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Plot Stamp Duty Fees and Registration charges in Bangalore

This article is a breakdown of stamp duty fees and property registration charges in Bangalore. Continue reading to learn how to pay stamp duty fees online which will save you time and money.

Bangalore’s streets, like its population, are constantly bustling. Purchasing a new home in a big city where the majority of the population has gone for work might be difficult for many. The most difficult bits of information are usually the procedures to follow, the documentation that will be necessary, and the cost that must be budgeted for.

The Karnataka state government has established the stamp duty fees and property registration charges in Bangalore, which are detailed below.

Plot Registration Charges in Bangalore

The plot registration charges payable to the Karnataka state government for each new registration are one per cent of the total value of the property. Hence, for example, if the value of your plot of land is 40,000 INR, the registration fee to be incurred will be 400 INR.  Unlike stamp duty and other fees, the proportion of the registration fee is fixed and does not change depending on factors such as the overall cost, location, and so on. The fee is applicable to both commercial and residential properties.

Plot Stamp Duty in Bangalore

The calculation of the plot stamp duty in Bangalore can be done based on the following table that lists the current stamp duty rates. Furthermore, you can use the cost calculator here, for calculating your stamp duty fees and registration charges.

Type of Charge Applicable Rate
Property registration  1% of the property value
Stamp duty 5.6% on properties above Rs. 20 lakh

2% on properties less than Rs. 20 lakh

Cess 10% on the Stamp Duty
Surcharge 2% on the Stamp Duty (urban areas)

3% on Stamp Duty (rural areas)

For instance, if the rate of your 1000 sqft plot, located in an urban area is 5000 INR per sqft, the saleable value of the plot will be 1000×5000=50,00,000 INR

This basic cost will incur a registration fee of 1% which will be: 50,00,000×1%= 50,000 INR

And the stamp duty charge on this value will be: 50,00,000×5.6%= 2,80,000 INR

The total additional cost to be paid can add up to be a significant amount, however, the charges are necessary to file the paperwork that will lend legitimacy to your property. A property without the complete paperwork will not be able to be resold for its actual value.

Furthermore, these charges are paid as a tax towards the government and are one-time charges only. Thus, paying these in full is in your best interest.

How to Pay Stamp Duty Online

Step one: Open the official website for e-stamping services.

Step two: If you are a new user, click on “e-registration”, then choose “secure login”, click on “new registration” and fill out the short registration form. Registration is mandatory for using the website and availing of its services. Although, the registration process is quick and simple.

Step three: Make sure that the contact information you enter in the registration form is valid. The validity of the e-mail address and phone number that you enter is crucial for your registration.

Step four: Create a username and set a password for your account. These credentials will enable you to log into the portal for future use.

Step five: Verify and activate your account through the authentication link sent to your e-mail address. When you click on the link, it will redirect you to the e-stamping website where your registration will now be complete.

Step six: Start filling out the form on the screen. Select your state from the drop-down menu, then select the nearest SHCIL branch, enter other mandatory details for the columns such as first-party name, second-party name, article no., stamp duty paid by, and stamp duty amount. Once you have entered these details, you can generate an online acknowledgement number for future reference to your request.

Step seven: You will have to visit the nearest SHCIL branch to collect physical proof of your payment in the form of a printed hardcopy of the e-stamp certificate.

Step eight: You need to pay the stamp duty fees at the payment gateway, which you can do through cash, cheque, demand draft, pay order, RTGS, NEFT and account transfer.

Major Difference between Sale Deed & Sale Agreement

The two main documents involved in the transfer of land are the sale deed and the sale agreement. Also, knowing the difference between a sale agreement and a sale deed will enable you to protect yourself against fraudulent transactions.

An agreement of sale is, as the name suggests, is simply an agreement or an understanding between two parties that shows that both parties are interested in the prospect of a transaction.

The sales deed is a legally binding document that certifies the ownership of a property. It is mandatory to register a sale deed with the respective office under the Registration Act, 1908.

  The key difference between a sale deed and a sale agreement are listed below:

Sale Agreement Sale Deed
Not mandatory to register in all states Mandatory to register
Only implies that a transfer may take place on a Future date Is the proof of transfer and means immediate Execution of the transfer
The things stated may or may not be completely followed The things stated are already agreed upon and executed
Failure to comply may or may not cause legal issues The failure to comply will lead to serious legal ramifications

The above information on stamp duty and registration fees, as well as the distinction between a sale deed and a sale agreement, will assist you in purchasing a property, particularly a plot of land.  When looking for a construction company in Bangalore to help you realize your vision, you need not look further than Brick&Bolt. Brick&Bolt is one of the leading construction companies in the area that enables you to control and monitor each step of the project without even having to be physically present at the site.

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