Bangalore property and rental scene has become dearer with the new with a new guidance value of property that is increased by a as it increases all property rates in Bangalore by 20 to 25 percent, irrespective of inflation. . COMEDK Exam Dates Announced, April 19 Last Date to Apply. edocki.info provides information for the general public for making calculations of stamp duty, land value, property value and district land rates in. The guidance value is the minimum rate at which a property can be registered Ashish Gupta, Times Property, The Times of India, Bangalore.
Property Registration Charges - Least Known Ways to SAVE
These costs are not uniform in all states. I try to concentrate on Bangalore or Karnataka as I reside in Bangalore. 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.Guidance Value
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. It is a type of tax collected by Government to validate your agreement. 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. As per Government portal, the current stamp duty charge for Bangalore and Karnataka is as below.
The detailed cost of such stamp duty and registration charges are listed in Karnataka Government Portal. Stamp duty and registration charges are calculated based on the salable value of property. It is the value declared by respective state government for each area of the state.
Charges for a sale deed
Below this value, registration of selling is not allowed. So the salable value equals to guidance value or actual salable value whichever is higher. Then your property registration value for that area must not be below Rs.
It may be higher, but must not be below it. Say for example the guidance value of this area is Rs. So in this case the value of property for sale is equal to guidance value. Now the calculation goes as below. So the total Stamp Duty and Registration charges will be Rs. 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?
Flat, land and Property Stamps and Registration charges in Bangalore and India - BasuNivesh
Everyone has their vested interest. Not many buyers are aware that under the state stamp act they can appeal to sub-registrar for determination of market value. The matter is referred to DC valuation or concerned authority for determination of the market value. In case, the concerned authority is convinced that market value is lower than circle rate. The buyer is allowed property registration at a lower value. Therefore, a buyer can save property registration charges.
This option is available only for under construction property. Typically a buyer sign two agreements with the builder i. Sale Agreement and Construction Agreement. It includes the price of land and cost of land development. For example, for a flat of sq ft super built up area. Considering property value is 30 lac. In this case, the builder will divide 30 lac in two parts i.
The sale agreement for UDS of sq ft will be at circle rate, or govt guidance value says 10 lac. Balance 20 lac will be included in construction agreement towards the cost of construction. The sale deed will be executed for UDS of sq ft i. Therefore, the buyer will save property registration charges on 20 lacs towards the cost of construction.
The construction agreement is normally executed on stamp paper of Rs Just to add that in some states like Tamil Nadu, it is mandatory to register both sale agreement and construction agreement.
This option is only possible in states where registration of construction agreement is not compulsory. Reason being, in the case of joint ownership, a co-owner should be co-borrower. Just to save few thousand rupees, this kind of scenarios should be avoided. Study local stamp act: Please note that property registration charges are a state subject. The rules vary from state to state. You should review the local stamp act or hire a professional who can help in this regard. Sometimes, state rules help you to save property registration charges.
For example, most of my clients in Maharashtra are not aware that if you sell the property within one year of buying from a builder, then the property registration charges are applicable only to the net profit.