What Is Stamp Duty on Property in Bangalore? Avoid Costly Fees

What is stamp duty on property? Stamp duty is a state tax on property documents such as a sale deed, gift deed, or lease deed. In Bangalore, Karnataka, you usually pay stamp duty before or at the time of registration at the Sub-Registrar’s Office. If you want help estimating the exact outgo and avoiding registration delays, speak to our property lawyers in Bangalore.

For most property purchases in Bangalore, stamp duty on property (sale deed/conveyance) is 5% of the market value or consideration value, whichever is higher, plus applicable surcharge and additional duty. Registration charges for the same sale deed are 2%.

There is one important relief many buyers miss: for the first sale of a flat or apartment (typically from a builder to the first buyer), Karnataka provides a lower rate up to ₹45 lakh. In such cases, stamp duty can be 2% or 3%, depending on the value.

So, if you are budgeting for a home in Bangalore, treat stamp duty and registration charges as a must-pay cost, not an optional fee. If you plan for it early, you avoid last-minute stress, delays, and penalties.

Legal Basis and Official Fee Guidance

As an advocate, I always tell clients one simple truth: stamp duty applies to the document, not the story. Even if you paid the full price, a document that is not properly stamped can create serious problems later.

Here is the legal basis in plain words:

• The Karnataka Stamp Act, 1957, sets stamp duty rates through its Schedule (for example, Article 20 for conveyance/sale deed).
• The same Act allows authorities to impound documents that are not properly stamped, and such documents can become inadmissible in evidence until you pay the deficit duty and penalty.
• The Registration Act, 1908, makes registration compulsory for many property documents (like sale and gift of immovable property). If you skip registration where it is mandatory, the document will not protect your ownership rights the way you expect.

Bangalore stamp duty charges (most common cases)

This table keeps it simple. It shows the common rates buyers ask about.

Document/situation (Karnataka)	Stamp duty	Registration fee
Sale deed / Conveyance (most properties)	5% + surcharge/addl duty	2%
First sale of flat/apartment up to ₹20 lakh	2%	2%
First sale of flat/apartment ₹20–₹45 lakh	3%	2%
Gift deed to non-family	5% + surcharge/addl duty	2%
Stamp duty on gifted property to the specified family (BBMP/BMRDA/City Corp.)	₹5,000 (fixed)	₹1,000 (fixed)

Summary: In Bangalore, stamp duty on property is usually 5% for a sale deed, and registration charges are 2%. Gift deeds and first-sale apartments can follow special rules.

Key Exceptions and Real-World Scenarios

This is where people get confused. Stamp duty is not one flat number for every case. It changes with the type of deed, property type, value, and sometimes the local body limits.

1) Stamp duty is calculated on market value, not just the price you mention

When you register, the Sub-Registrar looks at:

• the consideration value (the price in your deed), and
• the market value/guidance value (government-assessed value for that area)

You pay duty on whichever is higher. If you disagree with the value assessed at the Sub-Registrar Office, the department can keep the document pending and send it for valuation determination.

Practical tip: Before you sign, check the guidance value on the official Kaveri Online Services portal and compare it with your deal value. This one step prevents surprises.

2) Special relief for first sale of flats/apartments (up to ₹45 lakh)

Many people search for what is stamp duty on property and assume 5% always applies. It does not.

For a first sale of a flat or apartment (typically the builder’s first transfer), Karnataka provides a lower rate:

• Up to ₹20 lakh: 2%
• ₹20 lakh to ₹45 lakh: 3%

If your property value is above ₹45 lakh, the normal conveyance rate usually applies.

3) Bangalore stamp duty charges include extras in many cases

In practice, buyers often see a surcharge and additional duty on top of the base stamp duty. These can depend on:

• whether the property falls under BBMP/BMRDA/City Corporation, or
• other municipal limits.

Because these add-ons can change by location and notifications, you should always confirm the final payable amount using the official stamp duty and registration fee table published by the Department of Stamps & Registration, Karnataka, and the Kaveri calculation before payment.

4) Stamp duty on commercial property

People ask this a lot: stamp duty on commercial property in Bangalore.

For a commercial sale deed, Karnataka generally applies the same conveyance rule as other sale deeds: 5% stamp duty plus applicable surcharge and additional duty, and 2% registration fee.

Where commercial transactions differ is often in:

• Lease deeds (rate varies by lease period and rent structure), and
• Special arrangements like licences, long-term leases, or transfers of lease.

5) Stamp duty on gifted property (gift deed) is not the same as a sale

A gift is a transfer without consideration. The law treats it differently.

In Karnataka:

• If the donee is not a family member, stamp duty is usually 5% plus surcharge and additional duty, and the registration fee is 2%.
• If the donee is a specified family member, Karnataka provides fixed, concessional stamp duty.

In BBMP/BMRDA/City Corporation limits, the fixed stamp duty is commonly ₹5,000, and the registration fee is ₹1,000.

Who counts as “family” for this concession? Karnataka defines family for certain concessional stamp duty purposes to include close relations such as father, mother, husband, wife, son, daughter, daughter-in-law, brothers, sisters, and grandchildren. If you are handling an inheritance transfer after a death, this guide on the transfer of joint property on death can help you plan the right paperwork.

6) Agreement to sell vs sale deed: do not mix them up

An agreement to sell only records the promise to sell. It does not, by itself, transfer ownership. A sale deed transfers ownership.

If you take possession based on an agreement, stamp duty can change. If you are unsure, get the instrument vetted before payment. Wrong stamping is a common reason documents get delayed.

7) What happens if you underpay stamp duty?

Under the Karnataka Stamp Act, authorities can:

• impound an instrument that is not duly stamped, and
• treat it as inadmissible in evidence until you pay the deficit duty and applicable penalty.

What this really means is simple: a small “saving” today can become a bigger legal problem tomorrow, especially during resale, loan processing, or a dispute. These issues often surface later as property disputes in Bangalore, when someone challenges the document, value, or title.

Why Stamp Duty Matters (And How It Fits Your Registration)

Stamp duty feels like a painful add-on. But it serves two important purposes:

1. It creates a legal record that supports your claim over the property.
2. It funds state administration and local development through stamp collections.

Step-by-Step: How to calculate stamp duty on property in Bangalore

Documents you typically need at the Sub-Registrar Office

(Exact list can differ by case, but these are common.)

• Draft sale deed/gift deed (final version)
• Khata extract and certificate (where applicable). If you are unsure what you hold, see the difference between A Khata and B Khata.
• Latest Encumbrance Certificate in Karnataka (EC)
• ID proofs: Aadhaar, PAN (buyer/seller/donor/donee)
• Latest tax paid receipts/utility proof (as applicable)
• Builder documents for apartments (OC, CC, approvals) where relevant
• Bank loan papers if the purchase is funded

Time and planning

Many registrations happen smoothly in a single appointment when:

• The deed is correctly drafted,
• The value matches guidance norms,
• Stamp duty and registration fee calculations are correct, and
• All parties and witnesses carry proper IDs.

Our Practical Take from 20+ Years in Bangalore Property Matters

After two decades of handling property registrations and disputes, I can say this plainly: stamp duty is not just a payment. It is your first layer of legal safety.

Here are the three mistakes that later turn into court cases. When matters escalate, our civil lawyers in Bangalore typically see the same patterns again and again:

1. Understating the value of “save duty.”
   • This creates valuation objections, delays, and risk of penalties.
2. Using the wrong instrument
   • People try to use a “settlement” like a sale, or a “gift” like a family arrangement, without understanding the consequences.
3. Ignoring the chain of title and encumbrances
   • Even if your stamp duty and registration are perfect, a weak title can collapse the deal.

Our approach at Prashastha Legal stays practical. We do not drown you in legal terms. We help you:

• Confirm the right deed type,
• Verify title and encumbrances,
• Apply the correct stamp duty rule,
• and complete registration without avoidable delays.

FAQs

Get Clarity Before You Pay Stamp Duty

If you feel stuck on one of these questions, you are not alone:

• Why is the Sub-Registrar asking for a higher value?
• Does your flat qualify for the 2% or 3% first-sale benefit?
• Should you use a gift deed, settlement deed, or sale deed for your family transfer?
• Are you worried about title risks, EC issues, or document delays?

At Prashastha Legal, we help property buyers and families in Bangalore get clear answers and clean paperwork. Speak to our property lawyers in Bangalore before you pay stamp duty or sign the deed. One quick review can save you weeks of delay and years of dispute. Contact Prashastha Legal to book a property document review and registration guidance session.