Stamp duty is a type of indirect tax levied by state governments on legal property transactions. It serves as evidence of the purchase and sale of a all types of commercial property (shops, showrooms, offices) between two or more entities. The rates for the tax vary from one state to another and are dependent on several factors, including market value, age, location, type, and usage of the property. Likewise, its registration charges may also differ. Let us understand stamp duty registration charges and other details pertaining to Bangalore.

Stamp duty rates for commercial property in Bangalore

CategoryStamp Duty Rate
Values lower than Rs 20 lakh2 percent
Values between Rs 21-35 lakh3 percent
Values surpassing Rs 35 lakh3 percent

Registration rates for commercial property in Bangalore

The registration charges are fixed at 1 percent of the property value. However, there are some additional charges that you should take into account. This includes:

  • Bruhat Bengaluru Mahanagara Palike (BBMP) and corporation added surcharges: 2 percent on stamp duty
  • Bengaluru Metropolitan Region Development Authority (BMRDA) and other surcharges: 3 percent on the stamp duty
  • Affidavit: Rs 200
  • Agreement for sale of property with possession: 5 percent of the market value
  • Agreement for sale of property without possession: 0.1 percent of the market value
  • Deposit of title deed related agreement: 0.1 percent of the market value
  • Lease surrender of commercial property: Rs 100
  • Mortgaged property re-conveyance: Rs 100

How to calculate stamp duty and registration charges in Bangalore?

Visit the official website of the Department of Stamps and Registration, Government of Karnataka. Click on "Stamp Duty and Registration Charges Calculator".  Thereafter, you have to choose the nature of the document from the menu before hitting ‘Proceed’. Then, you have to select all necessary details and click ‘Calculate’. This will help you work out the actual property value and the applicable stamp duty and registration cost.

Example:

Suppose, you are purchasing a commercial property (shop or a showroom) worth Rs 50 lakh in the BMRDA zone.

Then you will have to pay stamp duty of 3 percent as per the official regulation.

3% of Rs 50 lakh = Rs 1.5 lakh

Subsequently, the registration cost will be 1 percent of the property value, which is

1% of  Rs 50 lakh  = Rs 50,000.

However, your total cost will not end at Rs 2,00,000 (Stamp duty + registration). As per official regulations, you will have to pay BMRDA surcharge of 3 percent on the stamp duty amount, which is

3% of Rs 1.5 lakh= Rs 4,500

Hence, your total cost will be Rs 2.04 lakh in this case.