What is Stamp Duty?

Stamp Duty is money that the government charges to “legalize” documents. The Sale Deed document in a Real Estate transaction can be considered legally effective only if the Stamp Duty is paid on it. The name Stamp Duty comes from the historical practice of paying for a “Stamp” to be impressed on a document or affixed to a document. It is another way for governments to collect money from its citizens – just like how it collects various kinds of taxes (income tax, sales tax, excise tax, etc.)

Stamp Duty in Bangalore

The Stamp Duty needs to be paid during registration of the property for all real estate transactions in Bangalore. Stamp Duty in Bangalore is based on the value of the property being registered. While the Karnataka government revises Stamp Duty rates yearly, it is approximately 5% of the value of the property in 2012-2013.

Judicial vs Non-Judicial Stamp Duty

Often times there is confusion surrounding the two kinds of Stamp Duty – Judicial Stamp Duty vs Non-Judicial Stamp Duty. Judicial Stamp Duty is only relevant when you are required to pay Court related fees. Real Estate transactions and documents such as Agreement of Sale, Sale Deeds, etc are always executed via Non-Judicial Stamp Duty or Non-Judicial Stamp Paper.