Flat, land and Property Stamps and Registration charges in Bangalore and India

Do you know the cost of Flat, land and Property Stamps and Registration charges when you buy a property? Many forget the additional expense which buyer has to bear. Let us discuss this cost in detail.

Stamps and Registration charges

When you buy any property, then you must register in your name to claim the ownership of property. Hence, knowing about the registration cost is very much important.

Please note that this cost of Flat, land and Property Stamps and Registration charges depends on state to state. These costs are not uniform in all states. I try to concentrate on Bangalore or Karnataka (as I reside in Bangalore). However, can easily find out the cost Flat, land and Property Stamps and Registration charges of your state by visiting the respective state registration websites.

What is meaning of Flat, land and Property Stamps and Registration charges ?

When you buy a flat, then there are mainly two costs. One is Stamp duty cost and another is Registration Cost. As I pointed above, it changes from state to state.

When you buy or sell any asset or property, then such selling must be documented. You can do it in plain paper too. However, as per legal terms, it is not valid. Hence, by paying the stamp duty as per law of the land you are claiming that the document or agreement is valid.

Stamp Duty is payable under Section 3 of the Indian Stamp Act, 1899It is a type of tax collected by Government to validate your agreement. A stamp duty paid document is considered a proper and legal document and has evidentiary value and is admitted as evidence in courts. Document not properly stamped, is not admitted as evidence by the court.

Usually, while buying the property, it is the buyer who has to bear the cost of stamp duty cost. Respective state governemnts fix Stamp duty.

Along with stamp duty you also have to bear the cost of registration. So both the processes are very much necessary to claim the ownership of property.

What is Flat, land and Property Stamps and Registration charges in Bangalore or Karnataka?

As per Government portal, the current stamp duty charge for Bangalore and Karnataka is as below.

Stamp Duty-5%

BBMP,Corporation, BMRDA & other Village Areas added Cess 10% on Stamp Duty.

BBMP& Corporation added Surcharges 2% on Stamp Duty

BMRDA & other Village Areas added Surcharges 3% on Stamp Duty

Registration Charge 1% on the value of the Property

So this works out to be Stamp Duty charges as 5.6% in Urban Areas and 5.65% in Rural Areas. Registration charges is 1% of the property value.

The detailed cost of such stamp duty and registration charges are listed in Karnataka Government Portal.

How the Flat, land and Property Stamps and Registration charges are calculated?

Stamp duty and registration charges are calculated based on the salable value of property. Before proceeding further, let us understand the new terminology called “GUIDANCE VALUE“. It is the value declared by respective state government for each area of the state. Below this value, registration of selling is not allowed. So the salable value equals to guidance value or actual salable value (whichever is higher).

Refer the latest Guidance Value of Bangalore at our Blog Post “Guidance Value of Bangalore – How it affects property price?“.

Let us say in Bangalore the guidance value of ABC are is Rs.4,000 per square feet. Then your property registration value for that area must not be below Rs.4,000 per square feet. It may be higher, but must not be below it.

Let us take an example of a property, which is situated in area of ABC in Bangalore Urban Area. Say for example the guidance value of this area is Rs.4,000 and you bought the property at Rs.48 lakh measuring 1,200 square feet.

So in this case the value of property for sale is equal to guidance value. Now the calculation goes as below.

Stamp Duty Charges=5.6% of saleable value (Rs.48 lakh)=Rs.2,68,800.

Registration Charges=1% of saleable value (Rs.48 lakh)=Rs.48,000.

So the total Stamp Duty and Registration charges will be Rs.2,68,800+Rs.48,000=3,16,800.

Hence, the buyer of property needs to pay the saleable value of property, Stamp Duty and Registration Charges.

Actual cost or guidance value to mention while buying property?

Now, whether we have to go ahead and register the property at a guidance value to save stamp duty and registration charges? It is mainly done in many cases to avoid the CURRENT cost. But in reality, when you sell the property, you pay more tax on such profit as a capital gains tax.

Many builders guide you to go for registration of property on guidance value to save the current stamp duty and registration charges. But here is the catch, you may currently save the cost. While selling the property, your cost of buying matters you to pay the capital gains tax. Because the property buying price is fixed by Cost of Inflation Index.  Let me try to illustrate this from below example.

Let us say you bought the property at Rs.40 lakh in the FY 2000-01. You Mr.X planned to go for registration with full saleable value of Rs.40 lakh. However, your friend Mr.Y planned to save some stamp duty and registration charges. So he planned to go for Rs.30 lakh saleable value (which let us consider the guidance value of that property in FY 2000-01).

Let us consider both sold the property in the FY 2010-11 for Rs.75 lakh. In this case, who will pay more tax? Take the below calculation and see how Mr.Y currently might save some Stamp Duty and Registration Charges. However, when he sold the property, he paid the more Long Term Capital Gain Tax on it.

Flat, land and Property Stamps and Registration charges

Do remember that as the tenure of selling goes higher the difference of taxation widens between Mr.X and Mr.Y. Few may argue that by investing Rs.66,000 (amount saved in property registration cost) may be invested somewhere to compensate the future tax loss. However, while selling a property, have you been in the same condition to sell the asset or financial instrument where you invested that saved Rs.66,000? It may or may not be and also it may or may not fetch the return which compensate the future difference of taxation.

Hence, never believe the sellers or builders logic of registering the property for less than actual cost price. Real Estate industry is mainly run by illegal money (to a certain extent it is now reduced). Hence, they force you to register at less rate and give the rest of money in cash. To be frank by doing this, the sellers or builders of properties will be in profit as they have to pay less capital gains tax.

The moral of the story is, go for full saleable value for registration, but never for lesser or on the guidance value of property. In the future, you have to bear more capital gains tax on it.

Note

  • Stamp papers must be purchased in the name of buyer or seller ONLY. No third person is allowed to buy the stamp papers on behalf of buyer or seller.
  • Nowadays eStamp papers are available in states like Gujarat, Karnataka, NCT Delhi, Assam, Tamil Nadu, Rajasthan, Himachal Pradesh, Uttarakhand, UT of Dadra & Nagar Haveli, UT of Daman & Diu, Puducherry, Uttar Pradesh, Chhattisgarh, Jharkhand, Jammu & Kashmir, Punjab and Chandigarh.
  •  e-Stamping is nothing but a stamp paper generated through a computer based application and a secured way of paying Non-Judicial stamp duty to the Government.
  • Few advantages of e-Stampings are-Certificate can be generated within minutes, Certificate generated is tamper proof, authenticity of the certificate can be checked through the inquiry module, it as has a Unique Identification Number (UIN) and specific denomination is not required.

366 Comments

  1. Hi
    Some of the banks offer home loan using split DD as they honor agreement and not stamp paper, one for Govt registration, and other to vendor to avoid stamp duty and tds for over 50L. Is it fine? Or is it illegal?

    Reply
    • Dear Suraj,
      The cost mentioned in sale deed matters than how the bankers paid you.

      Reply
  2. Dear Sir,
    Sold my 10 year old house purchased for 40 lakhs for 120 lakhs & settled it’s loan of 30 lakhs. Now I am buying my brothers 10 year old flat at a discount due to massive renovation work involved for 90 lakhs [already paid through NEFT] but guidance value is 110 lakhs. Further I am forced to borrow 7 lakhs registration charges also from my brother. What is the consideration amount to be shows in sale deed to avoid any future headache’s
    Rgds/Anil

    Reply
  3. Sir I want to purchase a independent house which is built on corner plot. So do I have to pay 10% extra on registration charges for plot and house as it is corner.

    Reply
  4. Sir,
    I WANTED TO BUY A PROPERTY IN BANGALORE. PROPERTY GUIDANCE VALUE IS MENTIONED IN PER SQUARE METER Rs.33500/-AS PER GOV GAZETTE IN THAT AREA.IN SALE DEED IT IS MENTIONED 1100- SQUARE FEET SUPER BUILDUP AREA. THEN WHAT IS MY REG AMOUNT.HOW TO CALCULATE?
    KINDLY REPLY
    WITH REGARDS
    K.RAMESH

    Reply
    • Dear Ramesh,
      I can’t help and calculate for each individual. Better you directly approach the concerned sub-registrar office.

      Reply
  5. Hi,
    I am planning to purchase a land in Malur District Karnataka. My plot is an corner one and builder told I have to pay 10% extra on guideline value(govt rate fixed for that area) on which sale deed will get done. I have done the sale agreement and now builder is telling along with that I have to pay 10% extra on Market Price(amount on which builder is selling) as well and this will also got to govt while registration. So now I am confused. Is there any such cases.
    Below I have given an example :
    I am purchasing a plot for 17 lakh from builder.
    Govt value of that plot is 10 lakh.
    Now builder told as it is corner plot so 10% will get add on govt value and it will become 11 lakh and on this 11 lakh registration amount will get calculate which is coming around 1.13 lakh including khata transfer.
    Along with that now builder is telling to pay extra 10% on 17 lakh as well i.e 1.70 lakh which will again go to govt.
    Please help me with this.

    Thank You.

    Reply
    • Dear Hari,
      It is a private negotiations. Hence, there are no such rules. It is up to you to decide.

      Reply
  6. Hi I need my some information my dad s property need to be transferred asper successcer certificate what are government charges

    Reply
  7. Hi sir,

    What is the 30×40 site agreement registration cost in banglore?

    Reply
    • Dear Rupesh,
      Follow the above post or visit the nearest sub-registrar office.

      Reply
  8. If i register the property in my wife name is there any personal tax will be charged ?

    Reply
    • Dear Vaman,
      What will be the source of money to purchase the property?

      Reply
  9. Thanks. Flat is not yet registered. Sir, Total cost is 58 lakes as per Sale Agreement..this includes 47 lakes basic cost+car parking…5 lakhs GST, rest 6 lakhs for amenities,club,electricity etc.
    Now what cost should be considered for stamp duty & registration? 47 L or 58 L?…. also builder is telling guidance value is legally right…..is it true?

    Reply
    • Dear Jha,
      For stamp and registration, the cost of sale deed will be considered. Never go with guidance value, instead, stick to actual value.

      Reply
  10. Sir, it means there is no problem other than the tax burden on Capital Gain when the buyer sells the flat if he is pays stamp duty on guidance value which is less than the actual purchase value of FLAT in Bangalore? But, is it legally right? Pls clarify on legal aspect as builder insists on registration on lesser value.

    Reply
    • Dear Jha,
      If you registered the property for less than the actual sale value, then it is YOU who has to pay more capital gain tax when you sell the same property in future. Hence, avoid such activity.

      Reply
  11. Hi Sir,

    Thanks for such a great blog.

    I have a small query :

    Actually, the flat cost is 50L…but the builder is telling me to do registration in 35L ( which is govt value)

    If I will go for 50L: 2.5L is coming as registration
    If I will go for 35L: 3.3L is coming for registration

    So which one I should go, sir ??

    Also as per your article, it is good to save money now ( as per your calculation after deducting tax and all at the end we will get more benefits only right ??)

    Awaiting for your response,

    Thanks

    Reply
    • Dear Nrusingh,
      As per me it is always best to go for actual price rather than the Govt value.

      Reply
  12. Hi dear,
    I had a little enquiry about pmay as I am single salraied person. Is am eligible for availing benifits of pmay. As my parents own a pucca house. And hearead that it is compulsory to have a female name in registry. So I’m single and my parents already own pucca house can I avail benifits. I hope I m able to make you understand my querry if anything else I need to share for advise pls tell I will share it. My income is below 6

    Reply
  13. dear sir
    we have bought the land in 2001,for the cost 1.5 lakhs haven’t registered,we have the gpo ,now we are planing to register,can i know the process ,procedure…

    Reply
    • Dear Vinod,
      I am not sure what prompted you to take such serious lapses. Hence, better to approach the lawyer and discuss the same.

      Reply
  14. Dear Sir,

    I am planning to buy 12 cent land in manglore near airport. The property value is 19.2 Lakhs. I would like to register the property with the sale value but my lawyer is suggesting for guidance value. I want to make the registration as per the original value. What should I do. Kindly reply

    Reply
    • Dear Prashanth,
      Why your lawyer going to benefitting the SELLER rather than YOU?

      Reply
  15. hi basava,
    I have a doubt, I brought flat on 2015 on KR Puram Bangalore, while registration time builder charged me 2Lakh as parking charge. association take over and doing maintenance. builder not registered the car parking space separately. he charged 2lak to all the owners.
    Now association want to give common space for rent. around 2 bikes can park in common space next to my car parking.
    on what basics common area marked up? how can the association rent the common space which is equal rights for all owners? I have checked with builder he says” association need to do this with my NOC letter because I have sold to all the owners on common basics to use not for rent!.”
    is it legal in Bangalore??

    Reply
    • Dear Karthik,
      I am not an expert in this legal matter. Better to approach a lawyer.

      Reply
  16. Hello sir,
    i’m purchasing 3BHK flat in mangalore with 3200/Sqft, total area is 1555, as it is of builder from my relative final amount in Sale Agreement is 48,00,000/- inclusive of Tax( as it is Ready to move and got occupancy certificate 2 years back(Its still Builders Property), and we are going to register for same value,keep it all white.
    for buying i opted for home Loan, as could only manage 20% cost, rest (i.e 38,40,000/-)i need badly from home loan, now loan procedure is started after all legal verification is over, now loan sanction people are put up query to mention about Split up cost,i.e exluding GST/TAX,MESCOM Deposit,
    my query here is,
    1.Do the bank disburse Quantum loan amount over including all these(Tax,Mescom Deposit,Car Parking) from the sale dead or only over the Building Cost.?
    2.Even i wanted go with PMAY, But bank is telling under PMAY max Loan will be 35Lakhs, my bank is Canara Bank.

    Reply
  17. i have purchased a flat in 2006 for 35 lac and I am selling it for 1.06 cr. I have an NRI status since 2007. The buyer isinsisting on putting 70 lac as registration amount (sale deed) and the rest as amenities agreement. Iwas told that it is very common to do this way.
    My plan is to pay LTCG for the entire sale amount, but the registration amount is 70 lac. WHat are the problems for me and for the buyer if I agree to go ahead as 70/36 as per buyer demands?

    Your reply is highly appreciated.

    Reply
    • Dear Elizabeth,
      Why buyer insisting for lower registration amount?

      Reply
  18. I have constructed house in bangalore. I did my gruha pravesh in August 2017.
    The house is G + 2 floors and approximate area of construction is 3000sq.ft.

    Now how to go about for registration?

    Reply
    • Siddhartha-If you already construction house then why now registration?

      Reply
  19. I am planning to purchase flat of 39 lac (total cost) in Bangalore can i know the exact amount of registration charges including (stamp duty, registration and etc if any) to arrange the money.

    Reply
  20. Hi Basu,
    I am purchasing a re-sale flat for which I am the borrower and my wife is the co-borrower . I am planning to do registration in next week. I have few question . Could you please clarify below points
    1. Is stamp duty and Registration are part of 80C ? Can me and my wife claim this amount while filing ITR for FY 2017-18?
    2. Is there any maximum cap of registration charges. I read that max reg charges could not be more than 30,000
    3. On the day of registration is there any charges other than Stamp Duty(5.6%), Registration Charges(1%) ?

    Regards,
    Suman

    Reply
    • Suman-1) Yes you can claim.
      2) There is no such limit. However, the Sec.80C limit is Rs.1.5 lakh a year.
      3) No such charges applicable officially.

      Reply
  21. Hi Basvaraj,
    I am purchasing a resale apartment cost of which is 56lacs. . I have taken a loan of 44lacs . I have no plan of resale in future . My question is
    1. Can I mention property cost equals market cost (say35 lacs) which would be lesser than loan taken by bank in both sale agreement and sake deed to save stamp duty and registration charges.
    2. Can I go for sale deed without sale agreement?
    3. stamp duty and registration charges is paid on Market price of property or actual price of property ?
    4. Does Stamp duty and Registration charges excludes car parking and BWSBB charges ?

    Reply
    • Saurav-1) Then how can your bank will sanction Rs.44 lakh? You are in a mood to save few % of the registration cost. But in future you will be in trouble. Don’t support such acts.
      2) If you rely on the seller, then you can.
      3) Refer above post.
      4) It is on sale deed value.

      Reply
  22. Hi Basavaraj,

    I am under an assignment agreement with Builder, Seller and Myself for an apartment in Bangalore. Total cost mentioned in Assignment Agreement lets say is 1 Cr. It also mentions breakup of Construction(25L) and Sale agreement(~30 Lakh) happened in 2012 with original buyer.This property was never registered to the govt.

    Now when I am planning to register, Builder is saying that registration should be done on Sale agreement only which is ~50Lakh as per current guidance value but I am paying all in white money

    Now when i will sell that in future lets say for 1.2 cr and new buyer will register at 1.2 cr only, I will be gaining only 20 Lakh but does i need to show capital gain on 50 Lakh? How can i will prove this that I have paid 1 cr for the same?

    Reply
    • Ankit-I already mentioned in above post that why registering with lesser than your actual sale value will harm you in long run when you sell it.

      Reply
      • But At that point when i will plan to sell, I cannot mention that my assignment agreement says that I have paid 1 cr to the seller and I am gaining only 20 Lac. Will that agreement which is done on the Stamp paper will not help? I will not be paying capital gain on 50 Lac and will pay capital gain only on 20 Lac.

        Is my understanding correct?

        Reply
        • Ankit-Assignment agreement may not come into the picture. But sale value will be based on sale deed price but not on your assignment agreement.

          Reply
          • Sale Deed will be 50 lac only which is equivalent to the value registration will happen.

            Does construction agreement also need to registered in Karnataka?

            Reply
            • Ankit-Then the capital gain will be based on sale deed value. For registration construction agreement is not required (as per me).

              Reply
  23. Hi Basavaraj,
    I have a flat in Hyderabad and my parents are living in that flat.Home loan is completely paid.
    I am working in Bangalore and have HRA eligibility of Rs 27,000.I am staying in a 1o years old flat for rent of Rs 13,000. If I a buy a Flat with home loan, can I get Incometax benefit?

    Reply
    • Kiran-This new property is considered as second property for you and tax benefits or taxation will be as per that.

      Reply
      • Basavaraj,
        Do I need to show/declare income from my first flat which is in Hyderabad and my parents are living in that?
        Thanks,
        Kiran

        Reply
        • Kiran-Irrespective of your income, the second property (which one you consider depends on you) will be considered as let out property. Refer the details HERE.

          Reply
  24. Hi,
    I am buying a property in Ananth Nagar Phase-1, Bangalore.The cost of 1175 super built-up are flat(fourth floor) he said 38.5 lakhs excluding registration.He said it is BMRDA Approved and A Khata.I have asked whether they have a RERA number and whether they can give OC.He is saying as they built Party hall above the fourth floor, which is not as per BMRDA rules he cannot give OC and except that they followed all rules as per BMRDA.Is it OK to buy?

    Thanks,
    Kiran

    Reply
    • Kiran-As per me, better to avoid such illegal constructions.

      Reply
      • Thank you

        Reply
  25. Hi Basavaraj,

    I booked an apartment nr Electronic City, and waiting for signing the sale agreement from past 3 months, as the builder is waiting for new Sale Agreement as per RERA , since I insisted for RERA based sale agreement. Last week they shared the draft version and they mentioned maintenance charge Rs 3.4/sqft, but in near by areas it is below 3, and they are saying they can’t change anything since it is the management decision. And they added GST on top of that, there is no GST if the maintenance charge per month is below Rs 5000, but they are not agreeing.

    Also there is a club house which builder will be maintaining for life time, but we paid for construction and they will decide the monthly subscription charge, and this charge they have not revealed yet. This charges is not mentioned in sale agreement draft version, when I asked them they have not calculated yet.

    For any change in agreement they are saying they can’t do it since it is management decision and it is common for all.
    Shall I proceed with this , please suggest

    Reply
    • Suresh-Up to you to decide with such type of so called MANAGEMENT.

      Reply
      • Hi Basavaraj,

        For Sale agreement registration , below is the breakup they are charging

        1. Sub – Registrar DD in favour of THE SUB REGISTRAR JAYANAGAR, BANGALORE for Rs. 4723/-

        2. Advocate, Scanning Fees & Other Charges Rs. 10277/- in favour of builder by Cheque.

        Total amount is Rs. 15,000/-

        Is this correct

        Thanks in advance

        Reply
  26. I am planning to buy a flat in btm layout 6th stage.Is it required for me to do a sale agreement

    Reply
    • Prishni-If it is ready to occupy, then why not go ahead for sale deed directly?

      Reply
  27. Hi Basavaraj,
    I am planning to take ready to move flat. Which will be better way to do registration Under construction OR as completeled.

    I far as I know ready to move property don’t have GST. Does registration charges will increase if I do as completeled property.

    Reply
    • Shobana-There is no change in registration charges. Hence, you will not feel the difference.

      Reply
  28. Hi, I have planned to buy a flat in JP nagar 8th phase. And the project is under JD and the total area of the project is 4200 sqft. And project is completed around 85%.I am in talk with the developer regarding the documentation and they have given me set of document file which I have shown to a lawyer and he has suggest the list of documents which he requires for final approval . Under his suggested points he has mentioned is RTC, EC, OC from BBMP etc. And the same I asked to get from the developer but he said there is no OC and CC can be given for this project because the area of the project is total 4200 sqft. And for this particular area OC and CC is not appliacable if the area is more than 8000 sqft in that case only OC and CC can be given.

    And he said RERA is also not applicable for this project.

    So can you suggest is it true.

    Reply
    • Alok-He is the biggest lier. Just dump and search for other projects.

      Reply
      • Actually they are saying the You will get loan from SBI,LIC because our project has loan approval from from SBI and LIC.

        Reply
        • Alok-Lenders lined up to give you loan does not mean that it is LEGAL. This is the biggest misconception among many.

          Reply
  29. One builder in Basavanagar gave the following quote:
    For 2BHK
    Salable Area 1110 sqft
    Rate 5,000.00
    Basic Cost 5,550,000.00
    Car Parking 300,000.00
    Amenities ,Club house,Genarator 200,000.00
    BESCOM & BWSSB @ Rs. 200/- per Sqft 222,000.00
    GST 12% 752,640.00
    Total Value 7,024,640.00

    GST has been calculated on total cost (inclusive of car parking,amenities, BESCOM and BWSSB, etc).
    Is GST calculated on total cost?
    Earlier VAT and Service charge was calculated on basic cost only.
    Shouldn’t GST be calculated in the same manner?

    Reply
    • Sunil-There is no clarity on this front. However, as per me it is on sale deed value.

      Reply
      • Thanks Basavaraj for quick response.
        Can you please tell me what are charges I need to pay like OC, khata transfer, legal charges?
        I don’t to get surprises later on.

        Reply
        • Sunil-OC, Khata and legal charges are ILLEGAL or not defined charges. If you are paying any charges (if they demand so), then ask for a receipt of the same, they shut their mouth.

          Reply
  30. I have one room in society.which is around 465sq.ft in scale. How much registration fees i have to pay for it. With all charges.
    Place is Maharashtra,navi Mumbai,airoli.

    Reply
    • Dhiran-I am not sure about Maharashtra state charges. Hence, better you visit the concerned registrar office and get the information.

      Reply
  31. Considering Demonitization, is it best time to buy INDEPENDENT house in Hyderabad or banglore or chennai??
    If so, Please let me know the list of checklist documents to be verified whether for both Public properties like under GHMC or HMDA for hyderabad or private unregularilized properties to avoid buying property which does NOT have proper documents

    Reply
      • can i know the reason..Could you please explain..Sinc ei work in Private sector i may get transfer and may do job here and there..So if i take a independent house (Which has good re-sale value since independent house comes with land..unlike flat) and stay and there by avoiding to pay room rent after marrried..IF i get transferred or find job somewhere i would rent the one which i bought, there by earning monthly money and will stay in rent house in new city there by no need to pay anything from my pocket (since the earlier house i give it for rent and i earn monthly money and pay the same money as rent where i stay for rent).

        Please advise

        Reply
        • Srikanth-If it is for your own usage, then you can go ahead. However, if you consider this as an investment, then I prefer to stay away from such illiquid and unrecognized sector.

          Reply
          • ok thankyou basavraj..Could you please mention before purchasing any individual house ..what list of documents would need to considered to purchase a genuiue house and to avoid fraudlent property..Please mention me the checklistof documents to verify

            Reply
            • Srikanth-I am not expert in that area. Hence, before finalizing the property, better to consult a lawyer.

              Reply
      • Hello Sir,
        I am planning to purchase an independent house builtin 40 x 30 plot. It is 3 storey house with around 1500 sq feet and 28 years old. It is near Vijaya Nagar in Banglore. What will be the approximate cost

        Reply
        • Kumar-Hard to say. You have to arrive at the price by doing on your own research in surrounding areas.

          Reply
  32. Hi Basavaraj,

    I appreciate and respect your responses to all individuals queries.
    We are planning to buy a Villa property, the land owner and builder are different, though we are approached by builder. But will we have two separate registry of the same or only one registry will work for both. As per builder, the land will belong to us only.

    Reply
    • Preeti-In that case I think only one property registry is enough. However, I still suggest you to consult a lawyer as I have a limited knowledge in this regard.

      Reply
  33. Hello Mr Basava Raj,

    Good Day..!!!

    Hope you are doing well, i am planning to buy one plot 30×40 size, BBMP – A khatha, at KRPuram, Just wanted to know at present what is Registration charges going on, checked in internet, am bit confused,

    Can you please tell me the calculation of the registration, ie., stamp duty, Reg.charges. etc.,

    Thanks in Advance,

    Harsha Vardhan,

    Reply
  34. Hi,
    I have bought flat measuring 1330 sqft in Banashankari, and now my flat is 95% complete. Me and builder have planned to go for registration. Franking of sale agreement was done during may month. Now what are the charges I have to pay for registering it. I have made 50 lac sale agreement and 8 lac construction agreement. please explain what are the charges involved.

    Reply
    • Sanjay-Refer above post and if you still feel doubtful then visit the registrar office and get the exact cost.

      Reply
  35. Hi,
    I booked a flat in Bangalore Hosa road on 21st Oct2017, and paid 22 % of total cost, it’s a under construction apartment. The draft copy of sale agreement as per RERA is not available in Karnataka yet, so they are asking to sign with old agreement format.
    They are saying the date will be mentioned as 31st March 2017 as that is the end of financial year. The booking date also they changed to 11th July2017. The builder is saying that’s not a problem since we have not got RERA agreement copy we will do in old format with an old date.
    Please suggest as they are forcing to sign the sale agreement ASAP
    Also they are asking Rs5000 for stamp duty

    Shall I wait for new sale agreement format as per RERA, asking the builder to hold on. Since the apartment is 90% complete they are forcing me.
    Please suggest

    Reply
    • Suresh-There is nothing called a sale agreement as per RERA. The typical old sale agreement type continues. By saying fault information, he is forcing you to go for agreement so that he be out of the purview of RERA. In my view, he is the biggest cheater. Don’t bend as per them. Do the documentation as per the date actually done. Why are you paying Rs.5,000 to them? Simple, visit the concerned registrar office, ask the cost and accordingly buy on your own. They are into day robbery.

      Reply
      • Thanks Basavaraj,
        They are saying Agreement date they will be mentioned as 31st March2017, but the stamping date will be thecurrent date.
        Franking charge -2200
        Instead of E-stamping they will do direct stamping, because they need signature and all

        More over I asked to give me a letter on company letter head mentioning why you have given the old date and also mention the correct booking date and date of procession

        Is this fine

        Reply
        • Suresh-Assume they also give you in their letterhead and afterwards you come to know that they cheated. Will have the ability to fight against them? Never trust these builders. You see one face before buying and another face immediately sales completed.

          Reply
  36. I am planning to buy a flat in Bangalore which is under construction and possession in Oct 2019. Area is 1320 sq ft and cost is Rs. 3500/ sq ft = 46,20,000/-. How much GST I have to pay for this, and how much registration+stamp duty cost will be?

    Reply
    • Snehalata-You are just now have to go for sale agreement. Sale deed must be once it is ready for possession.

      Reply
      • We are actually trying to find out how much in total we have to give for the flat. pretty much confused about how to calculate the GST, stamp duty and registration charges. Can you please help getting this info.

        Reply
        • Snehlata-Stamp duty and registration charges are same. Only change is for GST and it is currently 18%.

          Reply
          • 18% of 2/3rd of total property cost?

            Reply
  37. hii..Can I do registration for underconstruction property

    Reply
    • Rashmi-But why? What if the builder stop the construction after your registration? Who is at risk? It is BUYER. Never ever allow such acts by BLIND BELIEF ON BUILDER.

      Reply
      • hii..I m asking if it is allowed legally??

        Reply
  38. Hi i need some good guidance has many tells what’s running on there mind rather the truth….
    I m planning to buy a independent house….
    I told i will pay 70lakhs….. The owner agreed to sell at the same price….
    He asked me to show in paper only 50lakhs rest all in hand…..
    Is it profitable for me in future or not…..
    Is it good to make registration for 50lakh n save money…..

    Reply
  39. Hi,
    I purchased by paying 1lakh as advance in Feb 2016.
    Now in 2017 October my flat is ready.
    Is it that I need to pay GST or service tax and Vat?

    Or will it be like for things which happened before GST introduction I have to pay Service tax and Vat and post that GST.

    Can you please help.

    My flat registration has still not happened.

    Reply
  40. Hi,
    I purchased a plot from person A. and the same was registered in my name.
    However, phani was not transferred to my name.

    Now after 13 years of registration, I have planned to sell the plot where I have built a house.

    Will I have any problem in selling the house..

    Reply
    • Vinod-The documents and khata should be in your name. Contact local office and do the changes immediately.

      Reply
  41. Hi i bought a 40×30 site in varthur, sarjapur road bangalore.. Could you please let me know whats aunnual property tax i need to pay in 2017.its in green belt.

    Reply
  42. Dear Basavraj,

    I’m planning to buy a flat which is 10 year old through home loan ,

    My query is the stamp paper registration can be done less than actual home loan amount

    What are the precaution measures to be taken while purchasing second hand flat ?

    Any legal issue arise post purchase ?

    Reply
    • Kumar-“My query is the stamp paper registration can be done less than actual home loan amount”-Elaborate more. Regarding precautions, better you check with lawyer.

      Reply
  43. Hi Basavraj,

    Many thanks that your replies help us to our property related concerns!

    Recently I purchased a flat nr. Whitefield & decide to do registration very soon. Builder calculated the stamp duty cost & registration cost @5.6% & 1.00% respectively on Property Value declared (property cost as per current govt. guidance value plus car parking) as 35.5L, though the Purchase Value including car parking is 34.5L (as entered in my sale agreement). Below are my three doubts regarding their calculation part, or are they correct in this? Please help me with your clarifications.

    1. Should not they calculate the stamp duty & registration costs on the Property Purchase value of said rs. 34.5L (as it is sold & entered in sale agreement absolutely) ?
    2. Is it a mandate to include car parking cost at the calculation of stamp duty either/or registration costs ?
    3. Apart from these two costs, is there any other charges that I need to bear at the registration time?

    Awaiting your kind responses.

    Rgds,

    Arpit

    Reply
    • Arpit-1) The value for consideration is either sale deed value or the guidance value (whichever is higher).
      2) Charging car parking itself illegal, which many don’t know and these builders using for their own benefit. It is left with you and builder to discuss this.
      3) GST.

      Reply
      • Thanks sir for your quick reply!

        1 & 2. My total sale consideration value is 34.5L (including all excluding registration & stamp duty costs), and the total guidance value is of 33.9L (as per the calculation of Guidance value Order issued to that specific project). But builder calculate my stamp duty & registration costs payable on 33.9L (total guidance value of my flat) + 1.5L (for covered car parking). Are they right is this part? Or should they exclude the car parking cost from stamp duty & registration charges calculation?? Is it compulsory to include the car parking cost with total guidance value to bear/pay the stamp duty & registration charges while I am going to register both said property along with covered car parking to accomplish the registration process???

        3. I already paid service tax & VAT (as booked prior to GST regime) for said property, and including all it works out to be total sale consideration value as 34.5L. Have I to pay again GST in the registration formalities? Or is it the additional GST to be borne towards stamp duty & registration costs to complete the registration process??

        Kindly clarify.

        Rgds,

        Arpita

        Reply
        • Arpita-Legally speaking your builder should not SELL the carp parking. It should be considered as common area. It is against the Supreme Court Judgement to sell the car parking lot and include it in sale deed. Hence, it is not right to include car parking cost with total guidance value. Guidance value should be except car parking cost.
          If the registration is not yet done, then you have to pay GST than service tax.

          Reply
          • Many thanks for kind infomation!

            Is that GST payable towards stamp duty & registration costs or to my sale consideration part?Because I already paid service tax & VAT (as a component of my sale deed value paid to builder).
            If so, then builder must pay GST (as ST & VAT paid by me to him) in my registration formalities.

            Please suggest.

            Rgds,
            Arpit

            Reply
              • Really appreciated! Thankful to you sir.

                Reply
  44. I have purchased the flat in Electronic city area registrations are making or not under sub registration office please confirm….

    Reply
      • I think registration are stopped from last week if you know kindly confirm.

        Reply
        • Dileep-May I know what reason they quoted or whether you got the confirmation from the officials directly?

          Reply
  45. Hi Basavaraj,

    I have purchased a flat in an apartment in Bangalore. Builder has collected 2 years maintenance amount in advance. Builder maintenance ended by September 2017. He has not completed the -2 stilt parking and saying that he do not have money and cannot do anything. And the flat owners association has not yet formed. Is there any way to take legal action against him. Please advice.

    Reply
    • Bharath-You can proceed for legal case with combined owners file.

      Reply
  46. Dear Sir,

    How about the OC ? Is it a must for purchasing apartment? Can we go for an apartment without OC by making a supplementary agreement with owner that he will provide OC without fail at the earliest by keeping him Rs. 5 lakh pending?

    Thanks

    Reply
      • Thank you sir. Is cost of 57 lakhs without registration and stamp charges is more for 3 BHK apartment (1405 Sq. Feet.) in Varthur area (Balagere road)?

        Reply
        • Rajani-The charges are based on sale value. It can’t be higher for any particular area of the city.

          Reply
          • Thanks for reply sir.

            My question was is the cost 60.5 Lakhs for 3BHK apartment is more in that area or ok?

            Reply
            • Rajni-How can I say that? It purely depends on YOU and SELLER. If you feel so, then do the research in nearby areas to identify the ongoing prices in that area.

              Reply
              • Ok Thank You.

                In one of your previous comment’s reply to NSGV you mentioned about Nagarbhavi area where 60 lakhs for apartment is much higher. So asked about this.

                Reply
                • Rajani-Oh k…But I was residing in that at that time. So was aware of the price. Hence, might be commented.

                  Reply
                    • Hi Rajani,

                      If you would not mind, can you please share the project name & details, so that I can help you out because I am staying in Varthur area.

                    • Dear Sir,

                      I am looking in CMRS group Royal Orchid… 3 BHK apartment. Its in Varthur Balagere 60 feet road…

                      Thank you

                    • Rajani-Sadly I don’t know any of these real estate projects or companies.

  47. Dear Sir,

    Thanks for your concern in sharing the knowledge you have which is very much required for general public.

    I have few queries, some were solved by reading the previous comments like stamp duty and registration charges.

    1. We have liked an apartment in Varthur area and it is built 1405 Sq. Feet. It is in initial stages of talk. We are planning to buy from land owner and not the developer. But that apartment is not listed in Guidance Value of Bangalore 2016 list in which you have listed. Other builders are there. How to know about such apartments? Is it same as area around or specific to apartment?

    2. Apartment is not having OC till date. Land owner is telling am sure of getting it in 2 month and I can give you in writing (on stamp paper) that you can get it in a 2 months time otherwise I will return the entire amount without any delay. I am in need of some urgent money and it will be loss if we keep on pending it till OC. He is telling to go for sale deed till then paying 20% of agreed amount (it will be 12,00,000/-). Remaining amount to be given before possession (along with this sale deed, he is ready to write about the OC clause which I mentioned earlier that he will return money). But is it worth trusting such people as they are in this business and worth the risk?

    He is hurrying about it for gong for sale deed. He is telling it will be loss for him to keep the property sale open till he gets OC as he can invest that money in other firm or something like that.

    3. We asked about the company (I mean the developer details) like their incorporation deed, partners and company registration number, IT returns and PAN but both developer and land owner are not ready to disclose it. Just to know if they can be trusted. I personally feel that there is nothing wrong in disclosing it. (Also, I am not able to find company registration details in Ministry of Corporate affairs and didn’t find any such company which they claim) [On this again the land owner is telling that from me you are purchasing the property why you are worried about developers. But wont you think that it is equal responsibility of both developer and owner to deliver the home. (May be you can enlighten us on this in another post what one can look from developer and similar things)]

    Thank You
    Yours Sincerely,
    Raghu

    Reply
    • Raghu-1) It must be that area also. Check why it is not listed.
      2) Never rely such claims.
      3) Never rely on anyone and especially the claims of builders or developers.

      Reply
      • Dear Sir,

        Thank you very much for the quick reply.

        Even SBI is ready to give home loan for that property that they are claiming as one of the achievements. anyways banks need business though.

        One more query, any idea or any links on how much will be market value over the guidance value, like 50% or 20% above of guidance value will be considered as good deal? Anything like that? Is there any general calculation is there that buyers can follow to strike a deal?

        Thank you
        Yours Sincerely,
        raghu

        Reply
        • Raghu-Banks are BLINDFOLDED. Because they do not bother about such issues. It is YOU, who has to bother. There is no such standard rule of how much more than guidance value is a good deal. It depends on your search and builder’s lust.

          Reply
  48. HI ,

    we have purchased a property in RR Nagar Bangalore (1310 sqft). total price is 45 lakhs, we have paid 10 lakhs after the sale agreement. we want to register the property in a week but the builder told we need to pay 8 lakhs for registration.
    What are the gst effects on registration?
    if we go according to guidance value what will be the registration charges?
    according to you based on the area or based on property value what should be the registration charges.

    Reply
    • Sushma-No need to rely on anyone. Directly visit the registrar office. Check the guidance value of that area and also inform them the sale value. Based on that they will inform you the registration cost. Rs.8 lakh is nothing but a DAY ROBBERY.

      Reply
      • Thanks Basavaraj, your comments really helped me.

        Reply
  49. Hi Basu,

    I am planning to purchase a residential plot. Below is breakup given by developer:

    Property value at which to be registered – 30 L
    Stamp duty (5.15%) – 1.54 L
    Cess (0.5%) – 15k
    Registration fee (1%) – 30k
    Service Tax – 19,200

    My question is on Service Tax. Is it still applicable post GST era?

    Thanks in advance!!

    Reply
    • Yesvant-Service tax not applicable now after GST regime. Please discuss the same with builder for the same.

      Reply
      • Thanks Basu… I am able to get the service tax removed from my cost break up. Thanks again for quick reply.

        Reply
  50. I have purchased a flat and the builder is suggesting that the registration is done on guidance value plus car park. Additionally he is suggesting a 0.5% as floor rise for each floor over 6th floor. Please let me know if there is any change in the regulations recently and if what he signed saying is correct. I have decided to do the registration on the full value. Will the floor rise be applicable over and above the same or will it be included in the absolute sale agreement value.

    Reply
    • Meenal-It is hard to say whether such clause is inserted in the sale agreement. Better you consult a lawyer.

      Reply
      • Is there such an amendment in the registration laws?

        Reply
  51. Hi Basavaraj,

    Very good article. I have bought a flat in bangalore and possession is after 3 months. Builder is telling to go for registration before October 1st as he is saying guidance value will be increased. Is it true? How can i confirm this?

    The problem is i have disbursed 80% amount of loan to builder and if i will do registration now i have to disburse remaining 20% immediately then only bank will allow me to do registration. Please help.

    Reply
  52. Hi – me and my brother have jointly purchased a flat in Bangalore. Both of us are co-loanees for the loan we took from the bank. However, as my brother is in govt services, he might not be able to come at the time of registration.

    1. Can i sign on his behalf. Is there any authorization required from his end. I heard that the property gets registered only in the name of the person physically present.
    2. If he is not able to come at the time of registration and the property does not get registered in his name, can he still avail tax benefits due to home loan benefits?

    Please do let me know.

    Thanks
    Aman

    Reply
    • Aman-1) He has to be present at the time of registration.
      2) He can’t as there is no ownership.

      Reply
      • Thanks!
        And after possession within how many days do we have to register the flat?

        Reply
        • Aman-How can your builder allow you to take the possession without registering the flat?

          Reply
          • thank you for your reply

            Do you mean that the builder will not give the possession of the flat until unless registration is done?

            Reply
  53. Hi Sir

    Now I am buying property for 33 lac but owner wants it sale deed of 26 lacs balance cash but I am applying home loan of 33 lac..pls suggest..for documentation and sanctioning of home loan..

    Reply
      • OK thank you

        Reply
  54. Hi Basavaraj ,

    I have purchased a flat in bangalore , Actually i finalized flat for price of 50 L(for agreement value) + OC charges(1L) extra as cash during the month of April and made 20 % down payment including booking amount, builder urged me to get loan approval and disburse 90% of total amount before GST implementation, but bank delayed and i got approval last month and bank disbursed major amount and now almost 45L has been paid to builder. Now builder claiming 1.2 L extra in terms of GST, when asked for explanation he is mentioning for 20 % down payment old service tax at rate of 9 % calculated and for the remaining amount which paid later july 1st GST at rate of 12 % is applicable, so i have to pay difference amount of 1.2 L, Also he mentioned since sale agreement is submitted to bank and loan sanctioned for old value of 50 L, the remaining 1.2 L cant be shown in agreement now. Also builder is asking me to go for registration with guidance value next month.

    so please advice me how to bring the remaining GST amount of 1.2 L to document as a proof that is collected for GST and is there a way to mentioned the remaining 1.2L GST value during registration and go for registration for full value of 50L + 1.2L

    Reply
    • Selvam-It is up to you to decide. Because neither banks takes that responsibility nor your builder.

      Reply
      • Hi

        Thanks for quick reply , in this case if i get receipt from builder and can i show as prof and go for total value 50L + 1.2 L registration is it possible

        Reply
        • Selvam-Rs.1.2 is always your tax part not the sale agreement part.

          Reply
  55. Dear Sir

    Kindly advice how to register the property . which was purchased in bank auction

    I have bid for bank auction property and won the property and paid amount
    the bank is giving the sale certificate.
    kindly advice how to proceed further for making sale deed to transfer ownership in my name.

    Reply
      • Hai Thanks fro your replay

        I have one more query on above property. please advice .

        As I said . The property was taken in bank auction

        The history of property is

        The Property was purchased by person A in 2010 From Person B through home loan and mortgagee to bank on 2010

        The Person A Defaults the Bank EMI from 2011

        The Person A put the sale agreement (sale deed not done) with person C for 11L in 2011 with condition the sale deed has to complete in 9 month and after that no transaction happened

        The bank Given proper notice to person A and put the property on auction in aug 2017

        Self has bided and won the AUCTION .

        When I Check the EC Of the property the person C name is reflecting

        When I checked with the bank . they said the sale agreement is null and void when the property is in bank mortgagee. and the bank having the original sale deed and linking sale deed from mother deed

        Kindly advice me. in future any legal issue will arise . it is possible to remove the person C details from EC as it create the litigation. The thing is both the persons A and C is not traceable.

        Thanks and Regards

        Reply
        • Sudharshan-It is risky and I think the property owner cheated both Bank and the person C. Because of the original sale deed with Bank, then how come he have rights to do any action on that property with C? Better to stay away from such issues. Because at the end banker may not come and help you also the person C may sue you.

          Reply
          • Hai thanks for your replay

            The property owner person A did only sale agreement with person C in DEC 2011 with condition the sale deed to be made in 9 months (more than 5 years) after that no transition done .. He did not made any sale deed with person C .

            Kindly advice still its risky. As this auctioned property . if I didn’t pay the balance the EMD Amount which I payed will be forfeited.

            Reply
            • Sudharsan-I know that just agreement was done but not deed. However, it seems his intentions are not genuine. The party C may sue in that case and you may be in unnecessary trouble (MAY BE). But I suggest you to consult a lawyer before jumping into.

              Reply
              • thanks for your reeplay

                Reply
  56. Hi Basavaraj.. this was a great explanation for someone who’s new to buying house..
    I have a clarification.. If the difference is Sale Deed and Actual value is paid in Cheque or DD and not cash then how can the seller show source of income.. My seller is ready to pay tax but he is in a dilemma on how to show the source of income..
    Can he still blindly declare to IT authorities that it is capital gain and pay tax for it or will the IT question him for not registering the actual value??

    Reply
    • Sachith-If seller is ready to pay the tax, then why not the sale deed be at actual value?

      Reply
  57. Dear Mr. Basavaraj,

    Thank you for the wonderful article. This is so informative.
    What is the impact of property registration after GST implementation?
    Is it same 5.6%(Stamp) + 1% (Registration) of Sale Value ?

    Ashutosh

    Reply
  58. Hi Mr Basavaraj,

    Appreciate that you are responding to all the queries. I have finalized a ready to move in project for say 80L and I have received a sanction of about 80% from a PSU bank.

    Now for Registration, the seller says that we can execute a sale-deed at guidance value price which would come at about 55L. I have paid all the advance through cheque and there was no cash involved anytime during the entire transaction. I am not able to figure out if the banks are okay with a sale deed whose value is less than the original consideration price (agreement to sell + construction agreement).

    Would appreciate if you can share your thoughts on this.

    Reply
    • Sriram-Your builder is the biggest crook who want to encash around Rs.25 lakh as unaccounted. Never do this. In future if you want to sell the same property, then your cost of purchase is considered as per sale deed. Because of this, in future you have to cough more tax from the capital gain. Hence, follow the rules-Either Guidance Value or the Actual Price (whichever is higher).

      Reply
      • Hi Mr Basavaraj

        Thanks for the prompt reply. Yes I have conveyed the same to him. I am not sure how the banks are allowing this to happen!

        Reply
        • Sriram-Bankers are one more selfish entity. Think of yourself only and also your own benefit.

          Reply
  59. I bought a new under construction home almos complet 95%, And I have did registration/stamp duty in june 2017. but loan amount is disburse in July 2017, Should we have to pay any gst extra on it. or builder have to pay any extras GST.?
    Please confirm

    Reply
    • AND ALSO PAID SERVICE TAX /VAT AMOUNT IN THE MONTH OF JUNE.

      Reply
      • Thanks sir

        Reply
  60. Hi Basavaraj,

    We have purhcased site in bangalore and registered also but there is a some legal case is going on and now it is converted to CMC limit from Gram panchayat, my question is, is it possbile to tansfer our name from old builders in the khatha certificate, becasue in khatha office they are telling that no its not possible after withdrawing the case then only we can change the name in the khatha certificate.

    please suggest us.

    Reply
    • Unknown-As the case is in court, no authority will allow you to change.

      Reply
      • but already registerd the site in our name know then how to resolve this problem

        Reply
        • Unknown-NONE will take risk of going against law when the case is pending.

          Reply
  61. For buying a resale property, do I need to add car parking value to flat value while paying registration ?

    Reply
    • Deb-Car Parking charges is an illegal charge. It depends on you to add or not.

      Reply
  62. Hi Sir,

    I am purchasing an extra car park from the builder for the existing flat for which I have already done with my sale deed. Since OC is not yet obtained I understand ST & VAT are applicable @8.5%.
    Since GST is around the corners, what would be the GST % for the same ?
    Also, I understand ST & VAT are replaced with GST. Please confirm.

    Reply
    • Shakunthala-Not sure in your case as it is the additional car parking.

      Reply
      • Thanks for your quick response..

        Reply
  63. How will GST implementation change stamp duty or registration charges ?

    Reply
  64. Hi Sir,

    1- I would like to understand VAT and Service TAX calculation. Builder Says
    VAT = 5.5% of (Basic cost + Amenaties Cost + Car Parking cost)
    Service TAX = 15% of (Basic cost + Amenaties Cost + Car Parking cost+ Sewarage cost+ BESCOM cost/4 )
    Is it correct calculation? If not please make me understand

    2- GST 12%calculation on which value
    12% on (Basic cost + Amenaties Cost + Car Parking cost+ Sewarage cost+ BESCOM cost)
    or
    12% on only Basic cost

    Regards,
    Sapna

    Reply
    • Sapna-May I know the sale deed price (which includes in your case the other costs along with Basic Cost)?

      Reply
      • Hi Basavraj,

        I am in the initial phase to finalize the flat price. Where i am trying to figure out actual VAT, Service Tax and GST(1st July Onward).

        Assuming :
        Sale Agreement = Complete Value (Basic cost + Amenities Cost + Car Parking cost+ Sewerage cost+ BESCOM cost + VAT+ Service TAX)
        Sale Deed = (Guidance Value + Car Parking ) and Stamp duty + Reg. Charges

        Regards,
        sapna

        Reply
        • Sapna-Your builder is cheating you by charging for Car Parking. Second thing, VAT or GST and Service Tax is exclusive of BESCOM, Car Parking, Sewage Cost and some others (as they go on adding to garner more money). The registration cost is usually on sale deed value. There is a ruling that builders must not charge car parking separately.

          Reply
          • Hi Basavraj,

            I understood from your reply that

            1- VAT and Service TAX should be charge on Basic Value + Amenities. (before 30 Jun). Not on BESCOM, Car Parking, Sewerage.

            2- Similarly 12 % GST(1st July Onward) is only applicable on Basic Value + Amenities. How we can confirm that GST is applicable on what item (A B C D E)
            A- Basic Value
            B- Car Parking
            C-Amenities
            D-BESCOM
            E-Sewerage

            Regards,
            Sapna

            Reply
          • Hi Basavraj,

            Could you please confirm about VAT and Service tax / GST calculation?

            If possible please provide your contact details.

            Regards

            Reply
  65. Dear Sir,

    I am looking to purchase a flat/apartment in Bangalore, The property is new and ready to occupy.

    The property is being purchased is a part of from a land owner share,

    The cost of the property has been negotiated at 60 lakhs, If I register the property before 1/7/2017 the registration and stamp duty is to cost me at 6.6% on 60 lakhs.

    However if the registration is to happen after 1/7/2017, how is to impact the buyer for the ready to move in property.

    Multiple websites giving me different answer, please advise..

    Reply
    • Srikanth-I will not speculate on anything as long as it will be implemented fully.

      Reply
    • There wlll be no changes in registration and stamp duty….however you may suffer for the tax ( for move flats currently they charge only VAT (and noservice tax) which is anyhow less than GST charged for 12%

      Reply
  66. Can you tell me if stamp duty for flat is calculated using the total amount paid to builder including Service Tax+VAT+Amenties+Cess+Labour chages; or it should be pure flat cost i.e. total sqft*guidance value + car parking.
    in my case guidance value and actual per sft charges are same. hence want to understand will stamp duty be applicable on top of TAX+VAT as well; do govnt takes tax on top of tax??

    Reply
    • Kamlesh-Registration cost is always on the sale deed price which not included VAT.

      Reply
  67. hello sir,
    from july 1st 2017 the registration and stamp duty costs for flat buyers will be higher in karnataka due to GST?

    Reply
    • Kiran-Let us wait for implementation. As of now, there is no clarity.

      Reply
  68. Good Day Sir !

    I am planning to Buy an Flat near Chandigarh, Cost is around 36 lakhs, I am working abroad, How much it will cost in total to me and what shall i check/documents etc prior to buy the flat, Please guide me as i never did such purchase before & don’t know nothing about it.

    Reply
    • Sharma-First check the documents with the help of an expert lawyer (not with the lawyer whom your builder recommend). Once, you got the opinion that its properly legal construction, then think about registration cost and all. Be cautious…because it is one of the biggest unorganized sector.

      Reply
  69. Hi Basavaraj,

    I am going to buy a flat in apartment ( 3-4 years old ) which is A khata land, OC, CC approved project. But Owner didn’t apply for A khata for flat, Will I be able to get A khata on my name after registration ?

    Reply
    • Also How much would be the cost approximately for the same ?

      Reply
    • Vipul-You said it is A khata and again saying your owner not applied for A khata, it is confusing.

      Reply
      • Hi Basavaraj, A khata is there for whole land, he didn’t apply for A khata for his individual flat, my understanding is that individual flat owner also need to get their A khata. Please correct me if I am wrong, as I am new to Bangalore.

        Reply
        • Vipul-It is Khata Certificate. Let him apply and get it. Why is he not applying?

          Reply
          • He is the land owner, so having this flat under his share, he wanted to sell it out so didn’t apply Khata for flat.
            It’s 3 year old project, so wanted to know if I will be able to get khata for the flat or not and how much it will cost to me.

            Reply
            • Vipul-Whatever it may be, the reason expressed by him is not valid reason.

              Reply
  70. Hi Basavaraj,

    how is the guidance rate calculated for individual house, if it is double storied.
    will only land area be considered or the constructed area of both floors be considered?
    what if the constructed area is very less than the land area?

    Reply
    • Infosahay-It includes the property and storied also. Based on the construction and floors the property guidance value will be added to basic guidance value.

      Reply
  71. I have purchased a Flat from Land owner at value for Rs 50 lacs where Construction cost is Rs 3038000/- for sqft 1475 flat size and undivided share is 560 Sqft cost is Rs 1962000/- .

    Note :- This property is being bought from Land Owner share not from Builder .

    Requesting you to give me details how to calculate the stamp duty on this property . I need to register this property very soon . I am confused how to calculate stamp duty amount .

    Regards
    Sri

    Reply
  72. Hi Basavaraj,
    I am planning to buy an ready to move in apartment and plan to finalise by next week. I have few questions for you.

    1. I am planning for a house loan of 60 lacs. Do you suggest me to go with SBI as it is offering the lowest interest in the market ? Also, could you please throw some light on MCLR based loans ?

    2. Can I avail PMAY of 12 lacs and break the loan amount from banks from 60 lacs to 48 lacs ? (just calculative here)

    2. Since it is ready to move in, the OC has been obtained. Does the ST abd VAT applicable for the ready to move in homes ? (I read ST and VAT is NA for ready to move in).

    3. For a 93 lcs home, how much would be the registration charges ?

    4. How does it impact buying now when the implementation of GST is around the corner ?

    Reply
    • Rishi=1) Yes better to go. Nowadays all are MCLR based.
      2) Your loan amount does not matter for PMAY, but the purchased sale deed matters. They know very well the way people think 🙂
      3) YES.
      4) Calculate based on above rates.
      5) No idea. But surely if you are INVESTING, then stay away from Real Estate. However, if it is for your own usage, then go ahead.

      Reply
      • For point 2. If I understand, I am not eligible for PMAY for 93 lacs home. Is it ?

        Reply
        • Rishi-There is no maximum limit for the purchase amount. But the subsidy is restricted to the maximum of Rs.9 lakhs only.

          Reply
  73. HI ,
    I am going to buy flat in bangalore next month 1st week , Its a resale property . Cost 80 Lakh . I want to is there any time line for khatha transfer from seller name to my name ? If yes within how many days ? Also i want to know If any property value 80 lakh can you please tell how much i need to pay for khatha transfer ?

    Reply
  74. Hi Basavaraj

    Quite informative post it is. I would like to know on if there would be any other problems on registering at guidance value apart from the increase in capital gain taxes. Would there be chances of any legal issues?

    Please advise.

    Reply
    • Arjun-There would not be any legal issues. But it is always best to practice the rules right? By not following the rules, you are mostly helping the sellers.

      Reply
      • Thats right. Thanks. Also I have applied a Home loan of 50 lakhs but if i go by guidance value the property cost would be around 39 lakhs only. Would that amount difference be a problem to sanction loans ? As far as i heard the banks sanction loans based on the agreement signed. Please advise.

        Reply
          • I abide by the rules always but based in the financial situation, I have to go for guidance value registration. So wanted to clarify if the home loan will be sanctioned in my case as I had explained.

            Reply
            • Arjun-In your case guidance value is less and the purchased price is high. Then bank will sanction based on the purchase price ONLY.

              Reply
  75. Sir i am going to purchase land in kerala 2700000 rupees. I am already paid 500000 rupees in advance. And i apply for land purchases loan in 1900000 rupees. The manager said to me first you have to register for advance money in registrar Office. Acutely my question is what is the final stump duty in 2700000 rupees? And i I am working in an army that’s why any reductions in stump Duty?

    Reply
    • Aneesh-I am not sure about Kerala charges. Better you contact the registering officer for the same. There will not be any concession for army men.

      Reply
  76. Hi is the registration charges reviced as of april and how much is the ..per square feet that need to be paid ???
    in bangalore

    Reply
  77. Hello Sir,

    I’m Vinay goudar here , I took flat in Hubli, Ka. For 27 lacs. we are going to registration the flat in Next week but Builder and his Lawyer is asking for 15.35% registration fee in DD Format.. I saw your comments and gone through your blog but as per your method registration fee is around 9 %. My builder and lawyer is saying to pay 7.6 stamp duty, 3.75% Service tax, and 4% Vat. is it Right..?? to pay total 15.35% please give me an suggestions.

    Thank you,

    Reply
    • Vinay-Forget me, lawyer and builder. Visit register office, give them the sale agreed value. They give you the split of amount. Why to confuse? Then you will get who is right and who is wrong.

      Reply
  78. Hi Basavaraj,

    I am planning to purchase a flat in an apartment for Rs. 40 lakhs from land owner. Out the Rs. 50 lakhs, 20% of amount will be paid at the time of Agreement of Sale. I have paid in cheque of Rs. 1 lakh as advance booking amount. After one week we have signed Agreement of Sale which and I gave him a cheque of Rs. 7 lakhs dated 18th April, 2017. Now I went for a bank loan for Rs. 32 lakhs and I did not get loan amount confirmation from the bank. So I informed the owner to submit the cheque once I get get the bank confirmation. Will the bank sanction the loan without the transaction of Rs. 7 lakhs. Your suggestions will be helpful for me.

    thanks,
    Kumar

    Reply
    • Kumar-It is hard for me to say so. How can I come to know that your bank sanction the loan to you?

      Reply
  79. he builder is asking for payments before the agreement. The agreement amount is 15% of total sale value as per booking form and demand letter issue for paying agreement amount. and I already have made booking earlier by paying 1 lac. I have payment receipt and copy of the booking form. I am planning to pay by cheque which will take a few days for clearing.

    So, basically I have to pay, put my sign on the agreement and then deposit them with the builder. Builder upon verification of payment received (cheque clearing successfully) will return to me the agreement with their signatures added on to it. The agreement will be made in two sets of same text on stamp paper. At the time of handover of cheque they will acknowledge it by giving me a photocopy of the same with their seal and signature. Demand letter for payment of Agreement amount has already been issued.

    Buying through bank loan. Agreement value I will have to pay upfront so that bank will process the disbursement. They need a copy of the agreement to proceed.

    Further, the builder said that post registration original sale deed will be submitted by them to my bank directly and they will provide me a certified copy. Bank has said they won’t be disbursing without receiving the registered sale deed. How will the builder register in my name without having received the money first?

    The builder is one of the reputed builders from South India.

    Question:
    1. Is it fair for the builder to do it this way?
    2. What precautions should I take to ensure my interests are not harmed and the builder gives me the agreement as promised?
    3. What needs to be done with Sale Agreement post registration of Sale Deed?
    4. What should be the way out in such situation with registration of Sale deed?
    5. Should the Sale agreement be registered? The sale deed will be registered.
    6. How will the builder register in my name without having received full payment or vice versa how can my bank disburse without registration first?

    Reply
    • Rakesh-1) If they are acknowledging and giving you the proof of the same, then what is the doubt here?
      2) First check the builder’s ethics towards his profession. This is the utmost thing when you are dealing with builders (whether they are big or small, misguiding is their first priority in many cases).
      3) Sale deed is the major document then sale agreement.
      4) I am not getting your point.
      5) Better to register.
      6) That you have to check with Bank. But in many cases, banks do payment as per sale agreement and allow you to go for sale deed.
      7) It is based on the agreement that bank has to start disburse the amount. Your builder will not go for sale deed, until he receive the full payment (either from your own pocket or from bank).

      Reply
  80. Hello Basu.

    I just wanted to clarify if the registration of property stopped as I hear this from many people I meet.

    Also is registering a property dependent on when the purchase of property was done, payment in full to the builder etc.

    Thanks,
    Rajesh

    Reply
    • Rajesh-Instead of hearing from any people, better to check with register office. In my view NO. Registration of the property in all cases will takes place when you pay the full payment to the builder. Otherwise, who on this earth will handover the property rights of ownership without getting the full money?

      Reply
      • Thanks

        Reply
        • The property registration was not stopped. But need some clarity where is the property, jurisdictional registration office.

          Reply
  81. Hi,

    Am planning to purchase a flat in whitefield, Banglore. Looking for a good lawyer who can scrutinise the documents and provides his legal guidance on purchasing the flat. Please suggest some good lawyer as am new to this city.

    Reply
    • Prasad-If you are interested then you may contact Mr.Srinivas, old lawyer but knowledgeable. If you need his contact details, then email me at [email protected].

      Reply
      • Dear Basavaraj,

        I wish to buy a 3 BHK flat 1500 sq ft from owner in whitefield. 100% completed. OC and land Khata account received. Individual apartment Khatha yet to be received. My questions are as follws

        1.As per your blog i should insist for apartment Khatha from owner. Am i right??

        2.After GST what is the registration cost for the above said sq.ft ???

        3. Also i need Lawyer contact details..Kindly share the same. I’m new to bangalore. Kindly help me..

        Thanks and regards
        R Saravana Rajesh
        7736636224

        Reply
        • Saravana-1) Yes. 2) I am yet to clarify with concerned. 3) A lawyer for what purpose?

          Reply
  82. Hi,

    I have purchased flat in A grade builder and is now up for registration. Would like to know that registration cost is on BSP (Basic Sale Price) or total flat cost which includes many things like water and electricity provisioning charges , club house charges,parking charges etc.

    For eg , BSP as per SFT rate of flat is 4400000 and total flat cost including amenities etc. is 5700000.

    Reply
    • Vikas-The taxes will be applicable on sales agreement cost. Whether it includes basic price or total cost is entirely left with you.

      Reply
    • ok Thanks,will see what the builder guy says and since it is large and corporate builder I don’t think they will change things for me.

      Thanks for your prompt response.

      Reply
      • Vikas-Large and Corporate builder does not mean they not cheat you.

        Reply
  83. Hi,
    My registration is due next week and builder has asked 5.65% on sales value as stamp duty and 1% as registration charge , for that he will make DD on behalf of me and I need to transfer money to him.Apart from this he is asking Rs. 50,000/- as a cash at the time of registration for other legal charges/scanning/ etc. not sure why this cash?
    Also would like to know my sales deed is made in my name, can I get registration done both my wife and my name.

    Thanks

    Reply
    • Upen-Why not you make DD on your own? Rs.50,000 BRIBE (I said BRIBE as it is illegal to pay a single rupee also apart from the legal cost of registration). He is misusing your money.

      Reply
      • Thanks a lot…
        Also would like to know can I get the registration done both of me and my wife’s name.

        Reply
        • Upen-Procedure is same. Only you both have to present while registration.

          Reply
  84. Hi Basavaraj,

    I have booked a flat in Pune – Maharashtra few weeks back and I am about to make the agreement in coming weeks time. The builder team (apart from asking the regular 15% of agreement cost before making the agreement) asking me to pay the stamp duty and registration charges. I understand that it may be OK to pay the stamp duty, but why do I need to pay the registration charges now ? Is this a valid demand ? Can I discard this request saying that I will pay the registration only at the time of getting possession?….. Are their any advantages/disadvantages associated with paying registration charges along with stamp duty?

    Reply
    • Anukul-Registration fee and stamp duty you have to pay to Government directly but not to BUILDER. Something fishy in their motive.

      Reply
      • Hi Basavraj,

        Looks as if I did not placed the question correctly, so sorry for the confusion.
        I have been asked to prepare the cheque in favour of “Bank of Maharashtra”, so indeed the amount will go to government. My point is that I should pay only the stamp duty as this stage while making the agreement or any such instrument, but why should I pay the registration fees also?… Is registration required at this stage?….I was told by some of my colleagues that registration fees is to be paid at the time possession which will happen somewhere end of this year.
        So can I simply refuse to pay the registration fees … or do I need to pay the fees now?

        Thanks for the reply.

        Regards
        Anukul

        Reply
        • Anukul-Yes registration cost is not required NOW. Also, if you pay registration charges, then you have to register it immediately in register office. How can they collect?

          Reply
          • Hi Basavaraj,

            I had discussion with the bank with whom I am taking the home loan. They confirmed that only when you are funding the whole amount from your pocket and not taking any home loan then registration cost is not mandatory at the time of doing agreement. But if you are taking loan from bank and the loan is already sanctioned, then for money disbursement they want to see property registration, failing to which loan disbursement will not happen. Merely paying the stamp duty will not do. I checked the same thing with loan departments of few Nationalized and private banks, and they all speak the same language that registration is required for loan disbursement. Is this a new law because I never heard of this before?

            I don’t know the legality of the above mentioned condition and how far it is valid, but looks like I have to follow their norms and procedures. Bit strange that I could not find more information on this on internet.

            Regards
            Anukul

            Reply
            • Anukul-I registered the property in December 2016 and my home loan is with nationalized bank. They never put this condition. I feel something fishy between bank and builder. Cross check with other banks by personally visiting. It sounds too JOKING. How can you register the property without paying the full amount? Whether seller agree for that? Also, if you have that much money to register the property, then why the need of bank loan?

              Reply
  85. Dear Sir,

    I am planning to book a Ready to Move in flat(1350SQFT) costing around 51L in the coming week. The flat lies in Bangalore Urban area.

    What will be the other charges include Stamp Duty + Registration + Service Tax + VAT?

    Thanks

    Reply
    • Lavkush-Apart from the charges you stated there are NO other charges.

      Reply
  86. Hey Sir,

    Thank you your valuable reply. just quick one pls answer this.

    I have purchased a flat in apartment in Hubli, ka. Flat rate is 2150 rs per sqft and total 865 sqft area . I have given the advance of some amount and made pre sale agreement for my loaning process, So whats my Builder is saying that the flat registration will be cost 16% itseeems is it true.?? Bcoz i saw your comment and post in this website the registration cost like around 7%.. Buy Why my builder is telling me 16%..??

    Pls answer me..

    Reply
  87. Hi Basavaraj — purchasing independent builted house for 60lacs in bangalore-Electronic city but its 7yrs old building just i wanted to confirm how much it would be the property cost if its 7yrs old means?

    Reply
    • Vidya-It depends on the guidance value of that area. Also, how can I say the cost of property without knowing details? The biggest risk of this real estate industry is no regulated ways and no such guidance to evaluate the price. Prices always depends on buyers and sellers greed.

      Reply
  88. Hey Sir,

    Im Vinay G here im purchased an flat in apartment i wanted to get Registration done in month of march or April. Some ppl are saying after march stamp duty and registrations cost will be higher.?? is it true..?? And i wanted to know how much is cost of Registration..?? the cost in 1500000 in Hubli, KA 580023. Awaited for your reply…

    Reply
    • Vinay-There is no confirmation about hike in stamp duty. Hence, can’t comment.

      Reply
  89. Hello there,

    Is it true that the registration cost is going to increase in 2017-18 FY?
    I have booked a flat here in Bangalore & need to register, but somehow it is getting delayed. Please advice if the stamp duty & registration charge are going to increase.
    Thanks

    Reply
  90. Hi Basu,

    Is there any hope of change/removal of stamp duty for new plot registration after GST implementation in Bangalore.

    Seeking your help on same.

    Regards,

    Reply
    • Sudhir-There are many rumors. But let us wait for GST to be LIVE.

      Reply
  91. Good Initiative. Explained in simple terms.

    Reply
  92. Dear Basu,

    I work in bangalore and have booked a flat here on 1st march,17. And i have paid stamp duty & registration charges via demand draft in the name of sub registrar. Now the concern is i haven’t received any receipts for the payments done towards reg.& stamp. So, query is
    1. what is the way to claim that amount for tax rebate in IT return u/s 80C?
    2. secondly, i have already made some investments in (ELSS,PF,PPF) FY 2016-17 which is near about 1.2Lacs. Can i still claim income tax rebate on whole amount (i.e of reg.& stamp) or only 30k which is left u/s 80C ?

    Seeking your help.
    Regards,

    Reply
    • Ankur-1) It is usually mentioned in sale deed (If I am not wrong).
      2) The maximum limit for Sec.80C is 1.5 Lakh.

      Reply
      • 1. It has not mentioned in the sale deed. That’s the reason i asked this query.

        Reply
        • Ankur-Usually they will not provide the receipt. However, in my case it is mentioned on back side of sale deed. Check your’s.

          Reply
          • yes it is on backside of deed..Thanks..:)

            Reply
  93. Hello Sir,
    I wanted to ask you if there is any proposed increment in the Stamp duty/ registration cost for purchasing flat worth 32.75 Lacs in Bangalore whitefield area?

    Reply
  94. Firstly…This is a wonderful blog explaining the process!! Appreciate you for that..

    Secondly…we have booked a flat in November 2016 wort h 44.6l in HYDERABAD which is under construction and the procession would be 21 months from date of booking.
    My query is should we get the flat registered before approaching loan or Can we wait till we get procession? I might sound silly but just wanted to confirm.t

    Also any rough estimation about the registration and stamp %ges.

    Thank you

    Reply
    • Kavya-You risk your money if you register the flat without taking into possession. Don’t be in hurry. Let the flat construction complete. Once everything including OC and all ready, then go for registration.

      Reply
      • The builder says…for us to get a bank loan we need to get the registration done..Only then we are authenticated as the owner of the property for which we are applying loan ITSEEMS….

        How far is it true?

        Reply
        • Kavya-I think you met the BIGGEST THIEF of this earth. Banks will sanction money even without registration but based on the agreement and the part payment conditions. Beware of such builder. It seems he is eager to register property in your name before the construction completes and take away the money. Stay away from such fraudulent people. A big warning. Rest you decide on your own.

          Reply
  95. Hello Basavaraj,

    Very nicely explained and I could get answer to many of my queries through your blog and replies.

    I have a query for proceeding with registration.
    I have to go for registration of my flat.
    Sale/construction agreement are in the name if me and my wife.
    Also it is the same for home loan ; my wife is co-borrower.
    currently we are outside India and only I will be physically available for registration.
    I saw in your comments above that both the person need to be present.

    So in my case, what steps I need to do as my wife will not be able to come for registration.
    and will the flat be registered in both of our names or only in the name of person who is available physically.

    Thanks in advance.

    Reply
    • Arpeet-Physical presence is must. If she is not available, then the registration will be in your name.

      Reply
      • Thanks!
        if they register in my name, it is fine. but do I need to get some document due to her absence:
        for ex: authority letter or GPA etc.

        my builder is not giving me any clear answer.
        he mentions me to bring a GPA and NOC from bank.
        if I bring a GPA, it should be ok to register in both of our names ?.

        Reply
        • Apreet-Why not the loan be jointly and property be in single ownership? For that why builder need GPA?

          Reply
  96. If we purchase in Bangalore flat @ Rs.45.50 lac and register for same value . for that pls provide the Registration cost in detail of this Rs45.50 lac .

    a. Stamp Duty %
    b. Cess %
    c.Registration Charges %
    d.Service %

    apart from above , is there any expenses will be there.

    Reply
    • Hugo-The charges are explained in above post. What more you need?

      Reply
  97. I am purchasing corner plot in Kyalasanahalli Village, Jigani Hobli, Anekal Taluk, Bangalore Urban District.

    Cost of corner plot is Rs 33,04,000/- . Now Developer is executing for sale deed. For registration Developer asked me to issue 3 DDs of following value for stamp duty.

    (i) Rs. 1,88,989/-
    (ii) Rs. 36,344/-
    (iii) Rs. 18,172/-

    Please let me know as per Govt stamp duty / registration charges provided value to issue DD is it correct?

    Waiting for your reply

    Reply
    • Nitin-I already explained above about how to calculate. Take pain and do calculation. I am bit lazy 🙂

      Reply
  98. I want to purchase flat (Resale) in yelahanka. The saleable value for the property is 45 lakes. So what will be cost for registration and stamp duty ? Is it 6.6 % of saleable value? Or it will be different as I am purchasing resale flat?

    Reply
    • Arindam-The registration and stamp duty is on either guidance value or selling price (whichever is higher).

      Reply
      • For resale flat how it will be calculated? Guidance value is 42 lakh. Whereas, saleable value is 45 lakh. The seller already purchased the flat from builder during 2011. Now I am purchasing the same from the seller. So in this case also the stamp duty and registration charges will be 6.6 % or different as per Govt. Of karnataka.

        Reply
  99. Hi Basavaraj,

    We are planning to buy a flat in Nagarbhavi at 60lacs. This building has ground floor (Car parking) + 4 flats + terrace. When we asked about CC and OC, he mentioned that OC and CC is not required for this flat. It is required only when land/plot area exceeds 12000 sq ft or if the building has more than 12 units, only then CC/OC is issued. Is this true? We are about to finalize this.

    Reply
    • NSGV-OC is mandatory. If possible, I suggest to verify land documents with lawyer. In my view Rs.60 lakhs in Nagarabhavi is at much higher price.

      Reply
  100. I’m LEASING out my Bangalore flat for one year (that is, 12 months).

    What are the current registration charges and stamp duty for a residential lease agreement?
    I read someplace that there is a cap of Rs 500 in stamp duty on lease registrations. Is that true?

    Thanks!

    Reply
    • Firoz-I am not sure about lease agreement cost. Check with register office.

      Reply
  101. Hi Basavaraj, well written document . explained most of my queries on registration.
    My question a related to guidance value. I tried to find out the guidance value for an area and it was quoted as INR 2700/- per sqft.. I am getting a flat at INR 4500/- per sqft in the same area.

    Is there any regulation as to how much a builder can charge over and above the guidance value? Or can he ask for any price? Is there any method to find out a fair sqft price?

    Thanks,
    Abhinava

    Reply
  102. HI Experts, How to know the guidance value per area? I bought a flat of 980 Sq. Ft in Sunkadakatte(Bangalore) and I would like to guidance value in this area. We are planning to get registered in December 2016. Please help and thanks in advance.

    Reply
      • Thanks Basavaraj for your quick reply.
        I could not find the guidance value for Sunkadakatte area in the portal. Can you please help?

        Reply
        • Santhosh-If you need specific values, then visit the nearest sub-registrar office. They give you immediately.

          Reply
  103. Thanks basavaraju for this Info.
    It seems like am in a soup now . I recently purchased a plot in october . Bank gave me 70 % loan for purchasing the same and have registered the property slightly greater than the guidance value. where as market value is almost double the guidance value. And all the transaction of the purchase was through Bank and RTGS (White) as the seller was buying another property.
    Questions:
    How Govt owned Bank can give this difference DDs to get the property registered as per the guidance value?
    Can I repay the stamp duty again as per the market value ?
    How will the capital tax gain affect me ?( read your other post) 🙂

    Reply
    • Ganesh-Banks do such things because they love long term customers who be in trap called HOME LOAN. It is always better to go for the actual value as registered price.

      Reply
      • Basavaraj,
        That was so quick . Thank you very much !
        Yes Home loan is a trap but no other option for middle class people.
        Now this been done , Could you please let me know of any remedy that you know ?such that I can sleep peacefully ? 🙂
        Seems like we have overcome the Income tax act but not the stamp duty act, Do you have any idea of the consequences sorry about this Vague question.
        Also I guess we should spread this awareness at large of getting the value registered at the actual value.
        I have already started, Thank you once again!

        Reply
        • Ganesh-The ideal way is to register at the price which you ACTUALLY paid.

          Reply
  104. hi i have doubt, please clarify, we are planning to buy property for 60 lakhs, but we are going to register in the month of May or June 2017, that time GST will come so is it effecting for this property while doing registration / registration charges will get changed?

    Reply
    • Neeti-Wait and watch and also do keep in mind that due to change in tax structure are you going to cancel property buying? So let us wait for implementation of GST.

      Reply
      • ok thanks for your immediate reply, no we are not going to cancel,just for our information and please let me know is land value is going to be reduced as per govt rules in the next one or two months as area vise. because we are going to purchase built house that too 60 lakhs if its reducing means how much it will get reduced? if you are having an idia.

        Reply
        • Neeti-In my view guidance value will not come down. So it will not impact you. Only tax part may change.

          Reply
          • thank you so much for your reply

            Reply
  105. Hello sir I have a doubt . For example my flat cost 60lakh and my brother and father are the applicant so is it ok if any one of them is not available can another person is eligible for registration ..??My Brother is the main applicant .pls help

    Reply
    • Jagadish-Both property holders must present to execute the sale deed.

      Reply
  106. Hi Sir, I bought a flat for 60L in a Bangalore apartment and the loan was also given as per 60L (80%). Bank has disbursed the 90 % amount. Now i am going for registration, the builder is saying to register for the guidance value which is around 2500 but the actual value i paid is around 4000. Already many people have done the registration as per the guidance value. If i go for the guidance value then where does the difference amount gets accounted for ? Should i go with guidance value or the actual value i paid to the builder ? What advantage or disadvantage i will have if i go for guidance value ?

    Also , what does the registered value mean actually ? What all does it comprise ?

    Thanks

    Reply
    • NK07-He is forcing you for the guidance value to relieve his tax outgo. Never do that. Whatever the difference between the guidance value to actual value is his profit and unaccounted. Hence, even though you have to pay higher tax, always go for the actual value.

      Reply
      • Thanks Sir. The builder told that he is fine with the actual value but he told since I have not paid any cash and everything is from bank and also have paid TDS on full amount , so there is nothing un accounted. He told that I can still go fir guidance value and in future I can calculate the capital gain tax on full amount and not the registered value. Is this correct ?

        Reply
        • NK07-Either he is fool or he is making you to believe so. As per records, the registered value is guidance value. So for capital gain, the registered value will come into picture. Whether it is guidance value or actual value, your taxation will be based on the sale deed which mention the value at which you purchased the property.

          Reply
  107. sir,
    I have to get register property of KHB,Suryanagar 3rd Phase,.That is one residential site and its value is Rs 22,08,773/-
    Now,How many Demand Drafts I have to take and what values for each.
    Your esteemed reply will help me in this regard.

    Gurushanthappa. V.,

    Reply
    • Gurushanthappa-Contact the register office of the concerned. They calculate and let you know the exact amount.

      Reply
  108. Hi Guys,

    I need your help,

    I have registered a flat in a bangalore apartment for 42,8500, registration is completed in teh month of September, and now the builder is seeking for additional 1% service tax that i need to pay it to him.

    He says that, service tax has been increased it from 7.5 to 8.5 and I have to pay him the extra 1% to him by cash, and whoever registered after March 2016 has to pay the extra amount.

    Please help me, if this goes true and valid.

    Reply
    • Arun-I am not sure but why he is asking NOW after registration?

      Reply
      • Seriously I am not sure either, could you please let me know, how the service tax works and if the service tax is calculated on the land, then how will they pay against my flat. please do assist. If you dont mind, please share your contact number to discuss in person.

        Reply
        • Arun-I am about to register my flat. There is no such expenses the builder quoted me as SERVICE TAX. Hope you got my point. You can check with builder of why and where is the SERVICE here.

          Reply
  109. Sir iam buying b khatha property is stamp duty 5.1% and 1% reg fee and cess .5 percent it a corner site..is this not correctly

    Reply
    • Shiva-Check with register office. What I mentioned above is the information available on Registration portal of Karnataka.

      Reply
  110. Hi Basavaraj,

    As I’m searching for a flat in b’lore, there are lot of builders including A Grade builders in B’lore getting the property registered for Guidance Value. I have a couple of questions, around a property that I was looking at:

    1. In case of a Ready-to-move in property, apart from the risk mentioned by you in the above explanation, is there any other risk to go in for a registration with the guidance Value (For the property in question, the CC has been granted but OC is still pending for the builder and people/residents have started staying in the flats).

    2. If we go in for Registration based on the Guidance Value, the loan amount will be sanctioned against the Guidance value or the Sale/Agreed Value of the property.

    Reply
    • Dinesh-1) OC is also mandatory.
      2) It is based on registration value.

      Reply
  111. I am purchasing flat in Bangalore with Provident housing ltd, cost of flat is 58,96,910 ( Construction Cost 46,52,810 & Land Cost 12,41,000). Builder is executing sale deed for land & getting it register with sub registrar office. He is asking me to pay 280,500 as stamp duty. My question is builder is executing Sale deed for land only they why I am supposed to pay stamp duty on guidance value of flat. Please advise is he doing correct process. Please revert back today as I am going to do registration as of 1st Oct.Please…

    Reply
    • Pawan-Why sale deed ONLY on land but not on flat? In my view registration should be done when the flat is ready for possession and the value should be as per agreed value of flat BUT not for land separately. Strange to hear.

      Reply
      • flat is ready to move, he is executing Construction agreement separately for which I am paying him seperately. So he is registering land sale only. Is it correct. Builder name is Provident Housing ltd.

        Reply
        • Dear Basavraj,

          See the justification provided by compamy, please advise:

          Refer your bellow mail. We wish clarify as under :

          01. The apartment is registered based on the Guideline value fixed by the Govt or the Sale Agreement Vallue whichever is higher. The Sale Deed document, there s a mention of the Construction agreement as well and should be read as co-terminnus to the agreement. Further please note the statutory components (Service Tax) is applicable only on the Construction agreement value and not the Sale Agreement Value. Hope the above clarifies.

          The registration calculation is given below :

          Current Guideline Value is Rs.3120/= per sq.ft
          Floor rise is 2%
          Amenities 3.75%
          Car park consideration : Rs.150000/=
          Area of the apartment : Rs.1241 Sq.ft

          1241 X 3120 +2%+3.75%+150000/= will be Rs.4247459/= which is rounded off to Rs.42,47,500/=

          Stamp Duty @ 5.1% on Rs.4247500/= will be Rs.2,16,622/= rounded off to Rs.2,16,700/=
          Cess @ 0.5% on Rs.4247500/= will b Rs.21,237/= rounded off Rs.21,300/=
          Registration 1% on Rs.4247500/= will be Rs.42,475/= rounded off Rs.42,500/=

          Reply
          • Pawan-How tax matters to you for registering it on land value ONLY? While construction cost constitute Land Cost+Materiel Cost+Labour. I am not sure what is going on with them. They just churning rules as per their wish. Contact the lawyer.

            Reply
            • Dear Basavraj,

              thank you for your reply, just one more favor, I am not from Bangalore, I am from Delhi.You had guided me so much, please provide me name & phone no of any real estate lawyer who can provide me legal opining on my query.
              thanks

              Reply
              • Pawan-His name is Mr.Srinivas, you can discuss the matter with him by calling at his number 9886047740. I am not sure of whether he is using the same number or not. But he is knowledgeable and senior most.

                Reply
                • Hi Basavaraj,

                  even i have the same issue. we have sale agreement which is of UDS (land value) 15L + construction agreement (64 L).
                  total of 79 L for the apartment.
                  In sale deed builder is mentioning only 15 L as he is saying i am selling u only the UDS with only construction rights .
                  but the stamp duty is calculated as per guidance value of 61 lacs.

                  I am totally confused now on whats the law ? could you please help

                  Reply
                  • Dear Raghunatha,
                    The tax will be collected based on the guidance value if the selling value is less than that.

                    Reply
  112. Very well written and easy to understand

    Thanks
    Sachin

    Reply
  113. The saleable value calculated for the registration & stamp duty inclusive of VAT & Service taxes ?

    Reply
  114. Hi Sir
    I have purchased a flat for 51 lakhs. I hear that if the cost of flat is more than 50lakhs the property has to be registered at same value. Can you please let me knowhow can I get it registered at guidance value to save some stamp duty as I need to arrange for huge cash which comes to 3.5lakhs.

    Reply
    • Shwetha-I am not sure who guided you. I am also not aware of such rules. In my view, what I have written above are true.

      Reply
  115. Dear Basavaraj,

    I came to know from my friend that in Bangalore no more regular stamp paper or even e-stamp are used for registering property. He said that it is prepared on a-4 sheet on which money paid for stamp duty and registration as form of DD are mentioned and sub registrar puts seal on it.
    Is this correct?

    Reply
    • Sagar-I am not sure. Is there any source to confirm by your friend?

      Reply
  116. Mr Y when bought the property in FY 2000-2001 used guidance value to save the current stamp duty. Do you think in 10 years he changed so much not to use guidance value while selling 🙂 🙂 Also i am sure it will be much easier to find a buyer who is willing to register for guidance value to save the current stamp duty. 🙂 I am not sure about Flats but in case of land that’s what is happening now.

    Thank you for the post.

    Reply
    • Vidya-Good POINT 🙂 But here my point is taxation, which based on indexation benefit.

      Reply
  117. Very well explained and very helpful information

    Reply
  118. Dear Basu,

    Currently in Bangalore for registration not even e-stamp papers are being used. Registration department asks us to print the agreement in a plain paper (A4) and get it registered. Kindly correct me if I am wrong.

    Reply
    • Kesava-May I know the source of this information? In that case, how can you pay the stamp duty payable to Government?

      Reply
      • Dear Basava,

        My friend has purchased a property in Nov 2015 (8 months ago), then the lawyer has prepared and printed the documents in white paper. Stamp duty and Registration charges are paid with two different demand drafts.

        Reply
        • Kesava-If stamp duty is paid as per the valuation, then there will not be any issue and you are claiming that the same is registered.

          Reply
  119. Thank you so much for the detailed explanation.

    Reply
  120. very well explained.

    Reply

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