Menu

Comprehensive Guide to Stamp Duty Calculation for Property Registration in Karnataka

Introduction

Purchasing a property is a significant financial decision, and it involves various legal formalities, including the payment of stamp duty and registration charges. These charges are mandatory under the Indian Stamp Act, 1899 and the Registration Act, 1908, and they ensure the legal validity of property transactions. Karnataka follows a structured approach in levying stamp duty and registration fees, which vary depending on the property’s value and location. Understanding how to calculate these charges helps buyers comply with legal regulations and manage their budgets effectively.

Latest Update on Stamp and Registration Charges in Karnataka 2025

In 2025, the Karnataka government introduced significant changes to stamp duty for certain documents. The Karnataka Stamp Act, 1957 underwent its first amendment in 28 years, leading to a 200%-500% hike in stamp duty for documents that do not require registration. These changes affect 25 different documents, including adoption deeds, affidavits, hypothecation of movables, and company reconstructions. However, property tax remains unaffected.

The revised rates aim to modernize the taxation system, increase revenue, and promote transparency in property transactions.

Legal Framework for Stamp Duty in Karnataka

The calculation of stamp duty and registration fees is regulated under the following laws:
  • The Indian Stamp Act, 1899 (as amended by the Karnataka Stamp Act, 1957): Governs the imposition of stamp duty on property transactions in Karnataka.
  • The Registration Act, 1908: Mandates the registration of property documents and prescribes the applicable registration fees.
  • Karnataka Stamp Rules: Specifies procedural aspects regarding stamp duty payment and property registration.
What is Stamp Duty?
Stamp duty is a tax levied on legal documents to make them legally valid. In the case of property transactions, stamp duty is calculated on the higher of the market value or the transaction value mentioned in the sale deed. It serves as evidence of ownership and is required for the legal transfer of property.
Stamp Duty Rates in Karnataka

The Karnataka government has categorized stamp duty rates based on the property’s value. As per Article 20 of Schedule I of the Karnataka Stamp Act, 1957, the applicable stamp duty rates are:

Property Value

Stamp Duty Rate

Up to ₹20 lakh

2%

₹21 lakh – ₹45 lakh

3%

Above ₹45 lakh

5%

Additionally, property transactions in urban areas attract the following extra charges:
  • Surcharge: 10% of the stamp duty amount.
  • Cess: 2% of the stamp duty amount.
For rural areas, the surcharge is 3% instead of 10%.

Stamp Duty and Registration Charges for Various Deeds in Karnataka

Different types of deeds carry varying stamp duty and registration charges in Karnataka. Below is a quick guide to help you understand the fees associated with various property-related documents:

Document Type

Stamp Duty

Registration Charges

Sale Deed

5% of Market Value

1%

Gift Deed (Family Members)

Fixed charges (₹1,000–₹5,000)

₹500

Lease Deed

0.5%–3% based on lease duration

₹200–₹1,000

Partition Deed

₹500 per share (Agricultural Land)

₹200 per share

Mortgage Deed

5% of Amount/Value (if possession given)

1%

Will Deed

Nil

₹200

Registration Charges in Karnataka

Under Section 78 of the Registration Act, 1908, all property transactions must be registered with the relevant state authority. The registration charge in Karnataka is 1% of the property’s market value, irrespective of the total cost of the property.
How to Calculate Stamp Duty and Registration Charges?
To illustrate the calculation, consider a property transaction of ₹50 lakh:

Charge Type

Calculation

Amount (₹)

Stamp Duty

5% of ₹50,00,000

2,50,000

Surcharge

10% of ₹2,50,000

25,000

Cess

2% of ₹2,50,000

5,000

Registration Fee

1% of ₹50,00,000

50,000

Total Payable

Stamp Duty + Surcharge + Cess + Registration Fee

3,30,000

Key Considerations While Paying Stamp Duty

    1. Market Value vs. Sale Price: The stamp duty is calculated on the higher of the property’s market value or the sale deed amount.
    2. Modes of Payment: Stamp duty can be paid via e-stamping or physical stamp paper purchased from authorized vendors.
    3. Government Rebates: In some cases, women buyers get a concession on stamp duty, subject to government policies.
    4. Penalty for Non-Payment: Failure to pay the correct stamp duty can result in penalties and disputes in ownership rights.
    5. Verification: Always verify the stamp duty amount through the Department of Stamps and Registration, Government of Karnataka to ensure compliance.

Online Tools for Stamp Duty Calculation

To simplify the estimation process, Karnataka provides online stamp duty calculators. Some reliable tools include:
  • NoBroker & MagicBricks Stamp Duty Calculators – Private platforms offering quick estimations based on property details.
Stamp duty and registration charges are essential components of property transactions in Karnataka. By understanding their calculation and adhering to legal requirements, buyers and sellers can ensure a smooth and legally valid property transfer. Using online calculators and seeking expert legal advice can help in accurately determining costs and avoiding disputes.
By staying informed, buyers can plan their expenses better and ensure compliance with Karnataka’s real estate laws, making property ownership a seamless process.

You May Like