What is the stamp duty on property purchase in Karnataka and how is it calculated?

FY 2025-26 under the Karnataka Stamp Act:

• Up to ₹20 lakh: 2% stamp duty
• ₹20 lakh to ₹45 lakh: 3% stamp duty
• Above ₹45 lakh: 5% stamp duty

Surcharge: 10% of stamp duty within BBMP, BDA, and BMRDA limits. Registration: 1% (no cap).

Example: ₹80 lakh Bengaluru flat (BBMP area) → Stamp duty 5% = ₹4 lakh + 10% surcharge ₹40,000 + Registration 1% = ₹80,000 → Total ₹5.2 lakh (~6.5%).

The guideline value is set by the IGR Karnataka and updated periodically. Stamp duty is levied on the higher of guideline value or sale consideration.

Kaveri Online Services (kaverionline.karnataka.gov.in) provides: (a) guideline value search by district, taluka, village, and survey number; (b) a stamp duty calculator for exact computation.

Karnataka introduced fully paperless pre-registration — documents are uploaded online before the SRO appointment, reducing queue time at the office.

1. Verify guideline value and calculate stamp duty at kaverionline.karnataka.gov.in → Duty Calculator.
2. Pay stamp duty online through Kaveri portal (net banking / debit card / RTGS); download payment challan.
3. Upload draft sale deed and supporting documents (title chain, Khata, EC, identity proofs, PAN, Aadhaar) on Kaveri portal.
4. Book SRO appointment online; walk-ins not accepted.
5. Appear at SRO with both parties for Aadhaar e-KYC verification.
6. Download registered document from Kaveri portal within 24–48 hours; physical copy also issued at SRO.

Karnataka buyers purchasing property for ₹50 lakh or more must deduct 1% TDS from each payment to the seller, including every instalment under a construction-linked plan.

Process: File Form 26QB on tin.tin.nsdl.com within 30 days of the end of the month of each payment. Issue Form 16B to the seller within 15 days of filing. For a ₹1.2 crore Bengaluru apartment with 10 construction-linked instalments, this means up to 10 separate Form 26QB filings totalling ₹1.2 lakh in TDS.

Karnataka-specific points:

• K-RERA registered projects: the registered sale agreement specifies the payment schedule; TDS applies to each scheduled payment on the due date.
• Kaveri portal paperless registration: TDS deposit (Form 26QB challan) is one of the documents uploaded during the pre-registration upload step. Verify this is filed before your SRO appointment.
• If the seller has obtained a certificate under Section 197 of the Income Tax Act for lower or nil TDS, check its validity period before reducing deduction below 1%.

Non-deduction attracts interest at 1% per month plus potential prosecution; late deposit (after deduction) attracts 1.5% per month interest.

Registration at the SRO secures legal title, but two further administrative steps are essential in Karnataka before the transaction is fully protected:

1. Khata transfer (BBMP / local body): The khata is the municipal revenue record showing who is liable for property tax. After registration, apply at the relevant local body for khata transfer. For Bengaluru: BBMP at bbmp.gov.in; for other towns: the relevant CMC, TMC, or Gram Panchayat.

Required documents: registered sale deed (certified copy from Kaveri), previous khata certificate, latest property tax paid receipt, Aadhaar of buyer, and application form. Fee: ₹500–1,500. Timeline: 1–3 months at BBMP; faster at smaller local bodies.

A-Khata vs B-Khata: A-Khata indicates a property in an approved layout with sanctioned building plans. B-Khata indicates an unapproved or irregularly developed property. B-Khata properties cannot obtain building plan approval for additions or redevelopment, and some banks decline home loans against them. Verify khata status before purchase by searching kaverionline.karnataka.gov.in or directly at the relevant local body.

2. Encumbrance Certificate post-registration: Download an updated EC from the Kaveri portal 2–3 months after registration — it should now show your transaction. Retain the post-registration EC along with the registration documents for use in any future mortgage or resale.

Bengaluru's fast-moving real estate market and complex jurisdictional layers (BBMP, BDA, BMRDA, Gram Panchayat) produce specific transaction risks:

Conversion status of agricultural land: Land in Bengaluru's periphery must be converted from agricultural to non-agricultural use by the Revenue Department before it can be used for residential development. Buying unconverted agricultural land as a residential plot is illegal and exposes the buyer to demolition action. Verify the conversion certificate (Section 95 of the Karnataka Land Revenue Act) before purchase.

Builder-buyer agreement vs sale deed: In off-plan purchases, buyers typically sign a Builder-Buyer Agreement first, then receive a registered Sale Deed on handover. Stamp duty is payable on the sale deed. If you assign (sell) your under-construction unit to another buyer before handover, a separate stamp duty on the assignment deed applies — confirm with your advocate before assigning.

Society formation delays: Under the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972 (KOFA), the builder must form a cooperative housing society or apartment owners' association within prescribed timelines after handover. Builders who delay society formation to retain control of maintenance revenue can be reported to K-RERA and the Registrar of Cooperative Societies.