In Karnataka, the process of registering a gift deed and property registration is regulated under the Indian Registration Act, 1908, and the Karnataka Stamp Act. A gift deed is a legal document that voluntarily transfers ownership of property from the donor to the donee without any exchange of money. To ensure its validity, the gift deed must be registered. In Karnataka, the Stamp Duty Fees and Registration fees on the Gift Deed for the property varies between Family Member and Non-Family Members. The important party involved in the Gift Deed are Donee and Donor.
Gift Deed Charges in Karnataka:
Gift Deed Type | Stamp Duty Fees | Registration Fees |
(i) If Donee is not a family member of donor | 5% on the market value+ Surcharge + Additional duty | 1% |
(ii) If Donee is a specified family member of donor | Rs.5000 for BMRDA , BBMP and City Corporation Rs.3000 for City/Municipal Council / Town Panchayath Rs.1000/-Others | Rs.500/- fixed |
Stamp Duty Rates in Karnataka:
The stamp duty in Karnataka is based on the property's value and is applicable uniformly across different buyer categories. The rates are as follows:
Property Value | Stamp Duty Rate |
Above ₹45 lakh | 5% of the property value |
Between ₹21 lakh and ₹45 lakh | 3% of the property value |
Below ₹20 lakh | 2% of the property value |
In addition to the stamp duty, a registration charge of 1% of the property’s value is also applicable. Example Calculation of Stamp Duty and Registration Charges in Karnataka, For a property valued at ₹40 lakh:
Stamp Duty: 3% of ₹40 lakh = ₹1.2 lakh
Registration Charge: 1% of ₹40 lakh = ₹40,000
Total Charges: ₹1.2 lakh (Stamp Duty) + ₹40,000 (Registration Charge) = ₹1.6 lakh
Registration charges on Property in Karnataka:
When purchasing property in Karnataka, you need to pay stamp duty and registration charges to the Department of Stamps and Registration, Government of Karnataka. The charges vary depending on whether the property is located in an urban or rural area.
Type of Fee | Amount |
Registration Charge | 1% of the property value |
BMRDA and Other Surcharges | 3% of stamp duty |
BBMP and Corporation Added Surcharges | 2% of stamp duty |
BBMP, BMRDA, and Village Areas Added Cess | 10% of stamp duty |
Note: In rural areas, the BBMP and Corporation added surcharges and cess do not apply, as these are specific to urban areas.
Factors Influencing Stamp Duty and Registration Charges in Karnataka:
Several key factors can impact the stamp duty and registration charges in Karnataka
Property Value: The stamp duty increases with the property's value, following a tiered structure.
Location: Properties in urban areas, particularly within city limits like BBMP, may be subject to additional surcharges or cess.
Property Type: Different rates may apply depending on whether the property is residential, commercial, or agricultural.
Government Policies: State policies and budget changes can influence the rates, potentially introducing new surcharges or offering concessions.
Special Concessions: Certain categories, such as first-time homebuyers or those purchasing properties in affordable housing schemes, may be eligible for discounts or exemptions.
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Exemptions and Concessions in Karnataka Stamp Duty:
Under Section 80C of the Income Tax Act, 1961, you can claim tax benefits for expenses related to stamp duty and registration charges, with a maximum deduction limit of ₹1,50,000. However, this exemption is applicable only to new properties and does not cover commercial properties, residential plots, or resale properties. Understanding the applicable rates and payment process for Karnataka house registration charges is essential, as it is a mandatory legal requirement.
Property Registration Process in Karnataka
Log on to the Kaveri Online Services Website:
Visit the https://kaveri.karnataka.gov.in/
Create Your User ID:
Select the 'Register as new user' option and create your account by filling in the required details.
Log In to Your Account:
Once registered, log in using your credentials.
Access the 'Online EC' Option:
Under the 'Services' section, click on the 'Online EC' (Encumbrance Certificate) option.
Follow the Website Instructions:
Follow the on-screen instructions to proceed through the process until you reach the Encumbrance Certificate (EC) stage.
Select 'Document Registration' Option:
Navigate to the 'Pre-Registration Data Entry' section and choose the 'Document Registration' option.
Enter Property Details:
Provide the required information, including property details, approvals, and fee details, across the various pages.
Book an Appointment:
Once all details are entered, you can book an appointment to complete the registration process online.
Visit the Registrar's Office:
On the scheduled appointment date, the buyer, seller, and witnesses must visit the registrar's office.
Present Identification and Payment:
Present your identification documents and the demand draft for the payment amount to the registrar.
Sign the Registry Documents:
After verification, sign the registry documents to complete the property registration.
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