Buying a property is not an easy task given the charges the buyer has to bear other than the cost of the flat. When you buy a home, it is not just the cost of the property you have to pay. There are additional charges like stamp duty, registration charges, VAT, etc. that the buyer of the home has to pay. These charges vary from state to state and are very important if you need to buy a home in your name. Many people are unaware of these charges and they fail to add this to their budget while buying a home. As per the recent rules, you should pay 5% of the total value of your registered property as stamp duty and 1% of the registered property as the registration charges in Bangalore.
The stamp duty is levied by the state government on the guideline value of the property and the registration charges are levied for the registration of the documents. These charges are compulsory and vary from state to state. Let’s decode the stamp duty and registration charges in Bangalore that will be useful when you consider buying a property.
Stamp Duty is a way of documentation of the property on a stamp paper when buying and selling a property. When it is done on the stamp paper, it is considered that the documentation is legal. Stamp Duty is paid when buying the stamp paper and it is a tax collected by the government. The document with the stamp duty paid is considered to be the evidence of the sale of the property. The Stamp Duty is fixed by the respective state governments and differs from state to state.
Stamp Duty is calculated on the basis of the market value of the property. It is 5% of the total value of the registered property and the buyer has to bear it. Stamp papers of the value equivalent to the value of the stamp duty have to be purchased in the name of the people involved in buying and selling of the property.
The charge levied on the registration of the property is called the registration charges. The charge is actually the processing fee charged by the registering authority and implies that the property is registered in the name of the buyer and has all the legal rights. Registration charge is 1% of the total value of the property registered.
Horamavu is an area in Bangalore that is just 3km from K.R. Puram railway station. It is a very fast developing neighborhood in Bangalore and there are various new projects in Horamavu that are coming up by the established builders. For registering the project in Horamavu, you should be aware of the various charges like Stamp duty, registration charges, Vat, etc. and consider them into the budget of the flat.
While buying a property, stamp duty, registration charges, and various other charges play an important role in the total cost of the flat. Hence, always consider these charges when buying a property to avoid exceeding your budget.