for a property located in a rural area will not be the same as the charges for a property located in an urban area. The state government specifies the stamp duty rates for each type of location.
In Karnataka, the property registration charge is 1% of the total value of the property. The stamp duty is 5% of the total value of the property. If the property is in a location that is administered either by the BBMP or BMRDA, then a surcharge of either 2% or 3% is added to the cost of the stamp duty. In general, one can assume that the stamp duty charges for properties located in urban areas will be close to 5.6% and the stamp duty charges for properties located in rural areas will be close to 5.65%. Therefore, if you wish to buy property worth Rs.50,00,000 in an urban area, then, your registration charges will be 1% of that which will be, Rs.50,000. Then, since the location selected is urban, the stamp duty charges will work out to 5.6% of Rs.50,00,000. Then, the stamp duty charges will be, Rs.2,80,000. Therefore, the total cost of the property will be the sum of the actual value of the property, the registration charge, and the stamp duty charge. In this case, it will be Rs.53,30,000. Therefore, when you budget for the property, you need to keep this amount in mind in order to be able to fully cover the cost of the property.
It is to be noted that the government will not permit any reduction in the stamp duty charges. Willful default will attract a penalty or even imprisonment.
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