Sunday, March 29, 2020

Stamp Duty and Registration fee in Bangalore


Are you planning to buy a home or on top of that a first time home buyer?
 A lot of you, who are thinking to get a home or flat from real estate developers in Bangalore, might or might not have heard the terms called stamp duty and registration fee. So basically, while buying any property you will end up paying the market value of that property with stamp duty and registration fee. 
 We should also understand about real estate stamp duty and Registration Process in real estate. Stamp duty is a tax levied on any kind of transaction that takes place and is documented. These may include a conveyance deed, sale deed, power of attorney, etc. Technically speaking, it is a tax that is paid for acquiring any document or instrument that facilitates the creation, transfer, limiting, extending, extinguishing or recording any right or liability. Stamp duty came into existence after the passing of the Indian Stamp Act in 1899. After the stamp duty is paid, these documents or instruments become legally valid and have evidentiary value in a court of law.
There are three ways in which you can pay stamp duty for the new property you are about to own. You may consider payment through non-judicial stamp paper, e-stamping, or franking, that is you pay the duty through some franking agency or a bank that is authorized to accept such a payment.
After having completed the payment of stamp duty, the document goes through a process of registration with the help of the Sub-Registrar of Assurances where the property is located. This procedure is defined in detail by the Indian Registration Act of 1908. This is done in order to record the proper execution of the document so that you get legal ownership of the newly acquired property.
If you are planning to buy Real estate properties in Bangalore and have a set budget, you must consider the amount you will have to pay for getting your property registered. As per the ongoing rates, you are required to pay 5% of the total or registered property value (above Rs 20 lakh) as stamp duty and 1 percent of the total or registered property value as registration fee in real estate properties in Bangalore.

stamp duty and
Registration Process in real estate Bangalore, Karnataka
Gender
Stamp Duty rates
Registration Charges
Male
5% on properties above Rs 20 lakh
2% on properties less than Rs 20 lakh
1% of the property value
Female
5% on properties above Rs 20 lakh
2% on properties less than Rs 20 lakh
1% of the property value
Joint (Male + Female)
5% on properties above Rs 20 lakh
2% on properties less than Rs 20 lakh
1% of the property value
Joint (Male + Male)
5% on properties above Rs 20 lakh
2% on properties less than Rs 20 lakh
1% of the property value
Joint (Female + Female)
5% on properties above Rs 20 lakh
2% on properties less than Rs 20 lakh
1% of the property value

It is good to know the process of buying a property, because, when we buy one, it is not just the market value of the property as well as we also end up paying the stamp duty and the registration charges.



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