Apart from the price of the property there are a number of other costs involved while purchasing real estate. Stamp duty and registration are two such costs that can make a big difference to your budget.
1. What is Stamp Duty?
Stamp duty is a form of tax levied on documents or transactions. Stamp duty fees differ from state to state. In Bangalore, for sale deeds, the current stamp duty is 5.65%, including surcharge and cess, of assessable value.
2. What is registration fee?
Registration fee is levied for the registration of documents under the provisions of Registration Act, 1908. The registration fee for a sale deed is 1% of assessable value.
3.What is the assessable value of the property
The assessable value of the property has 4 components
- Saleable Area value – It is calculated by multiplying the guidance value of the area with the size of the property depending on whether it is an apartment, an independant house or a plot.
- Car Park Value – Calculated on basis of saleable area value
- Floor Rate Value – For units located on the 5th floor or above
- Amenities’ Value – For units located on the 5th floor or above
All these add up to the assessment value of a property.
4. How is the saleable area value different for apartments, plots or individual houses?
Saleable area value is calculated differently for each:
- Individual flat – Super built up area of the flat X Guidance value
- Plots – Sq. ft. area of the plot X Guidance value
- Independent houses – Total area on which the house is constructed X Guidance value
5. What is guidance value?
Guidance value is the per sq. ft. Value fixed for a particular road/ area, below which you cannot register a property.
6. Does the guidance value change areawise? And how often is it revised?
Yes. The guidance value changes depending on where the property is located. Rural areas tend to have higher guidance values. It is set by the committee constituted by the Inspector General of Registrar and is reviewed and revised when required.
Apart from the price of the property there are a number of other costs involved while purchasing real estate. Stamp duty and registration are two such costs that can make a big difference to your budget.
