Stamp Duty and Registration Charges in Bangalore 2024

 

Stamp duties and registration fees are taxes imposed by the government in the event of a purchase of a property and even on the transfer of ownership of a property. These taxes ensure that the transaction is legally valid and recognised as ‘Proof of Right’ by the law. While stamp duty is influenced by the market value of the property, registration fees are the charges that go into registering every property document by the local Sub-registrar to confirm the location and address of said property. Because of this, the applicable taxes vary from state to state.

In Bengaluru, the stamp duty typically ranges between 3–5% depending on the location and value of the property while the registration charges come around 1–2%. As a part of the property registration charges, an additional cess and surcharges are also applicable. For urban areas in Bengaluru, a cess of 10% and a surcharge of 2% are levied on properties above Rs.35 lakh.

Stamp Duty rates in Bengaluru:

• Properties above Rs.45 lakh — 5%
• Properties between Rs.21–45 lakh — 3%
• Properties less than Rs.20 lakh — 2%

In Bengaluru, the applicable fees are the same for both genders. The registration charge is 1% of the property value.

Stamp Duty and Registration Charges in Bengaluru for 2024

While the above rates represent the current trends, the government of Karnataka, as recently as December 11, 2023, passed a bill that raises stamp duties on many property transfer instruments.

In urban areas, the stamp duty for property partitions converted for non-agricultural purposes will rise from Rs.1,000 per share to Rs.5,000 per share.

In gram panchayats, the stamp duty for such property partitions will increase from Rs.500 per share to Rs.3,000 per share. Additionally, the stamp duty for agricultural property partitions in gram panchayats will escalate from Rs.250 per share to Rs.1,000 per share.

To know the stamp duty charges of the property you are interested in, simply log on to Kaveri Online Services and fill in the details of your property to know the amount you’ll have to pay.

Besides the specific state-wise allotment of the taxes you have to pay when purchasing a property, several general factors influence the percentage of the charges. They include:

Property type: The tax applicable to commercial properties exceeds that of residential homes as commercial properties include several additional features and amenities compared to a residential property.

Location: The property’s geographical location significantly influences the tax charges, with rural and semi-urban areas generally incurring lower stamp duty and registration charges in Pune.

Market value: The calculation of current stamp duty and registration charges takes into account both the total area and the market value of the property.

Owner’s age & gender: The government extends additional concessions based on the age and gender of the property owner. Senior citizens and women may qualify for subsidized stamp duty and registration charges as part of these concessions.

First-time home buyers: Individuals buying a home for the first time are eligible for a maximum of Rs.2.5 lakh exemption on their stamp duty.

Ready reckoner rate: Also called a circular rate, the ready reckoner rate also influences the stamp duty calculation. These rates depend on the area and restrict the sale of a property below a specific amount.

Buying a home is one of the most important decisions a person will make in their lifetime. It is a measure of steadfast commitment and hard work. To make this endeavour successful, it is not only important to consider the property price by itself but also the various associated taxes that get invoked so that he or she is aware of it to make this process a smooth experience.

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Originally published at http://realestateandepc.wordpress.com on December 20, 2023.

Stamp Duty and Registration Charges in Mumbai 2024

 

Mumbai city is a prime real estate market. The influx of urbanisation, commercial and professional opportunities, hubs for multi-national businesses and improving connectivity become factors in pushing the property margins up. With land becoming a scarcer and more valued commodity, every sale or purchase is a significant contribution to the revenues of the government of Maharashtra.

Two of how the government earn with the sale of properties are stamp duties and registration charges. Take for example what occurred in 2020. When the real estate industry faced a slump, the Maharashtra Government reduced stamp duty charges from 5% to 2%. This led to a boost in property sales.

For a home buyer in Mumbai, in addition to the two fees, they have to pay an additional 1% extra stamp duty in the form of a metro cess tax. In total, this raises the tax to up to 6%.

Understanding Registration Charges

Registration charges are the fees paid for registering the property under the buyer’s name. This process provides legal sanctity to the property transaction.

Understanding Stamp Duty in Mumbai

Stamp Duty functions as a property tax where a tax is imposed by the state government on purchasing a property. Maharashtra pays some of the highest stamp duties in the country. To understand the amount you would have to pay in duties is dependent on several factors, including:

Property type: The tax applicable to commercial properties exceeds that of residential homes as commercial properties include several additional features and amenities compared to a residential property.

Location: The property’s geographical location significantly influences the tax charges, with rural and semi-urban areas generally incurring lower stamp duty and registration charges in Pune.

Market value: The calculation of current stamp duty and registration charges takes into account both the total area and the market value of the property.

Owner’s age & gender: The government extends additional concessions based on the age and gender of the property owner. Senior citizens and women may qualify for subsidized stamp duty and registration charges as part of these concessions.

First-time home buyers: Individuals buying a home for the first time are eligible for a maximum of Rs. 2.5 lakh exemption on their stamp duty.

Ready reckoner rate: Also called a circular rate, the ready reckoner rate also influences the stamp duty calculation. These rates depend on the area and restrict the sale of a property below a specific amount.

The Maharashtra government has given special consideration to investors looking to invest in properties in Mumbai by extending the stamp duty waiver for up to 3 years. They now have the opportunity to receive a waiver on stamp duty for resales made within three years of acquiring their property. In these transactions, the stamp duty applies only to the price difference of the property, rather than the entire amount.

For farmland, agricultural land, or residential property, the stamp duty for a gift deed passed on to family members is Rs 200, while for non-family members, the stamp duty is three per cent of the property cost.

Members of housing societies looking to undergo redevelopment are not required to pay stamp duties. At most, they will be required to pay Rs. 100 while the conveyance deed between the developer and the housing society will remain in effect.

Stamp Duty and Registration Fees for 2023–2024

Depending on the location of the property, the duties vary. For areas in gram panchayat regions, the taxes cost 3% of the market value, whereas the municipal regions of urban areas come to about 5% of the market value.

The Maharashtra Government charges a fixed amount of Rs. 30,000 if the retail value of a property is above Rs 30 lakh. However, if the property costs below Rs. 30 lakh, the registration charge is 1% of the property value.

The existing stamp duty rates stand at 5% for men and 4% for women, while registration fees are set at 1% of the property value. In Mumbai, the stamp duty is elevated at 6%, accompanied by registration charges of 1% of the property value.

While these are the current trends observed, the rates can change depending on the ongoing conversations around the cess charges and the appeals for its withdrawal from citizens and realtors as it places further strain on both.

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Originally published at http://realestateandepc.wordpress.com on December 20, 2023.

A Look at the Stamp Duty Rates in Nairobi, Kenya in 2021

 

There are various transactions carried out in any particular country or state – however, out of all of those transactions, fees and rent on land contributes the most to revenue generated by the government. Other charges or taxes include railway development levy, excise duty, import duty, and catering levy, among other things.

In this article, we take a closer look at one of such charges, which is stamp duty, particularly the stamp duty rates in Nairobi, Kenya, as of 2021.

Stamp Duty Act of Kenya

Stamp duty refers to the charge or tax levied on certain transactions such as stocks, shares, and transfer of properties. Stamp duty is one of the primary sources of revenue for the Kenyan government and these rates are determined by Kenya’s Ministry of Land. It includes a physical revenue stamp that is impressed upon the relevant document in order to prove the legality of the transaction. However, in recent times, many places do not require an actual stamp for the stamp duty and other means are used for the same. 

As per the Stamp Duty Act of Kenya, whenever you purchase a property, it is mandatory to pay a fee or revenue to the government. It may help to have a lawyer during the process as that would ensure smoothness of the transaction and also uphold its integrity. 

The stamp duty needs to be paid and the document needs to be signed within 30 days of the acquisition of your purchase. Failing to pay the required amount is considered a criminal offence under Kenyan law. 

Stamp Duty Rates in Nairobi, Kenya – 2021

Stamp duty rates are based on the value of the transaction or are nominal rates on financial exchanges or instruments, as discussed below.

• Stamp duty of four per cent is levied on the transfer of land in towns.
• Stamp duty of two per cent is levied on the transfer of land in the rural areas. 
• A stamp duty of one per cent is charged when increasing the share capital of a company. 
• Stamp duty of 0.05 per cent is charged when registering debentures or mortgages for collateral securities. 
• Properties on lease are charged with a stamp duty of one per cent for the annual rents for three years. After three years, the stamp duty comes to two per cent on the yearly rent. 

There are also times when stamp duty charge is not levied, such as:

• When a company is being registered for very nominal share capital.
• When transferring shares in companies registered under the Nairobi Securities Exchange.
• During Sukuk arrangements or transactions.
• Transfer of houses under the affordable housing scheme.

Kenya Stamp Duty Forms

13 years ago, The Kenya Revenue Authority took over the collection of stamp duty within the country, they have certain guidelines on the handling of stamp duty forms. Some of these guidelines include:

• All forms are completed via the Ministry of Housing and Lands. 
• The quadruplicate is received after the relevant documents are presented. This is what gets the stamp duty. 
• The quadruplicate is handled by an agent, advocate, or duty payer. It is either taken to a National Bank or Kenya Commercial Bank for payment.

After the above-mentioned steps have been completed, this follows:

• The original copy of the payment form is retained by the individual who is carrying out the presentation.
• The quadruplicate is yellow in colour and remains in the bank. The triplicate is green in colour and is forwarded to the registrar of titles and lands. 
• The duplicate is blue in colour and is forwarded to the Commissioner of Domestic Taxes by the bank. 
• The original white copy remains with the duty payer. 

Each valuation of stamp duty is done before a collector starts endorsing a property. 

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Howrah Stamp Duty & Registration Charges in 2021 – West Bengal

 

The twin city of Kolkata, located on the western bank of the Hooghly river, is the charming metropolis of Howrah. This is a prime location for home buyers with excellent real estate opportunities as well as great connectivity as the gateway to Kolkata. There are plenty of high-quality, well-designed residential projects to choose from with a range of prices to fit all kinds of budgets. However, what homebuyers also need to account for in their budgets is the additional charges of Stamp Duty and Registration Charges which are a vital part of the home buying process.

So on what basis are these prices determined? Every buyer partaking in a property-related transaction needs to pay a certain amount of stamp duty and registration charges to the West Bengal Revenue Department. This entire process is now quite easy and convenient through the online process using the West Bengal Registration portal.

There are certain predetermined charges based on the location of the property and the cost of the property as detailed below.

 https://wbregistration.gov.in/(S(pild3rwiau4rhue31rm2mjpg))/Stamp_duty.aspx

For Howrah in particular, the registration charges is 1% and the stamp duty for properties less than Rs.25 lakh is 6% whereas for properties above Rs.40 lakh it is 7%. This percentage is also applicable for other major cities in West Bengal such as Kolkata, Siliguri, Durgapur, and Kharagpur. There is currently no discount on stamp duty and registration charges for female homebuyers in West Bengal.

Homebuyers can also follow the below step-by-step process to calculate their specific stamp duty calculator for properties in West Bengal:

1. Visit the West Bengal Registration Portal.
2. Click ‘Stamp Duty and Registration Fee’ from the left menu.
3. Choose the type of transaction from the drop-down menu.
4. Choose the local body where the transaction took place.
5. Mention the market value of the property.
6. Enter the captcha and the details will be displayed on the screen.

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