Registration and Stamp duty charges in Bangalore

There are always some property charges which are to be paid to the government and most of the times clarity on the same isn’t available. Stamp duty and registration charges are two such costs that add to your overall value of the apartment.

  • What is Stamp Duty?

Stamp duty is a form of tax levied on documents or transactions and it differ from state to state. In Bangalore, for sale deeds, the current stamp duty is 5.65%, including surcharge and cess, of assessable value.

  • What is registration fee?

Registration fee is levied for the registration of documents under the provisions of Registration Act, 1908. The registration fee for a sale deed is 1% of assessable value.

  • What is the assessable value of the property?

The assessable value of the property has 4 components. This has had a lot of changes since 1st August 2013

Saleable Area value –  Saleable area X guidance value.

Car Park Value – Calculated on basis of saleable area value

Floor Rate Value – For units located on the 5th floor or above

Amenities’ Value – For units located on the 5th floor or above

All these add up to the assessment value of a property.

  • How is the saleable area value different for apartments, plots or individual houses?

Saleable area value is calculated differently for each:

Individual flat – Super built up area of the flat X Guidance value

Plots – Sq. ft. area of the plot X Guidance value

Independent houses – Total area on which the house is constructed X Guidance value

  • What is guidance value?

Guidance value is the per sq. ft. Value fixed for a particular road/ area, below which one cannot register a property. The guidance value changes depending on the area where the property is located. Rural areas tend to have higher guidance values.

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